Credit Card Statement, Closing Balance and Refund - How Does It Work?

• 

  elusive on 28/06/2018 - 00:40

  +3

  Call them up and ask.

• 

  Godric on 28/06/2018 - 00:57

  If you're worried pay the $50 and anything in credit will be reimbursed, or you could call them to confirm.

• 

  retiredfeline on 28/06/2018 - 01:13

  +4

  The opportunity cost of $30 over a month to play safe is about 10¢ and you started a thread for this?

  It's $20 but you didn't hear it from me and I won't back you up because ultimately you should check with them.

  • 

    OzFrugie on 28/06/2018 - 13:24

    -1

    U seem sure that they were the actual figures, dont u?

    The actual figures are 50k and 20k

    • 

      retiredfeline on 28/06/2018 - 13:42

      +1

      Normally I assume people are on the level with me but you can be an outlier if you like.

      So, all the more reason to call them instead of relying on random strangers on the Internet who don't really care if you make the wrong move. And a poll is not the way to get the answer, especially as it's split evenly.

      Any credit put into the account before the due date has the effect of reducing your debt same as if you had made a repayment.

      Again, I never said any of this if you get into strife.

    • 

      HighAndDry on 28/06/2018 - 13:47

      They're sure because that's what you said in your post. We don't usually assume you're lying, or that you don't know the difference between $20 and $20,000.

      • 

        OzFrugie on 28/06/2018 - 14:42

        Yes, I know, I was just making a point that it's not about the opportunity cost because it really depends on the amount and what you are going to use that money for instead.
        It's more about understanding how they work and not getting stung by interest.

        Anyway, 28 Deg says just pay the current balance ie the $20 (or $20k) ;)

      • 

        HighAndDry on 28/06/2018 - 15:03

        @OzFrugie: True - it does depend on what else you might use it for, but as far as interest is concerned, just move the decimal place. (You're right, $0.10 is still very different from $100.00) but it's not really the commenter's fault for taking your post at face value.

• 

  kipps on 28/06/2018 - 06:50

  $20.

  And if you don’t ever want to pay interest then the safest thing to do is create a direct debit and let it take care of these things.

• 

  RM on 28/06/2018 - 07:32

  -2

  The $30 credit will not be counted as a payment against the outstanding. Their system is looking for a $50 min payment, so if that doesn't happen (a payment, not a credit) then interest will apply.

  • 

    retiredfeline on 28/06/2018 - 07:52

    +2

    It's not a minimum payment, OP states that it's the closing balance at the statement date.

• 

  altomic on 28/06/2018 - 08:13

  $20 is $20

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  JimmyF on 28/06/2018 - 08:53

  +1

  Closing balance of the latest statement $50.
  always pay the closing balance before the due date

  Ok, so this is what is due before the closing date

  my account received a refund of $30

  Was it received after the statement was issued and before the balance is due? If so, it'll count as a 'part payment'.

  The main point here is to ensure that I won't get stung by interest

  Then pay $50

  As a general rule you have to pay the $ amount owing on the statement before the closing date to avoid interest. Any credits/over payment will be rolled over to the next month.

• 

  barbarella on 28/06/2018 - 09:52

  +2

  Consider that the $30 credit is part payment (done) so therefore you only need pay $20.
  Look at your balance online and disregard what was in the statement.
  Mum

• 

  tio on 28/06/2018 - 10:03

  safest bet would be to pay the greater of either the remaining balance or the minimum amount as shown on your statement.

  Usually banks T&Cs will let them charge you a late payment fee (not interest) for not paying the minimum amount on time. So if the minimum amount is more than $20, best to pay that amount. Refund/credit from merchants doesn't count towards minimum payment unless your balance is $0, at least that's from my experience.

• 

  shaz0316 on 28/06/2018 - 10:06

  Once you pay $20, your account balance is $0-as interest is calculated on balance and you can't pay interest on a $0 balance you are safe.

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  HighAndDry on 28/06/2018 - 10:23

  Pay the $50.

• 

  Randxyz123 on 28/06/2018 - 10:46

  Should I now pay $20 or still $50 as per the statement's closing balance?

  Call them and ask.

  Your statement probably won’t be reissued though so I’d say it’s $50 still and $30 will be reflected in credit on your next statement.

  To be sure just call them

• 

  peterpeterpumpkin on 28/06/2018 - 11:20

  I had a similar but different question with debit cards regarding Beem It and its apparent use of the EFTPOS refund system but neither my bank (MyState) nor the OzBargain community had the slightest idea (https://www.ozbargain.com.au/node/381274). The only true way to test it is to take the risk.

  • 

    HighAndDry on 28/06/2018 - 13:50

    Re your particular query, I wouldn't think so. A refund is basically a reversal of a previous payment, not a discrete payment towards the balance. If nothing else, it'd open up the door to being able to rort the minimum payment system by making a big purchase every month from a retailer with generous returns policies and using that refund as your minimum repayment.

    • 

      peterpeterpumpkin on 28/06/2018 - 14:11

      That's a very good point. I'd like to see this tested since loopholes in the financial industry are often ignored until abused.

• 

  OzFrugie on 28/06/2018 - 14:43

  28 deg says $20. Close thread

  • 

    HighAndDry on 28/06/2018 - 15:02

    +2

    Don't you mean $20k?