Question on Accidental Payment on an Active Balance Transfer Card

auindie on 30/01/2025 - 16:15

I currently have an active balance transfer on my CitiBank Prestige card, where I have been making the monthly minimum payments to avoid any interest charges. This afternoon, I accidentally forgot to cancel my auto debit of gym membership, which I had intended to cancel. As a result, the charge was applied to the card. I’ve already contacted the gym, and they confirmed that they will issue a refund within a business few days. However, I’m concerned that this charge might impact the balance transfer, potentially causing interest to accrue on the entire balance, including the club membership fee. I’ve done some research online and took care to avoid making any purchases on the card to prevent paying interest. Unfortunately, this particular payment slipped through.

My question is: Is there any way I can avoid paying the high interest fees, or will I need to pay off the balance (around $15K) even though there are still five months remaining on the balance transfer offer?

I’d greatly appreciate any advice or insights from those who may have been in a similar situation.

Financial

Comments

  • MITM on 30/01/2025 - 16:20

    Once the gym fee has been refunded back to the card, I'd call Citibank and explain the Gym made a wrong debit and now you're impacted. Ask for a waiver in this case.

  • Drpepper666 on 30/01/2025 - 16:34
    +1

    Check your T and Cs?
    I don't think that's how balance transfers usually work

  • lookingfordeal on 30/01/2025 - 16:49
    +2

    Interest may accrue on the club membership fee everyday it is not paid off ( there is zero interest free days on retail purchase when balance transfer is active ), why should there be interest accrued on the entire balance ?

    • jv on 30/01/2025 - 18:26

      why should there be interest accrued on the entire balance ?

      because that would work in the bank's favour…

  • tooblue on 30/01/2025 - 21:38

    Any repayment (NOT refund) will go to the portion with the highest interest rate. The refund from the gym does not make any difference with most credit cards.
    Your best bet is to pay the same amount of the gym fee right after the next bill date. The interest incurred will be negligible. Or to be safer, pay the same amount of the gym fee to the card immediately.

  • DemocracyManifest on 31/01/2025 - 09:11

    as above that transaction just would accrue interest first

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