I recently received a refund for a payment which I've made using my CC. The refund payment came since last Friday and it was shown completed on paypal transaction (to be returned back to my CC). However, until today I haven't seen the amount showed up in my CC balance. Any idea how long it will take? I don't think the backlog wasn't on Paypal itself since the fund has already been returned back. It was like 2 seconds for the fund to be taken from my CC to make the payment and now it has been already close to 5 days and the fund is still not showed up in my account. Any idea anyone?
Well, that is how the credit card company works. The credit card is a took for spending money but not to receive money. You should see the refund back into your credit card within the next two billing cycles from the time the merchant initiates the refund. However, it can be as fast as a week depending on your bank.
Hey eddy...does that mean OP has to pay his credit card bill for the above transaction this month? And the refunded amount will be compensated in next billing cycle?
Well, it depends. He could wait till the next physical bill to arrive to see if the refund is posted. If it is, he would not need to pay anything. If it is not, he could just pay the minimum sum and not be penalized but pay interests for the outstanding amount. Alternatively, he could pay all the outstanding and then wait for the refund the next time around. The last option is what I always do.
Well, in the case of USD to USD account, that would not have any consequences except for the loss of sum interest. But in the case of FX, that would be different since the selling and buying price is no longer the same.
I am not talking about the loss in terms of foreign exchange but credit card typically would charge an interest if you have outstanding balances (ie interests on the unsecured loan).
I'm also not talking about having outstanding balance. The amount has been settled and my only concern is when does the refund money going to arrive. Can't understand where to money is floating right now before it reaches CC.
Well, as long as the refund is not already in your account, the amount would still be deemed to be an outstanding balance unless you have already paid it. Like I said, the credit card system is made mainly as a tool to pay out. In fact when you make a purchase, the money is not immediately out of your account but rather there is a hold for that amount until the merchant submits the necessary documentations and when your credit card bank post that amount to your account. The banking system is a very complex system. I supposed if you require a more definitive answer, it is best that you call your credit card bank and ask.