Question: Does A Refund To A Credit Card Count As A Payment?

How does refund to credit card work?

In the event that an item purchased with a credit card is returned, the retailer will issue a refund to your credit card account instead of issuing funds directly to you.

Remember, the merchant is actually paid by the credit card issuer during a credit card transaction and not by the consumer.

What happens if I get a refund on a credit card with no balance?

When a refund is issued to a credit card with zero pending payment there will be a negative balance on the credit card, which essentially means the credit card company owes you money. This balance will be set off against your credit card liability in a subsequent period.

How do you get your money back from a credit card return?

If a credit card refund results in a negative account balance, the issuer will either wire the money back to your checking account or send you a check. Alternatively, you could charge additional purchases to the card to bring the balance back up to zero or more.

Can I get a refund on a credit card payment?

When you make a purchase and pay with your credit card, you don’t actually pay money to the merchant. Rather, the merchant is paid by your credit card company. Since you didn’t pay the retailer directly, it won’t refund you directly, either. Rather, the retailer will issue a refund to your credit card account.

What does it mean when it says refund sent?

shows “Refund Sent”, the IRS has sent your tax refund to your financial institution for direct deposit. It can take 1 to 5 days for your financial institution to deposit funds into your account. If you requested that your tax refund be mailed, it could take several weeks for your check to arrive.