Do Cashback/Refund considered as a Payment in Credit Cards after Bill Generation?
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I am creating this topic that will be beneficial for all regarding refund or cashback considered as payment in credit cards or not. There are lot of confusions regarding this topic as some banks consider it as payment and some not. From my experience, i have noticed that HDFC Bank considers cashback or refund under credit card payment. I have tried this myself and never incurred any charges. On the other way, ICICI and SBI Banks do not consider refund or cashback as payment. Please share your experiences here.
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Yes. Please share your experience.
just keep your total dues zero at the end of due date including cashback,refunds & payments… money is money cashback or payment end of discussion
Citi also considers refund as payments, atleast they adjust amounts without issues.
Let me share trick in case you get big amount refunds after statement generation. Many are already aware, but in case those who don't know, make use of "minimum amount due".
Lets say u make a purchase of 50k on April 8.
Then statement generates on April 10 (total due: 50k; min due: 2.5k; due date: April 28).
Now you get refund of 50k on April 15.
You definitely don't want to pay 50k now, no matter which bank, so pay min amount due of 2.5k.
This will make bank software think that you did make a payment from your side and total due is also paid off, so no late fees or interest charges. This works fine with majority of banks like Axis, ICICI, Citi, Kotak, HDFC, HSBC, IndusInd, Amex, Yes, etc.
I've recently got bob and idfc cards so yet to test this on them.
Now I know your cc has 2.5k excess payment, but trust me, that is still better than fighting with customer care to reverse those charges for most banks! 😅
From my experience,
Citi, Amex and HSBC consider them as payments.
ICICI, Indusind, Axis does not consider them as payments.
No matter the refund or anything else, if a credit card bill is generated with non-zero amount then always pay at least min due amt mentioned in the bill.
By paying at least minimum amount due, the rest of the balance gets carried forward and interest is charged on that amount from the date of transaction.
After bill generation
Refund is not considered as payment for some banks
Always ask customer care
Else it will be troublesome
Better take refunds before bill generation date. If u take refund after bill generation then do a minimum or full payment to avoid issues..
if credit card is utilized to its limit and then paid amount to card before bill generation,
1) can the card be utilized again ?
2) if cancelled refund comes to card , will it be considered by IT dept? ( Had ordered 4l+ worth of electronics items for client but she changed mind so had to cancel order, so refund came back in account)
RBI has made new set of rules regarding cashbacks/refunds. These will be considered as payments if credited before due date of payment.
has anybody tried credit balance refund feature of sbi credit card?
would there be any charges for the same?
Referring to RBI DoR.AUT.REC.No.27/24.01.041/2022-23 Dated April 21, 2022 it clearly says in para 10 (e) that payment towards refund and other similar transactions shall be adjusted against the payment due.
Want to know for BOB Credit Card?