In this brief guide, we are going to discuss the statement “ refund to credit card with zero balance”. Is it possible to refund to a credit card with a zero balance and what happens?

Refund to credit card with zero balance

If you get a  refund to a credit card with a zero balance when the refund is processed the credit card will have an increased available credit limit. 

This means your refund will show as a surplus on your credit card. This means it may also show that you have a negative balance due.

Some credit card companies do it this way but some credit card companies may also send you a cheque if you get a refund on a credit card with a zero balance.

You should also know that if you refund to a credit card with a zero balance you won’t have interest paid on any surplus funds on your credit card. The credit card provider will also likely not charge you but you should check the terms of your arrangement with your credit card provider.

You should contact your credit card provider and ask them as the policy may differ from one credit card provider to another.

FAQs: Refund to credit card with zero balance

Below are some of the most frequently asked questions about making refunds to a credit card with a zero balance.

Do credit card refunds count as payments?

Yes, credit card refunds may count as payments they are credited to your account. You should check to see when the refunds will be processed before deciding on if to wait on the refund or pay your monthly credit card balance. 

How long does it take to get a refund on your credit card?

It can take as long as 7 days to get a refund on your credit card but in some cases, this may even be significantly longer.

In this brief guide, we discussed the statement “ refund to credit card with zero balance”. Is it possible to refund to a credit card with a zero balance and what happens?

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.