Random credit card payment question

[DLgal]

Okay, this is probably a stupid question, but I've never encountered this before.

I pay my credit card in full every month. My last statement amount was $4850. HOWEVER, $400 of that was some online shopping orders that I returned and were credited AFTER the statement closed. So, I need to set up my upcoming payment. When I go to make the payment, my options are "statement balance in full $4850", "minimum payment", or "other amount." I assumed that the credits would be taken into account when I went to input the payment and it would adjust it to the outstanding amount of $4450, but it didn't. I know my AMEX does that so that is what I assumed would happen on the payment screen.

So, if I make a $4450 payment, will my account be considered "paid in full" for that billing cycle, or will I get hit with interest charges if I don't pay the "statement balance in full $4850" amount?

 

[DizMe]

I don't know, but I would call them and explain the situation and see what they tell you. I'd want to be very sure they weren't going to charge me an interest fee.

ETA: Better yet, get it in writing. If it's Chase, you can Secure Message them and be sure to keep the response.

 

[DLgal]

I don't know, but I would call them and explain the situation and see what they tell you. I'd want to be very sure they weren't going to charge me an interest fee.

Ugh...I hate calling people.

I tried reading the fine print on the last statement about how they calculate interest charges, but there was nothing about credits in there. UGH. I can't really pay the "pay in full" amount either without dipping into savings which I do not want to do. Stupid holiday returns delays. Those items took 3 weeks to credit! They usually credit within a week (Zappos).

 

[AmyAnne]

I don't know, but I would call them and explain the situation and see what they tell you. I'd want to be very sure they weren't going to charge me an interest fee.

ETA: Better yet, get it in writing. If it's Chase, you can Secure Message them and be sure to keep the response.

And if it's not Chase, you still might be able to message them, or use the chat feature and save a transcript

 

[snowmanlover]

Our experience with Discover was, it must be "paid in full" or you will incure interest. Not that I think it matters, we pay by mail.

Lesson learned and I was not happy with DH! We always "pays in full".

 

[MomToOne]

I have auto pay setup to pay my balance in full every month on my due date. In this situation, they would only put through the autopay for $4450, not the $4850 amount.

Just make sure you have total payments + credits equal to your statement balance or more before your due date, or you will be charged interest. Even a penny is enough to trigger it.

 

[DLgal]

I have auto pay setup to pay my balance in full every month on my due date. In this situation, they would only put through the autopay for $4450, not the $4850 amount.

Just make sure you have total payments + credits equal to your statement balance or more before your due date, or you will be charged interest. Even a penny is enough to trigger it.

Good to know! This is a Chase card, for what that's worth. My payment amount is $20 more than it needs to be due to another credit that hit recently.

 

[ruadisneyfan2]

Okay, this is probably a stupid question, but I've never encountered this before.

I pay my credit card in full every month. My last statement amount was $4850. HOWEVER, $400 of that was some online shopping orders that I returned and were credited AFTER the statement closed. So, I need to set up my upcoming payment. When I go to make the payment, my options are "statement balance in full $4850", "minimum payment", or "other amount." I assumed that the credits would be taken into account when I went to input the payment and it would adjust it to the outstanding amount of $4450, but it didn't. I know my AMEX does that so that is what I assumed would happen on the payment screen.

So, if I make a $4450 payment, will my account be considered "paid in full" for that billing cycle, or will I get hit with interest charges if I don't pay the "statement balance in full $4850" amount?

If it’s a Chase card for sure you will have to pay the statement balance. I have called them twice for the same thing and got the same answer.
The only way to avoid paying out of pocket for items returned is to have the return credited to your account within the same billing cycle it was charged.
As a pp said, if you can send a secure message and get it in writing to the contrary you would be ok.

 

[MomToOne]

Good to know! This is a Chase card, for what that's worth. My payment amount is $20 more than it needs to be due to another credit that hit recently.

Because others are giving conflicting information, I verified this with a recent statement on one of my Chase accounts (even though I was already sure of my answer - but I thought an example would help)

My November statement balance was $10.61 (I don't use this card much). The statement was generated Nov. 20.

I had two small return credits of $1.35 each put thru on Nov 28th.

My autopay on 12/17 was only $7.91. I had no interest on my December 20th statement, just the balance for a few new small charges I had made.

Think about it this way: If you made a single purchase for $750 one month and had no other charges on your card, then the next month returned that item, negating the entire balance, the bank couldn't possibly expect you to still pay $750 and end up with a $750 credit on the card.

The payment has been covered, it doesn't matter how it gets there, just that it does.

(Disclaimer: once you are a day late or a penny short, this all goes out the window and "alternate math" applies. But this is how it works if your balance is covered in full by the payment date each and every month without fail.)

 

[DLgal]

Because others are giving conflicting information, I verified this with a recent statement on one of my Chase accounts (even though I was already sure of my answer - but I thought an example would help)

My November statement balance was $10.61 (I don't use this card much). The statement was generated Nov. 20.

I had two small return credits of $1.35 each put thru on Nov 28th.

My autopay on 12/17 was only $7.91. I had no interest on my December 20th statement, just the balance for a few new small charges I had made.

Think about it this way: If you made a single purchase for $750 one month and had no other charges on your card, then the next month returned that item, negating the entire balance, the bank couldn't possibly expect you to still pay $750 and end up with a $750 credit on the card.

The payment has been covered, it doesn't matter how it gets there, just that it does.

(Disclaimer: once you are a day late or a penny short, this all goes out the window and "alternate math" applies. But this is how it works if your balance is covered in full by the payment date each and every month without fail.)

Thank you. I actually haven't used this card since the statement was generated (it's not our main card, but we used it to make some one time large purchases and have some bills auto paid with it) and if I pay the "statement balance", it will actually be negative for a few days until some auto bills post. Your answer makes the most sense.

 

[DizMe]

Thank you. I actually haven't used this card since the statement was generated (it's not our main card, but we used it to make some one time large purchases and have some bills auto paid with it) and if I pay the "statement balance", it will actually be negative for a few days until some auto bills post. Your answer makes the most sense.

I would still send an SM and get the answer verified by Chase in writing.

*to do that: sign in to your account. Go to the 3-bar menu in the top left and click. On the drop down menu, click 'Connect with Chase' and choose Secure Message.

 

[ruadisneyfan2]

If it’s a Chase card for sure you will have to pay the statement balance. I have called them twice for the same thing and got the same answer.
The only way to avoid paying out of pocket for items returned is to have the return credited to your account within the same billing cycle it was charged.
As a pp said, if you can send a secure message and get it in writing to the contrary you would be ok.

I should clarify, if no other charges were made to the account, and paying the ‘statement balance’ would result in a credit balance, then you would only have to pay the account balance.

ETA: oops. I see this point was brought up

 

[tvguy]

You owe them $4,850 so that is what you have to pay that to avoid paying interest.
When the merchant credits the $400, then the credit card company will owe you $400.
They paid the merchant the $400 on your behalf, they haven't gotten it back yet if it isn't credited on your account.

 

[DLgal]

You owe them $4,850 so that is what you have to pay that to avoid paying interest.
When the merchant credits the $400, then the credit card company will owe you $400.
They paid the merchant the $400 on your behalf, they haven't gotten it back yet if it isn't credited on your account.

No, the credit posted two days after the statement was generated. So, on Dec 18, the statement was generated showing $4850 due. On Dec 20, the $400 credit was posted, and the outstanding balance was then $4450. I had two auto pay bills charged through since then, resulting in about $300 worth of new charges. My current outstanding balance is about $4750. The payment due date is Jan 15. Between now and then, I have a couple more auto bills that will post. So even though my current outstanding balance is only $4750, when I go to make a payment, they still default to the original $4850 that was due on the statement, which seems weird to me.

 

[Lvsdisney]

I don't think credit card companies like owing anybody money. They'd prefer not to have to write you a check for the $400 overpayment (which is what it'll be if that $400 return is showing as posted and your current balance reflects that). I would pay the current balance vs the statement balance. That's what I have done in the past with no interest charged.

ETA: I just where you have other charges scheduled. I would pay the full statement balance and then you just won't owe as much the next statement.

 

[disneedee]

i've paid the total balance before when it was less than the statement balance and been billed for interest. definitely think you should check with chase.

 

[tvguy]

No, the credit posted two days after the statement was generated. So, on Dec 18, the statement was generated showing $4850 due. On Dec 20, the $400 credit was posted, and the outstanding balance was then $4450. I had two auto pay bills charged through since then, resulting in about $300 worth of new charges. My current outstanding balance is about $4750. The payment due date is Jan 15. Between now and then, I have a couple more auto bills that will post. So even though my current outstanding balance is only $4750, when I go to make a payment, they still default to the original $4850 that was due on the statement, which seems weird to me.

Just call and check.

 

[runwad]

You can pay minus the credits. The statement balance is reflected on that pay screen because that is what the balance was when the statement was sent out. Look on the first page(home screen?), what does it say your balance is there? If nothing else has been charged it should say your current balance is the $4450. What does it say?

edit, I see you provided more info about recent charges. I still say you can pay the 4450 but I'd call or chat with them just to be sure. Seems like they will do whatever they can to screw you, so call! And then call again, because no one knows what the heck they are doing now a days so you just might get 2 different answers.ha Good luck!!

 

[ruadisneyfan2]

And please let us know what they say!

Both times I was in this situation, I had plenty of newer charges so that when the credit posted it simply reduced the amount due the next month.

 

[MomToOne]

From the Chase Auto Pay agreement:

AUTOPAY PROGRAM AUTHORIZATION FORM To complete your request for enrollment into the AutoPay program, please agree to the information below. To ensure proper withdrawal of your payment, please confirm you provided the proper routing and transit number from the bottom of your check on the Enroll Payment Account screen. We will notify you by email when your AutoPay is established. Until then, please continue to make payments on your account as you normally do. If you have any questions, please call us at the number on the back of your card.

Description of amounts to be withdrawn based on what you have chosen:

The FULL AMOUNT DUE, as shown on the monthly statement as New Balance.

Important information regarding payment option: The AutoPay amount will never be more than the New Balance. However, it may be less because payments, returned purchases, and other credits can reduce the AutoPay amount if they post to the account between the Closing Date and the date your payment is processed.

Full Amount Due example:
$1000.00 New Balance, due on 1/15/XX
- 100.00 Extra Payment 1/1/XX
- 100.00 Merchant Credit 1/1/XX
$800.00 AutoPay Amount 1/15/XX

Please carefully read the following and click on the Accept button to indicate that you have accepted the terms of the AutoPay agreement and have requested enrollment. Please enroll this card account in the AutoPay Program. I confirm that I am authorized to initiate transfers from the designated account and I authorize such transactions from that account each month, via automatic electronic withdrawal. I also understand that the amount of the payments may vary each month and that the monthly statement will be the only notice of the AutoPay amount to be deducted. If you wish to cancel Autopay, please call us anytime at the number on the back of your credit card or access your account online. Please print a copy of this agreement and keep it for your records.​

Autopay does not give you any special deal regarding whats due before interest kicks in, so the handling of these credits are the same whether you auto pay or manually pay. I just cite the auto pay agreement because that's the best text describing the handling of them that comes directly from Chase.