CREDIT BALANCE REFUND - I didn't know such a thing can be possible | Credit card reward programs | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
CREDIT BALANCE REFUND - I didn't know such a thing can be possible
May 27, 2020
6:26 pm
Save2Retire@55
Member
Members
Forum Posts: 786
Member Since:
January 3, 2013
sp_UserOfflineSmall Offline

Hello All, Just sharing my experience with Rogers. I had a flight refund for around $3K to my original payment method which was Rogers MC. I sent Rogers a message using the online portal asking what my options are to get the money as it will take awhile to use it. Basically I am using TD Gold these days for their 10% promotional money back $.
To my surprise, Rogers asked for my bank information and that they will deposit the money directly to the bank account. (They already processed it yesterday so it will be couple days before I see the money).
Their other option was to send me a cheque for $20.
Well, I am happy with their efficient and fast way of handling this matter.

May 27, 2020
6:34 pm
lhsaid
Member
Members
Forum Posts: 72
Member Since:
May 22, 2015
sp_UserOfflineSmall Offline

I think all credit cards works same way. If you over pay your credit card bill, you can ask for refund if you like. Otherwise, the credit will go towards future expenses.

May 27, 2020
6:54 pm
GICinvestor
Member
Members
Forum Posts: 670
Member Since:
April 26, 2019
sp_UserOfflineSmall Offline

In the real real old days you could push for a cheque to clear out your credit balance. There must be some type of law that permits the user to ask for and receive a refund. Years ago my wife had a very small credit on her USA Macy’s card and at year end she automatically received a cheque. I don’t like the idea of giving them your banking information. Would it have been possible to do credit card cash withdrawals at an ATM to wind the credit down? I know my cards have that option but have absolutely noooo idea how do that.

Lol. Do they give you 18% interest on that amount if you leave it there?

May 27, 2020
8:27 pm
cruzinalong
Ontario
Member
Members
Forum Posts: 223
Member Since:
April 15, 2020
sp_UserOfflineSmall Offline

GICinvestor said
In the real real old days you could push for a cheque to clear out your credit balance. There must be some type of law that permits the user to ask for and receive a refund. Years ago my wife had a very small credit on her USA Macy’s card and at year end she automatically received a cheque. I don’t like the idea of giving them your banking information. Would it have been possible to do credit card cash withdrawals at an ATM to wind the credit down? I know my cards have that option but have absolutely noooo idea how do that.

Lol. Do they give you 18% interest on that amount if you leave it there?  

They give you no interest. Once I overpaid my credit card deliberately. I was going away for a while and would not have time to find my balance owing. When I returned I found they returned the surplus to my bank account. I found a rule that if balance is a credit they must return the credit to the customer automatically.

May 27, 2020
8:30 pm
Loonie
Member
Members
Forum Posts: 6847
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

A few years ago I received 2 cheques in the mail as refunds for credit balances. I think it was The Bay's MC but not sure. I did not request it and was surprised when the first one arrived.

I could be wrong but I think they said something about them not being permitted to hold onto money for more than X amount of time - I think 3 months - as they were not legally allowed to hold deposits.
My memory could be a bit faulty or rules could have changed, but it's not that long ago and I am certain about not soliciting the cheques. The amounts were in the 3 figure range. In one case at least, it was due to after-Christmas returns.

May 27, 2020
8:35 pm
cruzinalong
Ontario
Member
Members
Forum Posts: 223
Member Since:
April 15, 2020
sp_UserOfflineSmall Offline

GICinvestor said
In the real real old days you could push for a cheque to clear out your credit balance. There must be some type of law that permits the user to ask for and receive a refund. Years ago my wife had a very small credit on her USA Macy’s card and at year end she automatically received a cheque. I don’t like the idea of giving them your banking information. Would it have been possible to do credit card cash withdrawals at an ATM to wind the credit down? I know my cards have that option but have absolutely noooo idea how do that.

Lol. Do they give you 18% interest on that amount if you leave it there?  

They would charge a fee for cash advance. At one time there was no cash advance fee. I used to get a cash advance at teller. Pay it back in short time. Say 1-2 weeks. Pay a small amount of interest for the short time frame. Once I took out a cash advance. I paid it back later the same day. There was a $3.00 fee for the cash advance.

May 27, 2020
9:57 pm
Save2Retire@55
Member
Members
Forum Posts: 786
Member Since:
January 3, 2013
sp_UserOfflineSmall Offline

I over paid my MBNA MC by about $350 early Jan. The money is still there. I didn't receive any automatic refund nor a cheque. Maybe I should ask them.

July 19, 2020
7:31 am
b33i
Member
Members
Forum Posts: 3
Member Since:
June 22, 2020
sp_UserOfflineSmall Offline

What happens to the refund balance for lets say you close the credit card? Can you request a refund on a different card perhaps?

July 19, 2020
11:25 am
Norman1
Member
Members
Forum Posts: 3801
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Save2Retire@55 said
I over paid my MBNA MC by about $350 early Jan. The money is still there. I didn't receive any automatic refund nor a cheque. Maybe I should ask them.

I don't think credit card issuers will refund a positive balance immediately. The situation could be temporary.

Some purchases were returned and the returns will be offset by purchases the following month. Someone overpaid on purpose because he or she would be still on vacation when the next payment is due.

I think it would be easier if one charged purchases to the card to spend the overpayment.

July 19, 2020
12:50 pm
Vatox
Member
Members
Forum Posts: 827
Member Since:
October 29, 2017
sp_UserOfflineSmall Offline

A different perspective on this issue, I sometimes deliberately add funds to my CC, since my CC and banking accounts are all with the same FI. This effectively increases the credit limit. This way I can purchase something beyond my credit limit or beyond the remaining limit.

December 13, 2020
3:57 pm
Loonie
Member
Members
Forum Posts: 6847
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

I just had a negative experience with Canadian Tire MC re: refunds, so thought I would report in as a warning to others.

My stepfather was primary account holder on a Canadian Tire MC, with his wife as secondary. After he died 3 years ago, she wanted to keep the card and negotiated with them to continue the account in her name - or so she thought. They required that she submit an original death certificate, which we did at a CT store. They kept the death certificate. She got an account in her name and told me they had transferred his reward points to her as requested. So I thought all was well. Now, I am wondering if they really did transfer those points.

More recently, as her health has deteriorated, we have been going through her accounts and discovered that there was an outstanding credit on his old CT MC of well over $1000. (This is a separate issue from rewards points.)

When contacted, CT MC agreed that this amount was still outstanding, and they agreed to send a cheque payable to his estate, which they did. This was a nuisance to cash as there was never a need for probate and thus no estate account, and the lawyer was no longer being helpful. However, we have finally been able to cash it, so that is done with.

The thing is, why didn't they send out the cheque automatically when they received the death certificate and closed his account if they weren't going to transfer it to her? They had no business hanging on to that money indefinitely as they clearly intended to do, although I think it would have been a perpetual liability on their books, but that might not stop them from using it to try to make more money.

I think auditors should pick up things like this but apparently they don't.
I'm not impressed. Beware!

December 13, 2020
6:52 pm
Save2Retire@55
Member
Members
Forum Posts: 786
Member Since:
January 3, 2013
sp_UserOfflineSmall Offline

Loonie - That is such a shame! This happened to me when Amazon shut down their Visa card. I never received anything until I called in and asking for a cheque (It was less than $10 but still their job). One thing all these stuff are automated nowadays and happen without human interruption. Financial and Insurance institutions don't surprise me anymore. Seems we all need to have a financial expert (Not a greedy lawyer) in the family taking care of whatever left after our death. I am trying to teach my kids everything I know to make that happen!

And thanks for reporting this. Stay safe and healthy.

December 13, 2020
8:44 pm
Loonie
Member
Members
Forum Posts: 6847
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

Yes, insurance companies are part of the issue too.

One of us had a Disability policy that expired at age 65. The insurance company kept auto-billing and deducting for several months before we got around to complaining. Fortunately, I had it marked on my calendar as to when the expense would end, so I was watching for it. I imagine there are people who never notice, and executors who don't know these policies have an expiry date.

They refunded all the money quickly, but we shouldn't have had to push them. How hard is it for an INSURANCE company, with legions of actuaries, who are obsessed with statistical data about their customers, to keep track of people's ages? Apparently very hard!sf-surprised Give me a break.

Your kids are going to get sick of listening to you, I fear. There is a lot to learn! Hopefully it will all come back to them when they need to know.

December 13, 2020
9:49 pm
RetirEd
Member
Members
Forum Posts: 96
Member Since:
November 18, 2017
sp_UserOfflineSmall Offline

American Express included a provision in a recent T&C update that lets them charge a FEE for unused credit balances over a certain period of time - a year, I think. Nervy, eh?

So it doesn't look like there's any statutory or policy need for them to return cash balances at any time.

The phone agent I queried about this at the time never convinced me I understood the policy or the need for it. Anyone know more?

I note that they now forbid advance payments on installment plans, which I'd never use anyway... any extra payments simply become credit balances unless the entire installment plan is revoked, in which case the interest advantage is lost.
RetirEd

ADDED: I just checked with them. The details are that:
-Once a year
-If there has been no activity on the account (charges or payments) for 12 months
-if there is a static credit balance

There will be a $10 deduction from that balance. If the balance is less than $10, the deduction will simply be the balance.

December 14, 2020
1:23 am
Loonie
Member
Members
Forum Posts: 6847
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

Sounds like a version of "negative interest".

Amex should think a little harder about all the many places their cards are not accepted before they start dinging people. And about the reason they are not accepted, which, as I understand it, is primarily because the commissions are out of line.
But, then, I've never had an Amex card, and don't want one.

December 14, 2020
3:41 am
topgun
Member
Members
Forum Posts: 324
Member Since:
September 6, 2020
sp_UserOfflineSmall Offline

I tried AMEX Airmiles in 2001 after decades of using MC or VISA. I realized it was not accepted EVERYWHERE. I stopped using it for this reason. Nice to have just one CC to keep track of monthly expenses.

Have a Great Day

December 14, 2020
3:56 pm
Save2Retire@55
Member
Members
Forum Posts: 786
Member Since:
January 3, 2013
sp_UserOfflineSmall Offline

I got AMEX Gold twice. Once directly from Amex and once from Scotia. Both times, it was for a sole purpose of the offer. One was 35000 Aeroplan Miles. The other $300. I couldn't even spend enough to be eligible for the offer as it isn't accepted anywhere. Luckily it was accepted in Walmart so I bought Walmart Gift Cards which took me a year to spend but hey nothing wrong with it. And the cards were both cancelled before the renewal (First year was waived fee).

Loonie - I give the kids slowly but yes sometimes I even confuse myself when explaining things. Their last question yesterday while we were driving and they look at store signs, what does Cash Money do? And they ended up saying, it is so stupid to take money from this store!

WOW for the insurance company! Another thing that should have been automated. Reach the age! Cancel the policy and don't take money! But I am sure they have made millions by doing so without people noticing then passing away.

December 14, 2020
4:39 pm
topgun
Member
Members
Forum Posts: 324
Member Since:
September 6, 2020
sp_UserOfflineSmall Offline

Years ago I tested several AMEX and CIBC cards. I collected Aeroplan points. I tested them if the annual fee was waived for 12 months. They gave huge number of bonus Aeroplan points just to signup. Not sure the details now. I got enough points to fly to Nashville (i.e. 25,000 points), Las Vegas (i.e. 25,000 points), Salt Lake City (i.e. do not remember) and London , England (i.e. 60,000 points). I never renewed any of the cards. Some of the cards I used to spend $2,000 to $5,000 to get the bonus points. Not sure the details now. Then cancel card. The CIBC Aeroplan Infinite card I used for a full year. I needed 60,000 points to fly to London. After that trip I cancelled since I realized 1 point for each $1 spent was not a good deal to pay $120 annual fee. A friend said I made good use of my points. I made these 4 flights over a period of 4 years. I did not spend $135,000 or so dollars to collect so many points. Currently have CIBC Platinum Visa. I think it was 10% for first $2,000 spend. Stopped using months ago. I will cancel after getting cashback on my December statement. Nothing wrong with CIBC no fee cards. None are worth a $99 annual fee IMHO. Having fun.

Have a Great Day

December 14, 2020
4:57 pm
Winnie
Ontario
Member
Members
Forum Posts: 333
Member Since:
December 7, 2011
sp_UserOfflineSmall Offline

Capital One MC will automatically send you a cheque for any credit balance (overpayment, refunds, etc), if you will allow that credit balance to stay there for more than 1 billing statement.

They don't allow 2 consecutive statements with "minus" balances, regardless the amount.
A cheque will be mailed to you automatically and balance will be adjusted to "0" on the second statement, very simple and straight forward, no exceptions (I asked).

December 14, 2020
5:08 pm
topgun
Member
Members
Forum Posts: 324
Member Since:
September 6, 2020
sp_UserOfflineSmall Offline

Winnie said
Capital One MC will automatically send you a cheque for any credit balance (overpayment, refunds, etc), if you will allow that credit balance to stay there for more than 1 billing statement.

They don't allow 2 consecutive statements with "minus" balances, regardless the amount.
A cheque will be mailed to you automatically and balance will be adjusted to "0" on the second statement, very simple and straight forward, no exceptions (I asked).  

Thank you for this response. I remember once paying them extra (i.e. $1,000). I was irritated when they sent me a check for hundreds of dollars. I wanted a negative balance since I was going to be away. I did not know how much I was going to spend. Now I have pre-authorized debit. Capital One is a very good FI for MC.

Have a Great Day

No permission to create posts

Please write your comments in the forum.