Eli5: what happens if I buy something on a credit card, pay the balance to zero from a checking account, but then return the item and get refunded? Where does the money go?

Question

Eli5: what happens if I buy something on a credit card, pay the balance to zero from a checking account, but then return the item and get refunded? Where does the money go?

In: Economics

Answer 1

Your credit card can go negative, which will just stay negative until you respend it (so, if you’re $100 negative, and use it to buy something for $100, you’ll be back to zero).

If you’re still negative on the next billing cycle or 30 days or whatever (this can vary on the bank), they’ll mail you a check for the negative balance