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

You have a credit on your account which would reduce future bills. So rather than having a balance of, say, $200, you have a balance of -$20 (meaning $20 credit) so if you spent $150 then your balance due would only be $130.