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 wind up with a negative balance on your credit card.

No, the credit card company doesn’t pay you interest on it.

They’ll offset that credit against other purchases or if you don’t use it, eventually send you a check.