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

Since you paid with a credit card, it gets refunded to your credit card and you end up with a negative balance. With a negative balance you can either request a check or you can use the credit card until you get over a $0 balance