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

Depends on your credit card company. They might keep it as a credit on your account and apply it to any future purchases, or they might send you a refund of the amount.

I got a check last week from Amex for $1.03 because I had a slight credit.