Key Points
But what happens when you have to cancel the purchase and initiate a refund for an item that you have just bought using your credit card?.
As the refund is credited well ahead of the bill generation date, the refund will be adjusted against other debits before calculating the total amount due on your credit card for that month...
In such cases, the credit card customer can deduct the refund amount from the total outstanding bill and pay the rest while paying for the bill..
"Therefore, the refund amount received on November 04, 2023, shall be adjusted towards the total amount due (TAD) and accordingly the cardholder will be required to pay only the remaining outstanding (remaining outstanding = TAD refund amount)," the regulator said.. Scenario 3: Credit of refund/failed/reversed transaction for which payment has already been made..
Case II: If the cardholder does not provide consent or no response is received for adjustment of the refund, then the refund amount will be credited to the bank account of the cardholder in line with para 10(h), the central bank said.. "Further, if the cardholder makes a request for crediting the refund (a transaction for which payment has already been made), the same shall be credited back to the bank account of the cardholder irrespective of the cut-off defined under Para10(h)," the regulator added...
