Do Cashback/Refund considered as a Payment in Credit Cards after Bill Generation?

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Deal Cadet
Deal_Freak

I am creating this topic that will be beneficial for all regarding refund or cashback considered as payment in credit cards or not. There are lot of confusions regarding this topic as some banks consider it as payment and some not. From my experience, i have noticed that HDFC Bank considers cashback or refund under credit card payment. I have tried this myself and never incurred any charges. On the other way, ICICI and SBI Banks do not consider refund or cashback as payment. Please share your experiences here.

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Deal Lieutenant Deal Lieutenant
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Want to know for BOB Credit Card?

Deal Cadet Deal Cadet
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rockingneo wrote:

Want to know for BOB Credit Card?

Yes. Please share your experience.

Deal Cadet Deal Cadet
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just keep your total dues zero at the end of due date including cashback,refunds & payments… money is money cashback or payment end of discussion

Deal Cadet Deal Cadet
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Bob_The_Builder wrote:

just keep your total dues zero at the end of due date including cashback,refunds & payments… money is money cashback or payment end of discussion

Try this method with any ICICI or SBI credit card and see the magic.

Deal Lieutenant Deal Lieutenant
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Deal_Freak wrote:

Try this method with any ICICI or SBI credit card and see the magic.


https://cdn0.desidime.com/attachments/photos/757837/medium/IMG_20220408_071218_513.jpg?1649395693

Deal Cadet Deal Cadet
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Deal_Freak wrote:

Try this method with any ICICI or SBI credit card and see the magic.

I’m using ICICI card since 2015 never faced any issues nor paid single rupee in fees..

Hunk Hunk
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Citi also considers refund as payments, atleast they adjust amounts without issues.

Let me share trick in case you get big amount refunds after statement generation. Many are already aware, but in case those who don’t know, make use of “minimum amount due”.

Lets say u make a purchase of 50k on April 8.
Then statement generates on April 10  (total due: 50k; min due: 2.5k; due date: April 28).
Now you get refund of 50k on April 15.

You definitely don’t want to pay 50k now, no matter which bank, so pay min amount due of 2.5k.

This will make bank software think that you did make a payment from your side  and total due is also paid off, so no late fees or interest charges. This works fine with majority of banks like Axis, ICICI, Citi, Kotak, HDFC, HSBC, IndusInd, Amex, Yes, etc.
I’ve recently got bob and idfc cards so yet to test this on them.

Now I know your cc has 2.5k excess payment, but trust me, that is still better than fighting with customer care to reverse those charges for most banks! 😅

Deal Cadet Deal Cadet
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Bob_The_Builder wrote:

I’m using ICICI card since 2015 never faced any issues nor paid single rupee in fees..

Bro clearly written from ICICI Bank that refund will not be considered as payment.


https://cdn0.desidime.com/attachments/photos/757910/original/Screen_Shot_2022-04-08_at_12.31.50_PM.png?1649402158



Critic Critic
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From my experience,
Citi, Amex and HSBC consider them as payments.
ICICI, Indusind, Axis does not consider them as payments.

Deal Cadet Deal Cadet
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Deal_Freak wrote:

Bro clearly written from ICICI Bank that refund will not be considered as payment.


https://cdn0.desidime.com/attachments/photos/757910/original/Screen_Shot_2022-04-08_at_12.31.50_PM.png?1649402158



don’t care what’s written I will never pay anything more than what is due anyways you keep paying extra use your credit card as prepaid card no one is stopping you … 👍

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Bob_The_Builder wrote:

don’t care what’s written I will never pay anything more than what is due anyways you keep paying extra use your credit card as prepaid card no one is stopping you … 👍

Okay will use my prepaid card with peace of mind. 👍🏼

Critic Critic
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No matter the refund or anything else, if a credit card bill is generated with non-zero amount then always pay at least min due amt mentioned in the bill.

Deal Cadet Deal Cadet
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guest_999 wrote:

No matter the refund or anything else, if a credit card bill is generated with non-zero amount then always pay at least min due amt mentioned in the bill.

By paying at least minimum amount due, the rest of the balance gets carried forward and interest is charged on that amount from the date of transaction.

Critic Critic
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Deal_Freak wrote:

By paying at least minimum amount due, the rest of the balance gets carried forward and interest is charged on that amount from the date of transaction.

It is the minimum to do, doing this ensures that your cibil score remains unaffected with no late payment entry reported. It gives you the time to communicate with bank to clarify the status of refund because in my opinion as long as you pay the min due amt then most likely any refund received after bill generation will be counted towards payment when combined with min due amt you have already paid. Most ppl who get late payment charge in such scenarios are ppl who didn’t pay even min due amt seeing the current outstanding in the card becomes zero after receiving the refund.

@rockingneo @panchabhut

Deal Cadet Deal Cadet
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After bill generation

Refund is not considered as payment for some banks
Always ask customer care
Else it will be troublesome

Deal Cadet Deal Cadet
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guest_999 wrote:

No matter the refund or anything else, if a credit card bill is generated with non-zero amount then always pay at least min due amt mentioned in the bill.

Well said. This is what should be followed

Deal Cadet Deal Cadet
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atx88 wrote:

Citi also considers refund as payments, atleast they adjust amounts without issues.

Let me share trick in case you get big amount refunds after statement generation. Many are already aware, but in case those who don’t know, make use of “minimum amount due”.

Lets say u make a purchase of 50k on April 8.
Then statement generates on April 10  (total due: 50k; min due: 2.5k; due date: April 28).
Now you get refund of 50k on April 15.

You definitely don’t want to pay 50k now, no matter which bank, so pay min amount due of 2.5k.

This will make bank software think that you did make a payment from your side  and total due is also paid off, so no late fees or interest charges. This works fine with majority of banks like Axis, ICICI, Citi, Kotak, HDFC, HSBC, IndusInd, Amex, Yes, etc.
I’ve recently got bob and idfc cards so yet to test this on them.

Now I know your cc has 2.5k excess payment, but trust me, that is still better than fighting with customer care to reverse those charges for most banks! 😅

Well said

Deal Cadet Deal Cadet
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Better take refunds before bill generation date. If u take refund after bill generation then do a minimum or full payment to avoid issues..

Deal Cadet Deal Cadet
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if credit card is utilized to its limit and then paid amount to card before bill generation,

1) can the card be utilized again ? 

2) if cancelled refund comes to card , will it be considered by IT dept? ( Had ordered 4l+ worth of electronics items for client but she changed mind so had to cancel order, so refund came back in account) 

Deal Cadet Deal Cadet
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amanhere2011608 wrote:

if credit card is utilized to its limit and then paid amount to card before bill generation,

1) can the card be utilized again ? 

2) if cancelled refund comes to card , will it be considered by IT dept? ( Had ordered 4l+ worth of electronics items for client but she changed mind so had to cancel order, so refund came back in account) 

RBI has made new set of rules regarding cashbacks/refunds. These will be considered as payments if credited before due date of payment.

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