7.05.2013

Credit Card Overpayment

By Nora
What happens if I unintentionally make a Credit Card Overpayment?

Overpayment means paying more than the Outstanding Balance or Current Balance.

Basically, it's not a grave mistake if you overpay your credit card. The extra money paid is still yours. It will appear as a Credit in your account. You can use this Overpayment as reserve money to pay for the next month's bill. Or if you have nothing more to pay on the next bill, you can use this Overpayment as advance payment for future purchases.

Can I refund my Credit Card Overpayment?
It depends on your card issuer's policy.
Some like Metrobank and BDO do not refund overpayments.
Metrobank has its policy on Overpayments on their credit card statements. It says that overpayments will be used to pay for succeeding credit card purchases and charges.

Standard Chartered, on the other hand, allows the refund of an overpayment.  The credit card holder requests the bank in writing to refund the overpayment, as reflected in the card statement, and pays 500 pesos for refund processing.

Does overpayments earn interest?
No.

Why or how does unintentional overpayment happen?
Mostly it happens if you're paying your credit card through an automatic debit arrangement. Minsan nadodoble yong Debit.
It happens also when you're paying through Internet Banking, at marami kang pera sa bank account mo. Nag-aapura ka tapos nasobrahan mo ang pindot ng zero -- yong 1000 mo naging 10000.

If Overpayment is not my fault, and it's the fault of the card issuer, can I refund my Overpayment?
Yes, you can request for a refund in writing or via email. You can follow it up over the phone.

But in automatic debit arrangements where your bank is a different entity from your credit card issuer, it's your bank that will be at fault, and not your credit card issuer.

If my credit card does not allow the refund of overpayments, is there another way I can get my money?  I need cash badly.
You can consider making a Cash Advance. But bear in mind that there's a Cash Advance Fee, and that the interest for your cash advance starts accumulating from the day you make the Cash Advance.
Indeed, the card issuers are shrewd.

What's the usual Overpayment policy in the U.S.?
You can always request for a refund.
Banks are also mandated to report large Overpayments to federal agencies because Overpayments are also used by crime syndicates for money laundering.

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