Duplicate Credit Card Payments: When Refunds Are Due and How to Get Them
Have you ever made a credit card payment before the due date only to see your payment auto-debited again? Here's what you need to know about duplicate payments and how to get the refund you deserve.
Understanding Duplicate Payments
When you make a manual payment to your credit card bill before the due date, it's possible that the credit card company may still attempt an auto-debit after your payment. This can happen due to the company's system not recognizing your initial payment. If this has happened to you, you should be eligible for a refund of the duplicate payment.
Steps to Resolve Duplicate Payments
Check Payment Details: Make sure you have evidence that your payment was processed and that the auto-debit occurred afterward. Check your bank statement and payment confirmation emails to verify.
Contact Customer Service: Reach out to your credit card issuer's customer service as soon as possible. Provide them with details about both of your transactions. Be clear about the date and amount of your manual payment.
Request a Refund: Ask them to process a refund for the duplicate payment. Ensure they have the necessary information to verify the transactions. They may need to confirm your payment history and account details.
Follow Up: If you do not receive a refund within a reasonable time frame, follow up with customer service to check on the status of your request. Keep all correspondence for your records.
Most credit card companies will process refunds for duplicate payments, but the specific policies can vary. It's best to clarify directly with your issuer to understand their process and timelines.
Preventing Duplicate Payments
If you have a direct debit set up with your credit card company to automatically debit your account on the due date, and you plan to make a manual payment before that date, it's crucial to notify the credit card company at least 2 business days before the due date. This will help them stop the scheduled debit and prevent any confusion. Note that credit card systems are not designed to recognize that you may have already made a payment manually.
If there is another direct debit or manual payment made in the same period, and the company debits your account, you will need to request a refund of each duplicate payment. Refunds are not automatically reversed.
Proving Your Payment Was Made
If you have evidence that the payment was made at a bank counter on or before the due date, you can provide this to your credit card issuer. Certified copies of bank receipts, cashiers' stamps, and amounts paid can be used as evidence. Alternatively, confirmation from the bank statement via an electronic funds transfer can also be provided.
To gather more information, you can ask your bank for additional details such as the routing of the payment or an audit trail from the computer system that processed the payment. This trail should include details like the date, time, destination code, sort code, or IBAN of the destination bank, the recipient's name, and the account credited.
For payments made online, ensure that the destination account and sort code of the bank are accurate and not the same as the bank account where the payment is debited. The payment is taken from the bank giro credit, which is then allocated to the various credit card sub-accounts. Previously, these were posted manually, but now they are often done automatically.
What to Do if the Payment Is Misapplied
If you believe the payment was misapplied to the wrong account or bank, you should speak to both your bank and the credit card issuer. Check their records to see if there's any discrepancy, particularly if you have a popular name. These days, with electronic payments, there's no real excuse for misapplication.
If the account is not regularly used or is about to be closed, the money should be refunded by the card issuer. However, if the card or bank account is frequently used, the credit balance can be reduced by future transactions.
For online payments, ensure that the destination account and sort code of the bank are accurate and not the same as the bank account where the payment is debited. The payment is taken from the bank giro credit, allocated to the various credit card sub-accounts, and can be reclaimed via cheque or electronic transfer to your current checking account.