Returning Purchases and Keeping Credit Card Rewards: What You Need to Know
Have you made a purchase and later returned it, wondering whether your credit card rewards will be affected? This article will guide you through the process, providing clarity on whether the rewards points or credit card cashback will be refunded to your account versus staying with you in your wallet system.
Understanding Return and Reward Policies
When you return a purchase, the refund typically goes back to your original payment method. In the case of credit card transactions, this usually means the reward points associated with that purchase will be returned to your credit card account. However, there are exceptions to this rule. Let's delve into the details.
Most Common Scenario - Points and Cashback Returns
In the majority of cases, if an amount is reversed to your account due to a returned purchase, the corresponding reward points will also be returned to your credit card account. This has been my personal experience with a few cards, and it has worked fine.
However, this process can sometimes be complex and require you to engage with both the vendor and your credit card issuer. You might need to prepare yourself for some back-and-forth communication. If the potential refund of rewards points has significant implications, it's wise to check the credit card issuer's policies beforehand or call them to confirm the process.
Less Common Scenario - Wallet Systems
For certain wallets, like those associated with airline miles, the reward points associated with a returned purchase might stay with you. This happens because the wallet system retains the points instead of sending them back to the credit card account.
Merchants who use their own wallets, like Amazon Pay or Klarna, don't always reverse the refund to the original wallet. This has been my experience with Amazon Pay. While I inquired about reversing the points, Amazon explained that this is not typically done. As a general rule, you should be aware that for these specific wallets, the points might not be reversed.
Handling Special Cases and Cancellation of Cards
If you try to spend the points after a return, you might find that the rewards points section shows a negative value, meaning new points accrued will first settle the points from the returned purchase.
Should you decide to close your card, you might be required to settle any remaining points according to their value. Always check with the credit card issuer for specific details.
Conclusion
The key takeaway is that reward points are generally returned when you return a purchase, but the specifics can vary. It's important to understand the policies of your credit card issuer and the vendor to ensure a smooth process. By taking the time to confirm the return policy and reward processing, you can avoid any surprises and fully leverage your credit card rewards.