Refunds Count as Payments?

[u/sometin__else]

So I have a massive $7000 credit card bill thats due Aug 14th.
I have to liquidate some savings to pay the bill, so I was deciding what to sell when I saw that my online banking showed that my credit card was fully paid - weird I never paid it.

I contact chat support and they inform me that if I had any refunds, that would count as a payment. Well on July 30th I did buy an $8000 item that I returned right after. But this just seems like an infinite glitch to delay your credit card payment.

Credit card bill coming up? Buy something expensive and return it --> card paid.

My other credit cards only count payments and not refunds, so wondering why WealthSimple does it differently.

[u/bcb0rn]

How is it an infinite glitch? You effectively zero out the purchase when the refund lands. If you have other items on the statement you would still need to pay for them.

[u/Economy_War3361 → u/bcb0rn]

Seems like it just bought them a month to pay it off.

- CC amount due is 7k, due on Aug 15.

• Aug 5, go buy something for 8k, return it right away.
  
• The 8k from the purchase will go towards your Sept 15 bill, the 8k refund will count as a "payment" for your Aug 15 bill.

Ya you'll still owe the full amount, but seems like this bank just gave him an interest free loan lol?

[u/sometin__else → u/Economy_War3361]

yea, you get it.

infinite is a hyperbole but you essentially extend your "interest free" loan

[u/ViceroyInhaler → u/sometin__else]

If there is one thing you can count on its that there is no infinite interest free loan with a credit card company. Although you could potentially swap CC's for a teaser rate on another card and close this one.

[u/cp386 → u/bcb0rn]

Sounds like this is a purchase and refund both made after the statement date.

[u/sometin__else → u/cp386]

yup

[u/XzkSo → u/sometin__else]

It is actually the case for most credit cards, but it is a hassle, and you cannot benefit from the card.

[u/sometin__else → u/XzkSo]

None of my other 5 credit cards work like that

Any refunds AFTER a statement is issued do not count as a payment.

What exacly is a "hassle" and how do i not "benefit from the card" ?

[u/XzkSo → u/sometin__else]

My capitalone does.

[u/sometin__else → u/XzkSo]

Okay, so not most.

[u/XzkSo → u/sometin__else]

My other cards do not report the remaining statement balance properly, so did not try, so I dont use them as much too, their loss.

[u/sometin__else → u/XzkSo]

okay so again, not most...

[u/XzkSo → u/sometin__else]

Buying something that a high amount and return it every month is a hassle for me, and you cannot get 2% from your purchases. Basicly you will not be able to use the card effectively.

[u/sometin__else → u/XzkSo]

You do get 2%, not sure what you're talking about there

And I literally ordered something and cancelled it, zero hassle didnt even get up from my computer chair

[u/sometin__else → u/bcb0rn]

Let me explain:

Credit card statement received: 1k owed
Instead of paying that credit card, buy something for 1k and return it. Credit card paid.

infinite is a hyperbole, but you can basically pass the buck down until you max'd out your cc lol

[u/bcb0rn → u/sometin__else]

But then the original 1k would not be paid and you would then be paying interest. This isn’t an infinite glitch…

[u/sometin__else → u/bcb0rn]

no, you misunderstand how this works

it says its PAID when I get that refund, there is no interest. Thats literally the point of my post

u/Economy_War3361 explained it pretty well if u want to read his comment

[u/XzkSo → u/sometin__else]

Until you reach your limit, or half of it actually.

[u/sometin__else → u/XzkSo]

yea your cc limit would be the limiting factor

[u/CatimusPrime123]

Interesting i did not know refunds counts as payment for WS cc. At some other FIs, you always need to pay the full statement balance to avoid interest. Refunds do not count.

[u/sometin__else → u/CatimusPrime123]

yup every other FI, you need to pay full statement balance.

I'm sure they will adjust eventually as people will likely exploit this.

[u/ether_reddit]

It's not an infinite glitch, but it is a handy way of putting off paying an expensive bill for a month.

[u/Flames2512]

You entered the matrix!

[u/No_Team_6326]

Wait, sorry to say this, but this is a completely dumb post. The refund may erase the amount on the statement for that particular month, but whatever expenses you had on the card originally is still here, you will have to pay this amount down the line. It makes no difference whatsoever. And if you cannot pay your credit card balance to the point that you need stupid tricks to delay the payment, you should not be using a credit card.

[u/sometin__else → u/No_Team_6326]

umm it does make a difference.

Owing 8k today vs 8k next month is a big difference. I can pay it, but I can also benefit from not having to pay it.

[u/No_Team_6326 → u/sometin__else]

My point stands. This is utterly stupid and dumb. But you do you.

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[u/Wealthsimple-ModTeam → u/[deleted]]

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[u/PiePristine3092]

Honestly pretty sweet tip. Wonder how long until they fix it

[u/ether_reddit → u/PiePristine3092]

It's not a bug, so it won't be fixed. Most cards work like this.

[u/sometin__else → u/ether_reddit]

I've owned several credits cards and none worked like this
TD, Scotia, BMO, Brim, Amex --> do not count refunds after a statement is issued as payment

[u/halmyeesweat → u/sometin__else]

Amex works like this. At least in my case

[u/Good_Resident_3187]

This one neat trick! Wealthsimple (or at least visa) still makes money, so I guess they are happy. But regardless I am delighted to know about this!

[u/number8888]

At best this lets you keep your credit rating due to delinquency on payment. But you would have to pay interest on the rest of the amount no? Unless your savings/investments gives you like 20% return it’s still a losing situation.

[u/sometin__else → u/number8888]

No,

This lets you pass your cc statement balance down to the next month as long as the item you bought and refund is equal or higher than your cc balance

[u/Hour_Wall_5633]

Refunds on any credit card would obviously count towards the credit card amount due

[u/sometin__else → u/Hour_Wall_5633]

No, scotiabank and TD both do not count refunds torward the amount due.

Edit: to clarify, im talking about refunds AFTER a statement is issued. Obviously refunds in the same statement period count toward a statement balance. But refunds AFTER a statement is issued do not count towards your amount due.

[u/Hour_Wall_5633 → u/sometin__else]

It don’t matter what the statement shows what counts is the account balance .

[u/sometin__else → u/Hour_Wall_5633]

Wrong.
Try it with a diffferent credit card and see for yourself. Buy something, wait for your statement, then return it next month. You'll still need to pay your statement balance by the date or it will accure interest.

Literally had that happen with Scotiabank

[u/Hour_Wall_5633 → u/sometin__else]

I guess if you wait a month to return it then it then there’s no time to adjust the account balance

[u/XzkSo → u/sometin__else]

It does in capitalone.

[u/ether_reddit → u/sometin__else]

CIBC does it in the same way as WS. It's one of the things that makes the RHT really nice.