What Happens if I Overpay my Credit Card? | Chase (2024)

FAQs

Can I get my money back if I overpay my credit card? ›

If you overpaid by a large amount, you might want to get the money back. The process of requesting a refund for overpayment varies by issuer, but you can typically complete it online. When the issuer receives your request, they have seven business days to send you the funds.

In most cases, an overpayment on your credit card isn't likely to cause any problems. However, if it results in a significant negative balance, you could trigger a fraud alert. A large negative balance can sometimes be a sign that someone is laundering money.

What to Do After Accidental Overpayment. If you've overpaid by a small amount, there's no need to fret. You can use the balance towards your next month's spending. However, if the credit remains untouched for six months, your credit card company is legally required to make an effort to return that money to you.

A positive balance on your credit card, also called a credit balance, is an overpayment or refund on your card. It's an amount that belongs to you, so it's the opposite of an amount you owe. Your next purchases will simply be deducted from the positive balance until your balance drops to $0.

An overpayment will not help boost your credit limit, not even temporarily. Your credit limit remains the same – you'll just have a negative balance that will be applied toward your next statement. Details like credit score and income are usually factored into a credit limit increase.

What happens if you have a negative balance? Ultimately, nothing really happens if you have a negative credit card balance. It doesn't hurt you. But still, you want to check in on your account regularly to make sure you don't wind up with a negative balance.

“Every single day your high-interest debt goes unpaid, it's costing you money — a LOT of money — in interest,” Krawcheck says. Instead of putting your extra cash toward an emergency fund, she suggests that focusing all of it on credit card debt first will save you more in the long run.

Q: What happens if I overpay on my Capital One credit card? A: If you try to overpay online, Capital One will not give you that option; however, if you have sent your payment in the form of a check, for instance, then the payment will be applied in full and you'll have a credit balance.

A Bank of America credit balance refund is a reimbursem*nt for paying more than the total balance owed on a Bank of America credit card. For example, a cardholder who has a balance of $500 but pays $600 can get a credit balance refund of the $100 that they overpaid.

If you can't pay your statement balance in full each month, Capital One suggests paying as much of the balance as possible. Paying even double the minimum amount can help significantly.

How to get rid of negative balance on credit card? ›

It's not often that you'll have a negative balance on your credit card, but don't fret if it happens. If you use the card for everyday purchases, you can get that money back simply by making purchases—the card issuer will cover them until you reach a $0 balance.

An employer can write to an employee to let them know about overpayments and to request the money. You'll need to check your employment contract to see whether overpayments are covered.

Once a refund has been made, it is permanent. The credit card or direct debit account will need to be charged again if the transaction was refunded by mistake. Re-processing the transaction will require the full credit card or account number.