Credit Card Refunds – When and How to Ask for Your Money Back

Im sure most people have dealt at least once with unsatisfactory service. Quality complaints, products not up to standards or not what you wouldve expected. And, in the good American fashion, what did you do? You disputed the charges with the credit card company/bank, being almost sure that you wont be charged anything right? Well, it might not have been the best decision. And heres why:

The money back guarantee condition only applies if you are indeed eligible to get the money back. If you just had a change of heart and decided you dont want the product you just bought, chances are you wont see a penny if the company that you bought it from and from where you request the money back now decides to dispute the case.

In this case, itll be almost as if youre going to court with that company: your bank and the company will present their arguments before a chargeback committee which will decide on whose side the truth lies. And if they rule in favor of the company, not only you will not get the money back, but youll also pay a chargeback fee So the entire thing might end up costing you more than expected. So heres my advice:

Dont just go and dispute just about any charges you dont like anymore Some people do this thinking they can get the money back AND keep whatever product they have purchased. You might be in a lot more trouble then youd expect and its just not worth it. First off, when you buy something, especially over the internet, read carefully the Terms & Conditions of the website. I know, it sounds boring and its a lot of legal stuff you dont really want to know, but it could prove important should you not be satisfied with your purchase.

If, for whatever reason, you dont want the product/service anymore, contact the company you got it from. Get in touch via email, phone, regular mail or other means, but talk with them and hear what they have to say. You might get a better deal than just your money back. If the company has a no refund policy written in their T&C, this doesnt mean its written in stone. Exceptions can be made if there is no other way.

Of course, if all else fails, go talk with your bank. They can advise you regarding the next steps you can take to solve the problem. But if you follow the instructions above, you shouldnt get there. Or if you do, you have great chances of getting your money back.

With all the spending you do on a weekly basis, wouldnt it be great to get some of that cash back at the end of the year? With credit card rebates, you can do just that. Rebate credit cards offer you a percentage of your money back. So when you spend with your credit card you can be earning money. This is a great way to add to your end of year savings or to earn a little extra money for holiday shopping expenses.

How Rebate Credit Cards Work

When you sign up for a rebate credit card, you are agreeing to use the card according to the credit card agreement. While all agreements are different, the rebate credit card agreement will detail how much you have to spend to earn money on your purchases.

Most cards offer up to five percent cash back on your purchases. So check for the details in the contract. You may earn different amounts at different places. For example, some cards offer five percent cash back rebate when you use your rebate credit card at a grocery store, gas station, or drugstore. These daily purchases add up quickly and it is easy to earn rebates this way.

However, your purchases at other stores may only earn you one percent of your purchase price in rebates.

Restrictions

Again, many cards only offer their premium percentage rates on purchases made at specific locations. In addition, there may be a limit on how much your can earn. Credit card rebates may be limited to three hundred dollars or less in one year. Once you hit this limit in rebates, you will no longer be earning cash back when you use your card.

You may also have to pay an annual fee to use the card. Weigh the cost of this against how much you think you will actually earn back in credit card rebates to see if it is worth it. If you pay a fee that is over fifty dollars and you only think you can earn seventy-five dollars in rebates, the card may not be worth your time.

Keep in mind that the interest rate also plays a part in how much money you get back. It is very important to always pay your rebate credit card bill in full each month. If you dont, you will earn interest on the balance and pay the company much more than you get back at the end of the year.

Keeping Track of Rebates

Be sure that you keep track of your spending with these credit cards. Most companies offer an online service to let you see how much you have spent and how much you have earned. Take advantage of this service and stay on top of your monthly bills.

Tips to Earning More

Again, if your card offers a higher rate for spending at supermarkets, drugstores, or gas stations, use your card there primarily. You can also get the higher rate most of the time for purchasing merchant gift cards at the supermarket. So if you want to purchase something at a department store, buy a gift card at the supermarket to earn your higher rate and then shop with the gift card.

Credit Card Payment Strategies: Beat Credit Card Debt Nightmares That Keep People Awake At Night

If you are struggling to afford just the minimum payments on your credit cards, you are not alone. A large percentage of the people you pass on the street each day are suffering under the weight of the exact same stress. They are also concerned about upcoming (or past) due dates and an ever-increasing credit card debt balance.

You don’t have to continue to lose sleep worrying about your debts, but you do need to take actiontoday. Little by little, one-step at a time; you can change your credit situation from an ongoing nightmare to a bad dream of the past.

Scrutinize Your Expenses

Hard as it may be to face, until your credit card debt is paid down to a manageable level, you will need to start living frugally. Start by keeping a daily expense log, detailing everything from your morning coffee to the monthly electric bill. Then go through this list, line-by-line, and determine which expenses can be eliminated and which can at least be decreased.

Look for New Money

Consider taking a second job, tutoring on weekends, or baby-sitting. Look around your home for clothes, furniture, or other items that you can sell, either in the classifieds or online at sites like Ebay. Return unnecessary recent purchases for credit back to your card.

Stop Using Your Cards

It is nearly impossible to significantly lower your debt if you keep adding onto it each month. At the very least, take all specialty and department store cards out of your wallet and store them in a safe place (or cut them up entirely). Before you charge anything to a card from now on, ask yourself if it’s really necessary, and if there’s any way to either not make that purchase or to delay it until you have enough funds to cover the cost.

Pay Off Your Highest Interest Rate Cards First

After you’ve pared down every possible expense, sold what you could, and sought out new sources of income, determine how much you have left at the end of the month in excess of all your minimum payments. Then apply all of the excess funds to the card with the highest interest rate, and continue to do that until that card is paid off. Start the process again with the second-highest rate card, and so on. This will pay off your debt the fastest.

Call and Ask

If you need to send a payment in late, call and let your credit card company know. Customers who communicate honestly receive better treatment. It never hurts to call and ask if your interest rate could be lowered; even half of a percentage point can make a big difference for someone living month-to-month.

Your credit card company may also have some sort of hardship program in place for customers who are temporarily unemployed or who are dealing with a serious illness. If you think you may have a hardship case, again, call and talk to someone. You may qualify for a lower interest rate or a few months of grace.

If you have a credit card (most Americans have over 10) then you’ve probably received an offer called a “payment holiday”. You’ll receive a letter that says something to the effect, “That because XYZ Credit Card Company understands how difficult it is for some families around this time of year to make ends meet (or whatever other excuse they can come up with) that you are being given the opportunity to take a month off from making your monthly payment as a ’special gift’ and thank you for being such a valuable customer.”

Sounds Good on the Surface but Why Are They Doing It?
Typically, payment holiday offers have a high acceptance rate. A high percentage of individuals feel it’s a wonderful thing to be able to take a month off from the stress of having to make another payment. However, what they don’t usually realize is that these so-called “holidays” really aren’t a gift at all. They are simply are way to increase profits for the credit card companies.

It’s a Win-Win For the Credit Card Companies
Hmm… So how can letting me skip a payment earn them more money? Well, here’s where the slight of hand comes in. If you read the small print in any credit card agreement you’ll quickly realize that the payment holiday isn’t interest free. You are still being charged interest and because you’re not paying anything back for a particular month that interest will be there next month for you to pay compounded interest on or interest upon interest.

Here’s an example that hopefully with help clarify the principal I’m trying to convey. Let’s say you were paying back $1000 of debt at 1.5% per month (or about 19.5% per year) with a minimum payment each month of 2% (or about 26.82% per year).

If you made the minimum payment for all 12 months, you would have paid back $233.51 and you would still owe $941.62 at the end of the year. Your debt has been reduced by $58.38 and you’ve lost $175.13 in interest.

However, if you were to take a payment holiday you would pay 2% per month for only 11 months or (24.3% on your debt) or $217.80 and you would still owe $960.55 at the end of the year. You end up paying about $38 for the privilege of not making a single payment of about $20 (2% of $1,000). In other words, your month off cost you almost two months of payments.

Don’t worry if you don’t understand all the math – it’s suppose to be confusing. In fact, it was specially designed by mathematicians and marketers to be as confusing as possible to keep you from being able to figure out what a bad deal you’re getting. Case in point, if you hadn’t read this article would you have thought twice about turning down the next “payment holiday” offer you receive? And remember… don’t fall for it because the more you owe, the more that “holiday” will cost you. Instead, you should consider doing everything you can to pay off all your debt as quickly as possible.

If It Sounds Too Good
The old saying, “if it sounds to good to be true then it probably is” certainly applies here and remember that no-one ever gives away anything of value for free, that is with no strings attached – especially the credit card companies. Anytime they offer you anything, it’s because they are going to make a profit and if you can’t see how they benefit, be suspicious because it’s probably just the next slight of hand trick to come down the pipe that is being used to quietly milk you out of a little more interest.

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Executives at Debt Shield, Inc., a Maryland-based debt settlement firm, said that the increased minimum monthly payments on credit card balances will most likely not double, as it is widely reported, but that the increase might push financially struggling cardholders into bankruptcy or bankruptcy alternatives, like debt settlement.

While credit industry experts and the media claim that credit card companies are doubling their minimum monthly payments from 2% of the outstanding balance to 4%, the actual minimum payment increase is more complicated and less drastic for most cardholders, explains Mark Baylis, President of Debt Shield. The new rules require credit card banks to set their minimum payments to cover all interest and fees plus 1% of the outstanding balance, which will result in significant increases for high-interest accounts.

Baylis said that a cardholder with $10,000 on a credit card at 18% Annual Percentage Rate (1.5% monthly) pays $200 under the 2% minimum requirement. Out of that $200 payment, $150 (1.5%) goes towards interest and only $50 (0.5%) goes towards the outstanding balance. Under the new rule, the minimum payment will increase so that the amount applied to the outstanding balance in this example is at least $100 (1%), so the minimum monthly payment must increase by $50 (0.5%) to $250 (2.5%).

The average APR is currently just under 14% (1.17% monthly), but credit card companies increase the APR to 27% or higher if the cardholder makes one late payment. This means that the reality of the new rule will punish low- to medium-income families struggling with credit card debt more than high-income families who are able to avoid paying late. Baylis said that even a small increase can have drastic consequences for families struggling to make the existing payments and manage inflation combined with stagnating income.

The MMP on a credit card debt with the above-average 18% APR will increase by $50 while the same $10,000 debt with a 27% penalty APR will increase by $75. Also, the 27% APR charges $75 more in monthly interest than the 18% APR. Baylis said that this clearly demonstrates the financially destructive power of high interest rates.

The increased minimums will be good in the long term because it should encourage less debt, Baylis continued. But if the credit card companies want to help consumers, they need to stop punishing cardholders with outrageously high interest rates.

About Debt Shield, Inc.

Debt Shield, Inc., is a debt settlement company dedicated to helping consumers resolve their unsecured debt through mutually agreeable and discounted lump sum settlements in consideration of legitimate financial hardships. By helping consumers avoid bankruptcy, Debt Shield provides a service for both debtors and creditors. For more information about Debt Shield, call 1-888-397-7546 or visit the website at www.debtshield.com.