What happens when you get a refund to a credit card?

I’m expecting a refund from BA for some plane tickets to my Monzo flex. But I actually paid the balance off my credit card already so I’m wondering where will this £1000 refund go if the card is already at its limit?will it get refunded or will I not receive the money? Because surely if it gets refunded my credit limit will be 1000 £ higher?

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DataVenia

Volunteer Team, Clearing and Applications Advisor

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Original post by Amydesigns1104

I’m expecting a refund from BA for some plane tickets to my Monzo flex. But I actually paid the balance off my credit card already so I’m wondering where will this £1000 refund go if the card is already at its limit?will it get refunded or will I not receive the money? Because surely if it gets refunded my credit limit will be 1000 £ higher?

With a bank account, you can have a negative balance (normally called an overdraft) if you have taken more out from the account than you've paid in.

It's essentially the same with a credit card, but in reverse (because a positive number on a credit card statement shows how much you owe the bank). So you'll see a negative balance on you credit card statement, showing that Monzo owe you £1,000. You could then spend £1,000 on this credit card to make it return to zero. After that point it would return to normal.