Overpay Credit Card – What To Do when it Happens?

What happens if you Overpay your Credit Card Bill? Every month you’ll get a bill for the balance of your credit card. Literally, you’ll want to pay the bill in full, but some people have paid less than the full amount. However, it is possible to do the other way round, paying more than the full amount due, resulting in a negative credit card account balance.

Overpay Credit Card

How To Overpay Your Credit Card

There are a few ways one can likely Overpay Credit card bills, though some are not personal faults.

  • Additional Payments on top of automatic Payment –this is a possible medium that one may have to Overpay Credit card bills. Making Manual payment after the automatic payment has been set up. Most card issuers offer the option to set up autopay for your Monty bill. This is a great feature that relieves the stress of remembering your bill due dates. With this feature, you will never pay a late payment fee when autopay is turned on since the Credit card company will withdraw the money from your bank account directly.
  • Manual Payment – entering Payment amounts manually is one of the commonest ways of overpaying a credit card bill. Every card issuer that has an online payment system always gives options on the amount you want to pay. This option is for the full amount, the minimum balance, or a custom amount. Usually, you use the custom amount option whenever you want to make a payment that is more than the minimum but less than the full balance

If you key in the amount you’d like to pay incorrectly, whether it be by adding an extra digit or swapping, you can pay more than you owe. Many credit card companies limit one to paying not less than the full balance, but some do not set limitations, you can Overpay. If this happens, you’ll end up paying more than you owe them.

  • Refunds and credits – this is getting an Overpay by getting a refund on purchases within the month. For instance, you buy a new vacuum set from a store. It works great and normally, and your credit card bill comes at the end of the month, and you make a payment right away. A few days later, the Vacuum breaks. You returned it to the store and ask for a refund. The store gives you a refund by crediting your card. In this case, you end up with an overpaid credit card, even though you paid the exact amount you owe at the time. Or this similar event can occur with a credit offered as a benefit by your credit card. For example, a travel rewards credit card might provide statement credits toward incidental airline fees.

What Happens when you Overpay your Credit Card

If you overpay your Credit card your account will show negative. This means that the card company owes you money rather than you owing them.

Overpaying a credit card is not the worst mistake, but on the other end, it’s still good. At least you’re not owing to the Credit card company, they are the ones owing you. Every dollar that is in the Credit card issuer’s account instead of yours is giving them earnings, and interest instead of you. Besides, the money is tied up and relatively, you can’t access the fund. If you have needs to pay bills and you have a lot of money tied up in overpaid credit card balances, you might end in financial trouble even if you would have been able to pay the bills

How To Handle an Overpaid Credit Card

Here are a few options to fix the situation of overpaying

  • Keep spend –continue using the Credit card despite the overpayment. All your future purchases will be applied towards the negative balance built up. Once you’ve hit the point where you are owing, you can continue making payments as usual.
  • Ask for a check –most credit card issuers will be happy to refund back the money you overpaid amount by check. All you need to do is to contact the issuer by phone or email and request for a check for the balance.

Potential Fraud Alerts

This is one of the biggest reasons to avoid overpaying your credit card balance, your account will be flagged for fraud. For some card companies overpaying is not a bad deal if you want to make a purchase that exceeds your credit limit, but if you suddenly Overpay a card with a large amount, they could suspect that a fraudster has gotten access to your card account and intends to use it without your concerns. This could result in your account being shut down temporarily or even permanently. All you need do is to contact the card issuers in such situations.

Above all, one needs to be very careful and avoid overpaying by carefully entering the correct figures when paying, or relying on autopay to make payments on your behalf. Credit cards are a tremendous financial tool when properly used. It helps you make large purchases and transactions without having to carry cash around. They also offer a great rewards program that enables one to save money for daily expenses.


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