Refunds on Credit Card
My statement from last month was $1,600. I have auto-payments set up from my bank to pay the due amount in full.
In the past week - I've booked flights on Continental and then cancelled them within their 24-hour 'flex' period for full refund. The flights cost $400 and I did it twice.
On my account, these purchases show up for $400 then a couple days later a -$400 (credit) appears.
Today when the payment was withdrawn from my bank, it was only for $800, not the $1,600 I expected. The two $400 credits were applied as 'payments'?
My question - will I be charged any interest because of this?
[Note: I went ahead and submitted an additional $800 payment today to avoid the possibility of paying interest, but I'm curious about how this works. I assumed the full $1,600 would be withdrawn from my account]
If no interest charges would occur, then if someone wanted to - they could purchase then cancel tickets at Continental in order to push out the credit card payment with no interest penalty. (e.g. you're $200 short this month, go to Continental, buy a flight, wait ~23 hrs so it posts to your credit card, then cancel the flight for full refund, get credit on the card -- now payment for this month is reduced by cost of the flight, and you can pay the ticket price next month)