What if the total amount due is negative?

Understanding Negative Total Amounts on Your Statement

In some instances, you may encounter a statement with a negative total amount due. This is not an error, but rather an indicator of an overpayment.

What it Means

A negative total amount signifies that you have paid more than the amount owed. This could be due to a number of reasons, such as:

• You made a payment in excess of the current balance.
• You returned merchandise and received a refund that exceeded the original purchase amount.
• You applied a credit or gift card to your account.

Options for Overpayment

When you have an overpayment, you usually have the following options:

Credit:

• The overpayment can be applied as a credit to your account. This will reduce your future balance and avoid overdrafts.

Refund:

• You may request a refund for the excess amount. This will be issued as a cash refund, check, or credit card credit.

How to Decide

The best option for you depends on your individual circumstances. If you anticipate future purchases from the same vendor, applying the credit to your account may be a convenient choice. However, if you prefer to have the cash back in hand, requesting a refund is the way to go.

Additional Considerations

• Some vendors may have policies regarding the expiration of credits. Inquire about any time limits or restrictions.
• If you are not sure why you have an overpayment, contact the vendor for clarification.
• Keep all payment and refund receipts for documentation purposes.

In Conclusion

A negative total amount on your statement is typically an indication of an overpayment. You can choose to have the excess amount applied as a credit or request a refund. Understanding this situation and your options will ensure you make the decision that best meets your financial needs.