Credit Cards 101: What Happens When I Get a Refund on My Credit Card?
Ever received a refund on your credit card? It can lead to adverse consequences in your pursuit for cashback or miles, particularly if the refund is posted in a different month from your transaction.
Note: mechanics of refunds may differ from bank to bank. Do provide your own experience in the comments or Telegram.
It affects your minimum spend
Refunds, understandably, will affect the amount you need to spend within a month, but it typically affects only the month the refund is posted in.
Refund posted in the same month as transaction
For refunds that are posted within the same month as your transaction, everything works in a pretty straightforward way. If your minimum spend is S$800, for instance, and you have already spent S$900 but have a S$200 transaction refunded, your spend for that month is S$700. You would thus need to spend another S$100 to meet the S$800 spend requirement.
Refund posted in a different month
If your refund is posted in a different month, the refunded amount reduces your minimum spend for the month it is posted. For instance, you made a S$900 of spend in January, and S$200 is refunded but the refund posts in February, you must now spend at least S$1,000 in February to meet your S$800 minimum spend.
| Month | Spend Made | Refund Posted | Effective Spend | Notes |
|---|---|---|---|---|
| January | S$900 | N/A | S$800 | Effective Spend is S$900 ✅ Minimum spend met |
| February | S$900 | S$200 | S$700 | Effective spend is S$700 ❌ Minimum spend not met |
What happens to my cashback, miles, or points?
Card rewards are typically clawed back when refunds happen, but the process can be very different depending on bank as well as how the cashback/miles were awarded.
Based on my entirely anecdotal experience, this is what can happen to card rewards when a refund happens:
| Situation | Rarity* |
|---|---|
| Only base rewards are clawed back | Fairly common, I guess |
| Only bonus rewards are clawed back | Never seen this before |
| Both base and bonus rewards are clawed back | Most common scenario |
| No rewards are clawed back | It happens though probably quite rare now |
My refund caused me to fall below the minimum spend last month – what now?
What about cards with minimum spends to unlock higher cashback or miles earn rates?
Take for instance a card that which requires S$800 of minimum spend to unlock 6% cashback rate, failing which only 0.3% is given. If you reach S$900 of spend in January and get 6% cashback (S$54 cashback out of S$900), only for S$200 to be refunded in February, would you now only get 0.3% cashback on S$700, getting only S$2.10?
Generally, the answer is no. As explained in the previous section, your minimum spend for January has been met, and refunds posted in February affects February’s minimum spend. You would likely just lose the cashback on the S$200 transaction.
If the refund posts within January, however, you would have fallen below the minimum spend of S$800. You would need another S$100 posted within January or you would have failed to hit the minimum spend for the month.
What if I fall short of the amount needed for my sign-up reward?
For those who need to spend a certain amount to get their sign-up gift but fall below the amount owing to a refund, the sign-up gift may be in jeopardy.
Given the significantly higher stakes of losing your sign-up reward, try not to spend on things that has a chance of being refunded to avoid falling into this predicament.
What about spend caps for bonus miles/cashback?
Refunds, however, do not tend to affect spend caps.
Take UOB Preferred Platinum Visa and its new monthly spend caps of S$600 for online transactions and S$600 for contactless payment transactions. If you made some spending in January and have a refund of say S$200 hit your account in February, you will still earn 4 miles per dollar on a maximum of S$600 of online spending in February itself.
If you need to cash out your refund
In the event you need to cash out your refund, some banks make it possible:
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Because refunds are relatively rare occurrences and the policies of each bank and even card may differ, do provide data points on your own experiences in the comments or Telegram community so we can share knowledge.
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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.
He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.
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What about Uob KrisFlyer which bonus miles credit to Kris flyer acct on statement year. If refund made after miles were credited, how it affect the miles payout on the following year? Uob can take back the miles that were already credited?