Why does adding credit to credit cards take longer than charging fees to it?

Question

I was charged incorrectly at a hotel. The hotel agreed. They told me it will take 5-10 business days to see the credit on my card.

I want to know why such a LAG? It seems if they can instantly take the money off of the card, why can't they replace it with the same speed?

Answer 1

It depends upon when the hotel settles their credit card statements, some do it every night and some do it once a week.

Answer 2

The hotel may have checks in place, such as someone approving refunds or only allowing a manager to actually do the charge reversal, to ensure that the right amount of money is being returned.

Second, sometimes the credit card may have a delay in showing recent activity even though the charge or credit has already posted.

Business deliberately give a longer estimated time frame in case sometime unforeseen happens. It's not a question of speed, but rather allowing enough time for the process to be completed before they attempt a refund again and accidentally refunding you twice.

Answer 3

Credit card companies charge various fees for credit card usage. These fees are important for the consumer as they increase the ownership costs of the credit card. Knowing these important fees types will help a consumer choose the right credit card in a better way. The most important fees associated with credit cards are:

1. Annual fees

Fees charged by credit card companies to use the credit card. This fees is charge on an annual basis and is charged just for keeping the credit card. Example an annual fee of 45$ per year.

2. Late Payment fee

When a credit card holder is not able to repay his monthly balance on time a late payment fee is charged. This fee is not charged if you repay even the monthly minimum, but if you miss an installment get ready to pay the late payment fees. Example: Based on your balance on the late fee posting date - $15 if $100 or less; $29 if between $100.01 and $250; $39 if over $250. Read more about it at: http://www.credit-card-gallery.com/article/255,Do_you_know_the_5_important_fees_types_associated_with_a_credit_card

Answer 4

Because credit card companies are in the biz they are in to make money. Period. They will do anything they have to do to wring you dry of your funds, including scamming you. Cut them up while you still have money!!!!