New Delhi, Oct. 18 -- When you buy a new outfit or home appliance using a credit card and later decide to return it, the merchant initiates a refund. Depending on the store's policy and refund option that you choose, the amount may be credited to your credit card account or offered as wallet balance for future purchases.

In the case of credit card payments for online orders, the bank pays the merchant on your behalf and you are required to clear the dues by the payment deadline. Therefore, a refund here generally does not mean receiving physical cash.

Instead, the amount is credited back to your card account, reducing your outstanding dues or increasing your available credit limit. In contrast, refunds for cash on delivery or UPI transa...