Crediting

When a credit is noted given a positive booking is made on the credit side of an account. All incoming payments on the account are referred as credit. Credits can be incoming payments or dues which have been drawn-in from another account. The credit is usually noted to the beneficiary by the financial institution. Next to a natural person a legal person can receive credits, e.g. corporations.

Crediting an account usually comes to place, when an incoming payment arrives. A credit can also be received through corrections (e.g. a complaint) of an invoice or through a chargeback of a direct debit. Hereby the direct debit payment which at first entered an account and then drawn back by the initial account-owner. The account-owner will then receive a credit in to his bank account.

Credits can also be made in connection with credit card payments. When a chargeback of a credit card transaction has been made, the credit card owner will receive the previously collected amount. When a credit card is reported stolen or lost, and a credit card fraud has been made with the card, a positive credit is usually made. Hereby a distinguishment is made between refunding- and issuer-method.

Refund-Method

The damaged credit card holder can receive the credit note from the merchant. Hereby it comes to the so-called refunding. The charge made out to the credit card is canceled by the merchant and is transferred to the credit card holder’s bank account. With this method of crediting back the credit card holder, no fees are charged.

Issuer-Method

The second method requires the adding of the issuing bank. When the issuing bank is called in, it comes to a chargeback. With issuing a chargeback, the credit card holder is usually billed. The costs of a chargeback amount approximately 20 to 60 Euros.