What Is a Returned Payment Fee on a Credit Card?

A returned payment fee may be charged when a payment you make toward your credit card cannot be completed. This can happen for reasons such as insufficient funds or problems with the bank account used for the payment. A returned payment can also leave your credit card bill unpaid, so understanding what happened—and correcting it quickly—is important.

Why Would a Credit Card Payment Be Returned?

A credit card payment can be returned if the bank account used for the payment does not have enough available funds, the account information is incorrect, the account is closed or another problem prevents the payment from being processed. The exact reason should appear in your bank or credit card account records.

What Happens After a Credit Card Payment Is Returned?

If a payment is returned, the amount may be added back to your credit card balance because the payment was not successfully completed. Depending on your card’s terms, you may also be charged a returned payment fee. Check your account promptly to confirm the balance and whether another payment is needed.

Can a Returned Payment Make Your Credit Card Payment Late?

Yes. If the returned payment was intended to satisfy your required payment and you do not replace it by the due date, your account may become past due. That could lead to consequences associated with a late payment, depending on how quickly you correct the problem and the terms of your account.

How Much Is a Returned Payment Fee?

eturned payment fees vary by card issuer and account terms, and applicable legal limits may affect what can be charged. Check your card’s current fee disclosure rather than assuming a specific amount. Also remember that a returned payment could lead to additional costs if it causes your required payment to become late.

Does a Returned Payment Hurt Your Credit Score?

A returned payment itself is not necessarily reported to the credit bureaus as a late payment. However, if the returned payment leaves your required credit card payment unpaid and the account becomes sufficiently past due, the delinquency could eventually be reported. Correcting the returned payment quickly can help prevent the account from becoming further past due.

What Should You Do After a Payment Is Returned?

First, find out why the payment was returned and make sure sufficient funds are available before trying again. Then make the required payment as soon as possible and confirm that it successfully posts to your credit card account. If the due date has already passed, consider contacting the card issuer to confirm your account status and any fees that were charged.

Can You Ask the Credit Card Company to Waive the Fee?

You can contact the card issuer and ask whether the returned payment fee can be waived, particularly if this is an unusual occurrence on your account. The issuer is not required to waive the fee, but it may be worth asking. Be prepared to explain what happened and confirm that the replacement payment has been made successfully.

How Can You Prevent Returned Payments?

Before scheduling a credit card payment, confirm that the linked bank account has enough available funds and that the account information is correct. If you use autopay, periodically check both accounts to make sure payments are processing successfully. Payment alerts can also help you catch a problem quickly.

Returned Payment vs. Late Payment

A returned payment and a late payment are different, although one can lead to the other. A returned payment means the attempted payment was not successfully completed. A late payment means the required payment was not received by the due date. If a returned payment is not replaced quickly enough, the account may become late.

Don’t Forget the Other Credit Card Fees

Returned payment fees are only one potential credit card cost. Late fees, annual fees, balance transfer fees, cash advance fees, foreign transaction fees and interest charges can also affect what a card costs. Understanding the full fee structure can help you avoid surprises.

See our guide to credit card fees to watch out for for a broader look at common card costs.

The Bottom Line

A returned credit card payment means your attempted payment was not successfully completed, and it can lead to a fee or a late payment if the problem is not corrected quickly. Check why the payment was returned, make a replacement payment as soon as possible and confirm that it posts successfully to your account.