Originally Posted by
shoreditch_tom
Has anyone had any experience of how refunds are handled on this card yet?
Specifically, if a transaction made in the promo period is then reversed outside of the promo period are avios deducted at the standard (lower) rate or are they linked to the rate at the time of the original transaction?
If the former then I guess to avoid an avios claw back situation it is simply a case of ensuring that spend in a billing period yields more avios than are deducted as a result of the refund.
If it's the latter, this could make things somewhat annoying!
As a possible third scenario/complication, I assume the current 2.5/5 Avios promo rate would have no effect on any refund where the original transaction was before this period (eg claw backs would not be at this latest promo rate?)
As a point of interest, what would be the situation if Avios are clawed back, but the Avios.com account no longer has the Avios in it as they have been transferred to BA - do they have claw back ability from BA accounts?
Reason for asking all this is that I made a number of flexible hotel bookings during the initial 12.5 promo period, and am now considering changing some of these. The refund / new charges would balance out but am less likely to change if I will lose the bonus avios.
Final question (which may actually answer all the above): is a refund always a "reversal" ie tied to an original transaction. I am thinking amounts may not match if, for example, an admin fee is deducted (like with BA bookings) so does the CC company just see this as a random credit or does it reference back the original transaction? If it doesn't reference the original transaction but is just made to the same payment card I see no basis that LTSB could link the transaction to the original promo period anyway.
Thoughts?
These are all well thought through points.
I have just refunded £10k I charged on the Amex during the 10 x miles, and have immediately spent it again on paying my July tax bill on the MC.
I am not expecting a clawback of the 10x bonus. Not that the Avios are still there anyway, of course! Unfortunately it will be 3 weeks until my next statement so I won't know for sure until then,.
Even then, though, I am likely to run a negative Avios balance for the month because of the disparity between MC and Amex earning. It is not clear if Lloyds will try to take Avios back or if they simply sit on a negative transfer balance, like Amex, and do not transfer new spend miles across until it clears.
I need to add in the mix the double miles on Amex promo, since in theory I should be deducted double miles for my refund. However, that correction is meant to post separately in September, so heaven knows what will happen. I am also intrigued, since double miles applies only to the first £10k of spend, how they treat refunds in this process.