What Does Purchase Adjustment Mean on a Credit Card?

A “purchase adjustment” on a credit card statement can initially cause confusion. These entries are common occurrences that represent modifications to a previously recorded transaction or to the overall account balance. Understanding these adjustments is straightforward and helps clarify how your credit card finances are managed.

What a Purchase Adjustment Is

A “purchase adjustment” on a credit card statement signifies a modification to a transaction that has already been processed or to the credit card account’s balance. It acts as a correction to ensure the accuracy of your financial records. These adjustments can either increase the amount you owe (a debit adjustment) or decrease it (a credit adjustment). They are initiated by the credit card issuer or the merchant to resolve a discrepancy.

Debit adjustments add to your outstanding balance, while credit adjustments reduce it. The goal of any purchase adjustment is to reflect the true financial standing between the cardholder and the credit card company.

Reasons for Purchase Adjustments

Purchase adjustments arise from various common scenarios that affect the final amount owed or credited to your account. One frequent reason is a return or refund, where the refund amount is processed as a credit adjustment on your statement. If a store offers a lower price on an item shortly after your purchase and you qualify for a price match, the difference might be issued as a credit adjustment.

Billing errors or corrections represent another common type of adjustment. These include accidental duplicate charges, incorrect transaction amounts, or other mistakes made by the merchant. If an online order is canceled before it ships, a pending charge might be removed or a credit adjustment issued to your account.

Promotional credits or rebates also appear as adjustments when applied by the credit card issuer or a merchant, reducing your balance. For international transactions, minor adjustments can occur due to fluctuations in currency exchange rates. Fee reversals, such as for late payment or annual fees, also show up as credit adjustments, decreasing your total outstanding balance.

Impact on Your Credit Card Account

Purchase adjustments influence several aspects of your credit card account. A credit adjustment, such as from a refund, reduces your current balance, which is the total amount owed on the card. Conversely, a debit adjustment increases your current balance. This change to your balance also directly affects your available credit; a credit adjustment increases the amount of credit you have left to spend, while a debit adjustment decreases it.

The minimum payment due on your next statement can also be influenced by these adjustments. A substantial credit adjustment might lower your minimum payment, while a debit adjustment could increase it. Purchase adjustments generally do not alter your payment due date. Rewards points or cash back earned on the original purchase are typically reversed when a refund is processed. If you have already redeemed these rewards, your rewards balance might even show a negative amount until new earnings offset it.

Reviewing Your Statement for Adjustments

Regularly reviewing your credit card statements, whether online or physical, helps identify and understand purchase adjustments. Statements provide a detailed summary of your account activity, listing all transactions, payments, and adjustments made during a billing cycle. Look for entries specifically labeled “purchase adjustment” or similar descriptions.

When you locate an adjustment, verify its details by matching it to a known activity, such as a specific return receipt, a price match confirmation, or an expected fee reversal. Ensure the amount of the adjustment is accurate relative to the underlying transaction. If an adjustment appears unexpected, incorrect, or does not correspond to any of your activities, contacting your credit card issuer or the merchant promptly is advisable.

For billing errors, federal regulations typically allow you 60 days from the date the statement was mailed to dispute a charge in writing. The card issuer must acknowledge your dispute within 30 days and investigate it within two billing cycles, generally no more than 90 days. Maintaining records of your purchases, returns, and any related communications can assist in resolving discrepancies efficiently.