What Is a Purchase Adjustment on a Credit Card?

A purchase adjustment on a credit card is a modification made to a transaction after the initial charge has been processed. These adjustments serve to correct, modify, or finalize the amount associated with a purchase. They can result in either a credit, which decreases the amount owed, or a debit, which increases it.

Understanding Purchase Adjustments

A purchase adjustment is an alteration to a credit card transaction that occurs after the original charge appears on your account. The primary purpose of these adjustments is to ensure the accuracy of your account balance by correcting errors, accommodating changes, or finalizing financial obligations.

Common Reasons for Adjustments

Various scenarios can lead to a purchase adjustment appearing on your credit card statement. One frequent reason is a refund or return, where an item purchased is sent back to the merchant, resulting in a credit to your account for the returned amount. Another common adjustment occurs with price guarantees, which happen when a retailer offers a lower price for an item shortly after your purchase, crediting you the difference. Billing errors or corrections, whether originating from the merchant or the card issuer, also necessitate adjustments to rectify inaccurate charges.

Foreign transaction adjustments may occur due to fluctuations in currency exchange rates between the time a purchase is made in a foreign currency and when it is finally processed. Promotional credits are another type of adjustment, often applied by card issuers for specific offers, such as sign-up bonuses or rewards for certain spending categories. While distinct, chargebacks are a specific form of adjustment initiated by the cardholder to dispute a transaction, leading to a temporary or permanent credit if the dispute is resolved in their favor.

How Adjustments Appear on Statements

Purchase adjustments appear on your credit card statement or online transaction history with specific labels that indicate their nature. Common descriptions you might encounter include “Credit,” “Refund,” “Return,” “Adjustment,” or “Correction.” Sometimes, a more general label like “Miscellaneous Credit” or “Miscellaneous Debit” might be used. These entries are linked to the original transaction they are modifying, either by referencing the original transaction date and merchant or by being listed in close proximity to it. Review the amount and date of each adjustment to ensure it aligns with your expectations.

Monitoring and Managing Adjustments

Effectively monitoring and managing purchase adjustments is an important part of responsible credit card use. Regularly reviewing your credit card statements, at least monthly, allows you to identify all transactions, including any adjustments, and verify their accuracy. This consistent review helps ensure that expected refunds or corrections have been properly applied to your account. It is recommended to keep physical or digital records of receipts and any documentation related to purchases, returns, or disputes for at least 60 days.

If you identify an adjustment that seems incorrect or unexpected, the first step is to contact the merchant involved to clarify the discrepancy. If the issue remains unresolved with the merchant, you should then reach out to your credit card issuer to report the problem and initiate a formal inquiry. Card issuers have processes in place to investigate disputed charges or incorrect adjustments, and timely reporting can protect your account from errors or potential fraud.