# Credit Card Refunds and Returns

> When categorizing inflows from credit card returns in YNAB, the category to choose depends on whether the purchase was planned for initially in YNAB or not.

Source: https://support.ynab.com/en_us/credit-card-refunds-and-returns-H1J7qDWkj

Last updated: 2026-07-28T15:19:16.010Z

Categorize credit card refunds to a spending category of your choice or the category you used for the original transaction. Learn what to do if your Credit Card Payment category goes negative as a result of the refund.

When you receive a refund or return for a credit card purchase, follow the platform-specific steps  to [enter an inflow transaction](https://support.ynab.com/en_us/how-to-add-income-and-other-inflows-H1ZNjfZJi#adding). Make sure to categorize the transaction back to the original spending category (or the category you **would have** used if the original purchase happened before you started YNAB), and not Ready to Assign.

#### Why categorize back to a spending category?

Categorizing a refund to the original spending category will move money from the Credit Card Payment category to the category you choose. This is the reverse of what happens with regular credit card spending. If you no longer need the money from that return in the spending category, you can [move that money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) to Ready to Assign or another category in YNAB.

#### Help! My Credit Card Payment category went negative after this.

If your Credit Card Payment category goes negative after entering a return, move the money back to the Credit Card Payment category from the spending category. This can happen if you've paid your card off between the original purchase and the return.

For example, let's say you get a $10 refund for a clothing return, and you've categorized the inflow back to the initial spending category (_Clothing_). $10 will move from the card's related Credit Card Payment category down to the _Clothing_ category. If you've already used the $10 from the original purchase to pay down the balance, that move may make the Credit Card Payment category go red and negative.

**The fix:** [Move the money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) from the _Clothing_ category back up to the Credit Card Payment category. This will ensure you still have enough set aside to make your payment.

**Note:** If your refund puts your credit card account into a positive balance (the bank now owes you money), see [Credit Cards with a Positive Balance](https://support.ynab.com/credit-cards-with-a-positive-balance-an-overview-By_H6uzJo) for how to handle that situation. 

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