Loyalty Register glossary
Statement credit
An amount a card issuer applies to a credit card account to lower the balance owed, often from redeemed points, a refund or a card benefit.
A statement credit is an amount a card issuer applies to a credit card account to lower the balance owed. Chase puts it simply: a statement credit reduces the outstanding balance on the account. In loyalty programs it is the redemption that turns points or cash back into money off the card bill, and it is common in bank and co-brand card programs.
Updated · By Loyalty Register Editorial TeamRelated terms
What creates a statement credit?
Several things can, and they all show up the same way on the statement:
- Redeeming points or cash back rewards for a credit.
- Card benefit credits, such as an annual credit for travel, dining or a partner brand.
- Refunds when a merchant takes back a purchase or a disputed charge is reversed.
- Welcome offers and targeted offers that pay a credit after qualifying spend.
A statement credit does not have to be paid back: it is not a loan. A credit tied to a purchase can be taken back, though, if the purchase is reversed or the offer’s terms were not met.
Is a statement credit the same as a payment?
No. Chase says a statement credit reduces the card balance but does not count as a payment toward the minimum due, so interest or late fees can still apply if the minimum payment is missed. For a program, this matters in member communications: a reminder that “your $50 credit has posted” should not read as if the bill is settled. Chase also notes that a redeemed credit usually posts within a few business days.
How does its value compare with other redemptions?
In many card programs a statement credit converts points at a lower value than travel or transfers to partners; Chase states that statement credits may offer a different value per point than travel or gift cards. In a hypothetical program where 50,000 points are worth $500 as travel but $250 as a statement credit, members who take the credit get half the value. A lower rate can reflect the lower cost of cash-like rewards, but members comparing options will find the gap, so show it.
What should a program that offers it check?
It is easy to understand, needs no catalog or partner, and settles points liability at a known price. If you run a co-brand card, agree with the issuer who sets the rate, who funds it and how changes are announced. Show the point value next to each option. And decide whether a credit against any purchase is right, or whether a credit against purchases with your own business keeps the reward tied to your brand.