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What is a Statement Credit?

3 min read

Last Updated: April 9, 2025

Table of contents

Key Takeaways

A statement credit appears on your credit file after your card issuer has applied funds to your account.
You might receive statement credits after returning credit card purchases or redeem your credit card rewards as statement credits.
Statement credits could reduce your credit card balance or cover some fees.

A statement credit is almost always a welcome sight on your credit card statement. You might notice a statement credit appear after you’ve returned a purchase or see certain credit cards mention statement credits as part of their membership rewards program. But you might be wondering, “What is a statement credit, exactly?” And what do you have to do to receive one? Read on to learn how you may get a statement credit and how a statement credit could affect your credit card account.

Definition of a statement credit

A statement credit is a certain amount of money your credit card issuer applies to your account. It appears on your statement as a negative number, like a credit card payment.

If you carry a balance on your card, a statement credit could reduce your debt. This may also affect your credit card bill by lowering the amount of interest you owe on your credit card balance. You may use statement credits to cover an annual fee if your card charges you one. However, all Discover credit cards charge no annual fee.

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You might receive a statement credit after getting a refund for a credit card purchase. For example, say you’ve returned a sweater to a retail store. After the merchant processes the refund, your credit card company may apply a statement credit to your account for the cost of the sweater. Refunds, however, aren’t the only way to get statement credits.

Common examples of Discover statement credits

In addition to refunds and disputed charges, you may be able to redeem credit card rewards as statement credits. With Discover, cardmembers could receive statement credits for using their credit card and referring friends to Discover.

Redeem Miles for Travel or Cash¹

Some card issuers offer travel credit cards. Each eligible purchase with a travel rewards card may earn Miles that could make flights and other travel expenses more affordable.

Did you know?

The Discover It^® Miles card offers even more ways to redeem rewards. You can turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants, and more.¹

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Refer friends to become Discover® Cardmembers

You could earn up to $500 in statement credits by sharing Discover with people you know through the refer-a-friend program. Every time someone you refer to Discover is approved for a new credit account using your share link, you will receive a statement credit within 1-2 billing cycles. When they make a qualifying purchase on their new card within the first three months after activation, they’ll also receive a statement credit.²

How to use a statement credit

After you return an item or refute a charge, your credit card issuer should automatically add a statement credit to your account. If you’re redeeming membership rewards as a statement credit, you may have to take some additional steps on your credit card company website or mobile app. To take advantage of your statement credit, you could simply continue using your card as you usually would—the credit should bring down your statement balance.

If a statement credit is larger than your debt, you might have a negative balance. In that case, you could request the amount from your credit card issuer as a check, money order, or direct deposit.

With Discover, you can earn a credit card statement credit in several ways. Whether you’ve received a refund or earned a reward, a statement credit could lower your balance and give you more credit to use.