In plain English
This is the extra amount left after all charges on an account have been fully offset by payments or other credits. It shows that more has been applied to the account than has been charged.
In context
Here, "credit balance" indicates that an amount remains in credit on the account rather than an amount being owed.
- Situation
- Understanding invoices, billing statements, balances, due dates, credits, and receipts
- What it communicates
- labels a credit amount remaining on the account instead of an amount due
Meaning limits
By itself, the term does not say why the excess exists or what will happen to it.
Examples
“After the duplicate payment cleared, the account had a credit balance of €40.”
“The final statement showed a credit balance, not an amount due.”