State tax filing

Yes to the fed refund ... state balance due can never be paid out of the fed refund ever.

If you choose to pay the fee with a CC then the refund processing should  have been dropped however ... did you only pay for the Deluxe fed version ?   And then had the state fee withheld from the federal for the extra fee ?  If you have not yet filed then review your fees in the FILE tab step 1.