CARD SERVICES UNDERSTANDING INTEREST

Example 2: Full payment is not received by the due date (continued)
January Statement
Statement Period 3 January 2008 – 2 February 2008
Summary of Charges
Opening Balance $48.00
Payments & Credits -$20.00
Purchases $80.00 Dr
Cash Advances $0.00
Interest & Other Charges $1.36
Closing Balance $109.36 Dr
Payment Summary
Closing Balance $109.36
Minimum Payment Due $20.00
Minimum Payment Due Date 27/02/08
Overlimit Amount NOW DUE $0.00
Overdue Amount NOW DUE $0.00
Transaction Summary
Date Detail Amount Balance
03/01/2008 OPENING BALANCE $48.00 Dr
27/01/2008 PETROL $35.00 $83.00
28/01/2008 PAYMENT -$20.00 $63.00
28/01/2008 ENTERTAINMENT $25.00 $88.00
29/01/2008 RESTAURANT $20.00 $108.00
02/02/2008 INTEREST ON PURCHASES $1.36 $109.36
End of statement
Example 2: Full payment is not received by the due date (continued)
Aggregated Balances for December
Date Detail Amount Balance No. of Aggregated
Days* Bal**
06/12/2007 GROCERIES $15.00 $15.00 28 $420.00
24/12/2007 GIFTS $33.00 $48.00 10 $330.00
TOTAL $750.00
Interest charged = Aggregated Balance (750) X Daily Rate (0.051918%) = $0.39
Full closing balance for the previous statement is not received by the due date.
Interest is charged on the outstanding balance for each day of the period.
Aggregated Balances for January
Date Detail Amount Balance No. of Aggregated
Days* Bal**
03/01/2008 OPENING
BALANCE
$48.00 $48.00 31 $1,488.00
27/01/2008 PETROL $35.00 $83.00 7 $245.00
28/01/2008 PAYMENT -$20.00 $63.00 6 -$120.00
28/01/2008 ENTERTAIN-
MENT
$25.00 $88.00 6 $150.00
29/01/2008 RESTAURANT $20.00 $108.00 5 $100.00
TOTAL $1,863.00
Interest charged = Aggregated Balance (1863) X Daily Rate (0.051918%) = $0.97
Full closing balance is not received for the previous statement. The transactions
within this statement are no longer entitled to the up to 55 days interest fee offer.
* No. of Days is the number of days from the day of the transaction to the end of
the statement period.
** Aggregated Balance is a daily aggregate calculated by multiplying the amount
by the No. of Days. This figure is totalled to determine the aggregated balance
for the statement period.
In this example, the interest rate is 18.95%pa
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