How is my ASB credit card interest calculated and charged?

Last Updated: 19 Sep 2014

There are two types of interest, based on different transactions.

The first is Interest on transactions where you have purchased goods and services.

The second is cash advance interest which is charged when you get cash from your credit card account, (eg a cash advance through an ATM withdrawal or a transfer through FastNet Classic).  We also charge cash advance interest on dishonoured payments.

Interest on cash advances and dishonoured payments is charged on a daily basis.  You will incur interest from the date the cash advance or dishonoured payment is processed to your account, to the time when the cash advance or dishonoured payment is paid in full.

Where you have a cash advance or dishonoured payment amount outstanding, your statement includes interest only up to the point the statement is issued.

To avoid further interest charges, you will need to pay more than the closing balance of your statement; enough to cover the interest incurred from the date of your statement, to the time when the cash advance or dishonoured payment is paid in full.

You’ll be charged interest on your purchases if you do not pay the full amount of your statement closing balance by the payment due date. This interest is charged at the purchase interest rate on the daily balance of your account.

The daily balance is made up of the outstanding balance from the previous day (excluding cash advances, dishonoured payments, fees and charges), plus any new purchases and margins and less any payments and credits.

If you pay the closing balance of your statement by the payment due date, but this closing balance includes purchase transactions from two or more months ago, you’ll be charged interest on these transactions from the opening date of your next statement, to the time you pay in full for these transactions.

If the previous month's closing balance is paid in full on or before the payment due date, and this balance does not include purchase transactions from two or more months ago, you won’t be charged any interest unless we processed a cash advance or dishonoured payment to you in that time.  In these circumstances, if you repay the total amount owing, rather than the minimum amount due, you’ll avoid paying credit card interest altogether.

Any purchases you make when the previous statement closing balance has been paid in full, receive at least 25 days interest free.

You’ll get a maximum of 55 days interest free on purchases, when your purchase transaction is received by ASB the day after your account statement closes, provided you’ve paid your account in full and there is a nil (or credit) balance on your credit card.

For more information, please refer to a copy of the Credit Card Conditions of Use.

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