What is a Finance Charge and how is it computed?
A Finance Charge is the interest billed to the account if the cardholder pays an amount less than the Statement Balance on the corresponding due date. The Finance Charge, calculated on an average daily basis, will be applied on the account’s outstanding balance until full payment is made. The outstanding balance is the aggregate of any unpaid outstanding charges billed to the account (whether or not reflected in the Statement of Account), less any credits on the account. The daily outstanding balance is multiplied by the applicable interest rate to arrive at the daily finance charge. At the end of the billing cycle, the daily finance charges are added up and reflected in the Statement of Account. If you pay less than the Total Payment Due but more than the Minimum Payment Due, a Finance Charge will be applied to the total outstanding balance until full payment is made.
