Charged me interest on MY money

the_insider

You are charged interest on transactions, not on the balance per se. So if you used the card you will be charged interest at the relevant rate for that type of transaction.

Bob_the_Saver

the_insider wrote: »

You are charged interest on transactions, not on the balance per se. So if you used the card you will be charged interest at the relevant rate for that type of transaction.

Thanks for that but I don't understand what you mean (sorry) if I'm always in credit, at all times even at the end of the month why would interest be charged? If I pay the card off in full at the end of the month (which I always do) I don't pay interest for borrowing their money so why would I have to pay interest to them when I'm using My money.

dtaylor84

the_insider wrote: »

You are charged interest on transactions, not on the balance per se. So if you used the card you will be charged interest at the relevant rate for that type of transaction.

That doesn't make any sense. How do you charge interest on a transaction? Interest is applied over a time period, a transaction is an instantaneous event.

Foreign exchange fees, cash withdrawl fees, over limit fees, etc. can be charged on a transaction (either a fixed amount or a percentage of the transaction).

Interest rates are assigned based on the type of the transaction. Interest is calculated on "each rate's" balance for each day. If the account is in credit there should be no outstanding (debit) balance, and no interest charge.

Perhaps their system calculated 1 day's worth of interest for each transaction before clearing them against the credit balance, without applying the normal interest free period (if one applied to the relevant transactions).

~Brock~

Bob_the_Saver wrote: »

I've just received my visa card bill. After a couple of months with a zero balance, at the start of this month's bill I was credited with a £300 refund by a trader. I then used my card during the month and by the end when my bill was issued I was still £12 in credit - so far so good, so why did they charge me 6p "interest on my purchases" anyone have any ideas?

In chronological order on your statement is the refund from the trader the earliest item, or are some of your other purchases dated prior to this? If so then you would have been in debit for a short about of time before the refund hit the account and this could account for the interest charge.

Bob_the_Saver

~Brock~ wrote: »

In chronological order on your statement is the refund from the trader the earliest item, or are some of your other purchases dated prior to this? If so then you would have been in debit for a short about of time before the refund hit the account and this could account for the interest charge.

Refund was over a week before the first spending!

ILW

Bob_the_Saver wrote: »

6p added to all your credit card bills (for those who don't pay them off each month) adds up to...... a hell of a lot, are you sure your interest calculation is correct?. I have asked the credit card company, they "don't know"
so that,s a lot of help. It's been credited back + the cost of the phone call but that's not what's important.

No it doesn't.

~Brock~

ILW wrote: »

No it doesn't.

Yes it does. If you had 17 credit cards it would add up to over a pound :eek:

Bob_the_Saver

~Brock~ wrote: »

Yes it does. If you had 17 credit cards it would add up to over a pound :eek:

and if 17 million cards were overcharged by 6p......................

~Brock~

Bob_the_Saver wrote: »

and if 17 million cards were overcharged by 6p......................

Crikey, I didnt realise you had that many....:p

ILW

What's a Freddo?