Merchandise Interest

Jaymz

Good Afternoon,

Had my credit card bill through from Nationwide today and it has a charge of £5.19 which is 'Merchandise Interest at 1.240% per Month'. What is this?
I paid my card off in full last month so there shouldn't be any interest charges on there.
I have done a search on the net but can't find anything about it.
Thanks in advance

Jaymz

jamalfatty

Is this the first time you've paid it off in full, i.e. have you carried a balance over from previous months?
If so, your being charged interest from the date of your last statement until the date of your payment, which is correct and more or less industry standard.

Bokkens

Good Afternoon,
To pay no interest on your credit card account you must pay it off in FULL each month,this stops any roll over of interest even small amounts add up.
Give Customer services a ring ask them to explain it.
You can set up a DD for the full amount each month that way you won't incur any interest charges.