Macquarie Card Services

Transcription

1 Macquarie Card Services Understanding Interest Macquarie Card Services is a division of Macquarie Bank Limited ABN Australian Credit Licence which provides and administers credit.

2 This guide provides an overview of the interest charges associated with your Macquarie Credit Card. For more details, please refer to your letter of Offer and Conditions of Use booklet, or contact us on

3 Contents 1. How is the interest rate on my Macquarie Credit Card calculated? 4 2. How are payments allocated to my account? 4 3. When must payment be made to my account? 5 4. Are credits and payments the same? 5 5. How can I avoid being charged interest? 6 6. How is interest charged when full payment is not received by the due date? 9 7. How does my account return to interest free status? What is a minimum repayment warning (MRW)? What is an introductory offer? When is interest charged during the introductory period? How is interest charged when the introductory offer expires? Suggested tips for avoiding additional fees 30 Understanding Interest 3

4 1. How is the interest rate on my Macquarie Credit Card calculated? Interest is charged on borrowing money, calculated based on the balance you have outstanding on each day of the statement cycle. The interest rate, also known as the Annual Percentage Rate (APR) is included on the front page of every statement you receive. Interest is calculated based on the daily rate of interest. This rate is also included on each monthly statement and is effective for interest calculations in that statement period. Daily percentage rate = APR/365 days Interest rates are variable and subject to change and Card Services credit criteria. When interest rates change, you will be notified by an advertisement in a national newspaper or in writing. If we notify you of a change by advertisement, your next statement will also include a notification of the new interest rate. The type of transactions you make and the way in which you make payments to your account will determine if interest is charged to your account. 2. How are payments allocated to my account? Payments are also allocated to your account in a particular order. They are allocated to an account in the following order: cash advances purchases* special promotions e.g. balance transfer offers* Cash advances this includes withdrawals of cash from ATMs or over the counter at a bank and cash advance related fees. Interest is charged from the date of the transaction. Interest free days do not apply to cash advances. * where a special promotion has expired and the interest rate has reverted to the standard variable interest rate for purchases, payments will be applied to special promotions before purchases. This guide is for information purposes only and does not form part of your credit contract. In the event of any inconsistencies between this guide and the Conditions Of Use, the Conditions of Use prevail. 4 Understanding Interest

5 Purchases interest is charged on transactions including retail spend, BPAY transactions, direct debit payments. These transactions may be eligible for up to 55 days interest free, provided that the balance of your account is paid in full by the due date (including any special promotions). Special promotions this includes any introductory offer or promotional rate e.g. 0% pa interest on balance transfers for 6 months. Transactions included in this offer will be classified as a special promotion for this time period only. Following the expiry of this offer, any outstanding funds will be charged interest at the current purchases interest rate. This will appear on your statement as special interest. 3. When must payment be made to my account? The minimum monthly payment is calculated as a percentage of your closing balance for the statement period or $50 (whichever is greater). You must pay the full amount of the closing balance if it is less than $50. You may always pay more than this amount and payments can be made at any time. If your balance exceeds your credit limit or you have an overdue payment outstanding, immediate payment must be made to your account. Payment must be received by the due date indicated on your statement. Please allow time for these funds to clear before they are credited and available on your account. You will not receive a statement if there is no activity, including interest charges or fees, in that statement period. 4. Are credits and payments the same? Credits and payments are not the same and are not applied to your account in the same way. You should not assume that a credit to your account has reduced your minimum payment and you will still be required to make a payment by the payment due date. Understanding Interest 5

6 5. How can I avoid being charged interest? These interest free days are only available on purchases and not other types of transactions, such as cash advances and balance transfers. You are eligible for these interest free days when the closing balance of your previous statement (including any balance transfers) is continuously paid in full on or before the due date indicated on your statement. This due date is typically 25 days after the end of your statement period when your statement is issued to you. In the following example, no interest is charged on the January statement since full payment was received by the due date of 27th January. As full payment is always made by the due date, interest is not charged on purchases in the subsequent statement period. Account is approved on 3rd December 2012 and begins first statement period with balance. December Statement Statement Period 3 December January 2013 Opening Payments & Credits Purchases Cash Advances 03/12/ /12/ /12/2012 GROCERIES GIFTS $56.00 $33.00 $89.00 $89.00 $ /01/13 $56.00 $ Understanding Interest

7 Example 1: Full payment is received by the due date (continued) January Statement Statement Period 3 January February 2013 Opening Payments & Credits Purchases Cash Advances 03/01/ /01/ /01/ /01/ /01/2013 PAYMENT PETROL ENTERTAINMENT RESTAURANT -$89.00 $35.00 $25.00 $20.00 $ $89.00 $80.00 $80.00 $ /02/12 $89.00 $35.00 $60.00 $80.00 Understanding Interest 7

8 Example 1: Full payment is received by the due date (continued) February Statement Statement Period 3 February March 2013 Opening Payments & Credits Purchases Cash Advances 03/02/ /02/ /02/ /03/2013 PAYMENT INSURANCE PETROL -$80.00 $25.00 $ $80.00 $75.00 $75.00 $ /03/13 $80.00 $ Understanding Interest

9 6. How is interest charged when full payment is not received by the due date? When full payment is not received by the due date, the daily interest rate will be charged on the outstanding balance for each day of the statement period. You can calculate how much interest has been charged to your account by performing the following three steps: Calculate the aggregated balance for any opening balance, new transaction or payment by multiplying the amount by the number of days remaining in the statement period. Calculate the total aggregated balance by summing all aggregated balances for the statement period. Calculate the interest payment by multiplying the total aggregated balance by the daily interest rate. Interest will be charged to your account on the last day of the statement period. When full payment is made after the due date, an account is no longer entitled to interest free days on purchases. Interest will then be calculated from the beginning of the previous statement period (for purchases made during the previous statement period), and charged at the end of the current statement period. A late payment fee will also be incurred. Following is an example showing how interest is calculated when full payment is not received by the payment due date as indicated on your statement. Understanding Interest 9

10 Example 2: Full payment is not received by the due date Account is approved on 3rd December 2012 and begins first statement period with balance. December Statement Statement Period 3 December January 2013 Opening Payments & Credits Purchases Cash Advances $ $ $ /01/2013 3/12/2012 6/12/ /12/2012 GROCERIES GIFTS $ $35.00 $ $ The above transactions are interest-free for this statement if the full closing balance for this statement is received by the payment due date. 10 Understanding Interest

11 Example 2: Full payment is not received by the due date (continued) January Statement Statement Period 3 January February 2013 Opening Payments & Credits Purchases Cash Advances 3/1/ /1/ /1/ /1/ /1/2013 2/2/2013 PETROL PAYMENT TRAVEL BILLS INTEREST - PURCHASES $ $25.00 $20.00 $4.83 $ $80.00 $4.83 $ $ /02/2013 $ $ $ $ $ $ Understanding Interest 11

12 Example 2: Full payment is not received by the due date (continued) Aggregated s for December No. of Days* Aggregated ** Interest Charged 6/12/2012 GROCERIES $ $ $2, $ /12/2012 GIFTS $35.00 $ $1, $0.86 SUB TOTAL $3, $2.05 Interest charged = Aggregated (3570) X Daily Rate ( %) = $2.05 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 s for January No. of Days* 3/01/2013 OPENING BALANCE Aggregated ** Interest Charged $ $ $3, $ /01/2013 PETROL $35.00 $ $ $ /01/2013 PAYMENT - $ /01/2013 TRAVEL $25.00 $ $ $ /01/2013 BILLS $20.00 $ $ $0.52 SUB TOTAL $4, $2.78 Interest charged = Aggregated (4845) X Daily Rate ( %) = $2.78 TOTAL INTEREST $4.83 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 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 20.95%pa. 12 Understanding Interest

13 Example 2: Full payment is not received by the due date (continued) February Statement Statement Period 3 February March 2013 Opening Payments & Credits Purchases Cash Advances 3/2/ /2/ /2/2013 1/3/2013 2/3/2013 PAYMENT INSURANCE PETROL INTEREST - PURCHASES -$ $25.00 $2.55 $ $ $75.00 $2.55 $77.55 $ /03/2013 $ $75.00 $77.55 Understanding Interest 13

14 Example 2: Full payment is not received by the due date (continued) Aggregated s for February No. of Days 3/02/2013 OPENING BALANCE Aggregated Interest Charged $ $ $4, $ /02/2013 PAYMENT -$ /02/2013 INSURANCE 0* 1/03/2013 PETROL $25.00 $ * SUB TOTAL $4, $2.55 TOTAL Interest $2.55 Interest charged = Aggregated ( ) X Daily Rate ( %) = $2.55. * Interest not accrued on current cycle transactions as previous closing balance paid by due date. Full closing balance for the previous statement is received by the payment due date. Interest is charged only on the outstanding balance up to the day before the payment is received. 14 Understanding Interest

15 Example 2: Full payment is not received by the due date (continued) March Statement Statement Period 3 March April 2013 Opening Payments & Credits Purchases Cash Advances $ $77.55 $ $ $ /04/2013 3/3/ /3/ /3/2013 1/4/2013 1/4/2013 GROCERIES PAYMENT RESTAURANT PETROLS $ $77.55 $90.00 $56.00 $77.55 $ $80.00 $ $ Full closing balance for the previous statement is received by the payment due date. Interest is not charged to the account. Understanding Interest 15

16 7. How does my account return to interest free status? Once interest has been charged on any purchases, you are no longer eligible for interest free days until payment has been received for the full closing balance of your last statement. When the statement balance has been cleared, you will receive up to 55 days interest free on any new purchases made. If you have unpaid balances from previous statement periods, and are making payment for the closing balance on your statement, you will not be eligible for interest-free days until you have paid your closing balance in full for two consecutive statement periods. A final interest charge will still appear on your last statement. Interest will be calculated on any outstanding balance from the beginning of the statement period until the date the full payment was received. In the previous example, full payment is made in the February statement period. There is no outstanding balance as at 27th February, so the account returns to interest free status. There is a final interest charge in February which is calculated on the outstanding balance until this payment was received. No interest is charged in the following statement period. 8. What is a minimum repayment warning (MRW)? For each statement period, the MRW provides a cardholder with an estimate of the length of time to repay the closing balance shown on the statement, as well as the estimated interest that may be charged if only the minimum payment is paid each month. In addition, the MRW provides an estimate of the payment amount that a cardholder should make for the account to be paid off within a two-year period. The difference between the two estimated interest amounts provides the cardholder with a potential savings figure. 9. What is an introductory offer? When you opened your credit card account, you may have received an introductory offer on a balance transfer (also known as a special promotion). As this introductory period is calculated from your account open date, the expiry date will differ from your payment due date. Interest may be calculated on any outstanding balance from this expiry date. Please contact us if you are unsure of the expiry date of your offer. You are still required to make the minimum repayments that appear on your statement during the introductory period. Please refer to your letter of Offer for more information relating to any offer you have received. 16 Understanding Interest

17 10. When is interest charged during the introductory period? During an introductory offer of 0% pa interest on balance transfers, interest will be charged on the annual fee and any purchases unless the statement balance is paid in full as indicated on your statement following the balance transfer request. Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT Account is approved on 3rd December 2012 and begins first statement period with balance. December Statement Statement Period 3 December January 2013 from previous statement Payments & Credits Transfers Annual Fee $1, $ $1, $1, /01/2012 3/12/2011 4/12/ /12/2011 ANNUAL FEE BALANCE TRANSFER $ $1, $ $1, Account approved 3rd December 2012 and requested Transfer (0% pa for 4 months) on 20th December Understanding Interest 17

18 Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT (continued) January Statement Statement Period 3 January February 2013 from previous statement Payments and Credits Purchases Cash Advances $1, $6.77 $1, $1, /02/2013 3/1/ /1/2013 2/2/2013 PAYMENT INTEREST - PURCHASES - $6.77 $1, $1, $1, Minimum payment is received and account still within Introductory offer. 18 Understanding Interest

19 Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT (continued) Aggregated s for December No. of Days* Aggregated ** Interest Charged 4/12/2012 ANNUAL FEE $ $ $6, $3.44 SUB TOTAL $6, $3.44 Interest charged = Aggregated (6000) X Daily Rate ( %) = $3.44 Aggregated s for December (BT plan) No. of Days* 20/12/2012 BALANCE TRANSFER Aggregated ** Interest Charged $1, $1, *** SUB TOTAL Aggregated s for January No. of Days* Aggregated ** Interest Charged 3/01/2013 OPENING BALANCE $ $ $4, $ /01/2013 PAYMENT**** - $ $1, $0.69 SUB TOTAL $5, $3.33 Interest charged = Aggregated (5800) X Daily Rate ( %) = $3.33 Aggregated s for January (BT Plan) No. of Days* 3/01/2013 OPENING BALANCE Aggregated ** Interest Charged $1, $1, *** SUB TOTAL TOTAL INTEREST $6.77 * No. of Days is the number of days from the day of the transaction to the end of the statement period. ** Aggregated 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 20.95%pa. *** Transfer in introductory interest free period. **** The payment of is applied to the Annual Fee. Interest is charged on the Annual Fee for the month of December and the remainder of the Annual Fee for January. Understanding Interest 19

20 Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT (continued) February Statement Statement Period 3 February March 2013 Opening Payments & Credits Purchases Cash Advances 3/2/ /2/2013 2/3/2013 PAYMENT INTEREST - PURCHASES - $2.40 $1, $2.40 $1, $1, /03/2013 $1, $1, $1, Minimum payment is received and account still within Introductory offer period. 20 Understanding Interest

21 Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT (continued) Aggregated s for February No. of Days 3/02/2013 OPENING BALANCE Aggregated Interest Charged $ $ $3, $ /02/2013 PAYMENT** - $ $ $0.25 SUB TOTAL $4, $2.40 Interest charged = Aggregated ( ) X Daily Rate ( %) = $2.40 Aggregated s for February (BT plan) No. of Days 3/02/2013 OPENING BALANCE * Transfer in introductory interest free period. Aggregated Interest Charged $1, $1, * TOTAL INTEREST $2.40 ** The payment on is applied to the Annual Fee. Interest is charged on Annual Fee and any associated interest from previous months. Understanding Interest 21

22 Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT (continued) March Statement Statement Period 3 March April 2013 Opening Payments & Credits Purchases Cash Advances $1, $1, $ Dr $1.50 $ Dr $ /04/2013 3/3/ /3/ /3/ /3/ /3/2013 2/4/2013 GROCERIES TRAVEL PAYMENT PAYMENT INTEREST - PURCHASES $53.83 $ $1, $1.50 $1, $1, $1, $1, $ $ Minimum payment is made on 27/03/2013 and full closing balance is received before the introductory offer end date. Offer end date is 02/04/2013 (4 months from account approval date on 3rd December 2012). 22 Understanding Interest

23 Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT (continued) Aggregated s for March No. of Days* 3/03/2013 OPENING BALANCE Aggregated ** Interest Charged $ $ $2, $ /03/2013 GROCERIES $53.83 $ * 15/03/2013 TRAVEL $ $ * 27/03/2013 PAYMENT*** - $ * 27/03/2013 PAYMENT (-$1,059.17)**** -$ SUB TOTAL $2, $1.50 Interest charged = Aggregated ( ) X Daily Rate ( %) = $1.50 Aggregated s for March (BT plan) No. of Days* 3/03/2013 OPENING BALANCE 27/03/2013 PAYMENT (-$1,059.17)**** Aggregated ** Interest Charged $1, $1, ** -$ $ ** SUB TOTAL TOTAL INTEREST $1.50 * Interest not accrued on current cycle transactions as previous statement closing balance paid in full. ** Transfer in introductory interest free period. *** The payment on is applied to Purchases. Interest is charged on the Purchases / Annual Fee and any associated interest from previous months. **** The payment on $1, is applied to Purchases first and then the remainder to the Transfer. Interest is charged on the Purchases / Annual Fee and any associated interest from previous months. Understanding Interest 23

24 Example 3: Full payment is received prior to the end of the introductory period 0% pa for 4 months BT (continued) April Statement Statement Period 3 April May 2013 Opening Payments & Credits Purchases Cash Advances $ $ $ $ $ /05/2013 3/4/ /4/ /4/2013 1/5/2013 RESTAURANT PAYMENT PETROL $ $ $38.90 $ $ $ $ Full closing balance of previous statement was received. No interest is charged. 24 Understanding Interest

25 11. How is interest charged when the introductory offer expires? The introductory interest rate applies from the date your account was opened, as indicated on the letter of Offer you received with your Card. During your introductory period, interest will be calculated at the promotional rate. Minimum payment, as indicated on your monthly statement, is still required during this period. In the previous example the account is approved on 3rd December 2012 with an introductory offer of four months. This offer will then expire on 2nd April You can find out your outstanding balance at any time by logging into Macquarie Online, our internet banking website, or by using Telephone Banking. Example 4: Full payment is not received prior to the end of the introductory period 0% pa for 4 months BT Account is approved on 3rd December 2012 and begins first statement period with balance. December Statement Statement Period 3 December January 2013 Opening Payments & Credits Transfers Cash Advances $1, $1, $1, /01/13 03/12/ /12/2012 BALANCE TRANSFER $1, $1, Account approved 3rd December 2012 and requested Transfer (0% pa for 4 months) on 6th December Understanding Interest 25

26 Example 4: Full payment is not received prior to the end of the introductory period 0% pa for 4 months BT (continued) January Statement Statement Period 3 January February 2013 Opening Payments & Credits Transfers Cash Advances $1, $ $ /02/13 03/01/ /01/2013 PAYMENT - $1, $ Minimum payment is received and the account is still within an introductory offer. 26 Understanding Interest

27 Example 4: Full payment is not received prior to the end of the introductory period 0% pa for 4 months BT (continued) February Statement Statement Period 3 February March 2013 Opening Payments & Credits Purchases Cash Advances $ $ $ /03/13 03/02/ /02/2013 PAYMENT - $ $ Minimum payment is received and the account is still within an introductory offer. Example 4: Full payment is not received prior to the end of the introductory period Understanding Interest 27

28 Example 4: Full payment is not received prior to the end of the introductory period 0% pa for 4 months BT (continued) March Statement Statement Period 3 March April 2013 Opening Payments & Credits Purchases Cash Advances $ $ $ /04/13 03/03/ /03/2013 PAYMENT - $ $ Minimum payment is received and the account is still within an introductory offer. 28 Understanding Interest

29 Example 4: Full payment is not received prior to the end of the introductory period 0% pa for 4 months BT (continued) April Statement Statement Period 3 April May 2013 Opening Payments & Credits Purchases Cash Advances 03/04/ /04/ /05/2013 PAYMENT INTEREST -$ $4.39 $ $ $4.39 $4.39 $4.39 $ /05/13 $ $4.39 Understanding Interest 29

30 Aggregated s for April No. of Days 3/04/2013 Aggregated Interest Charged OPENING BALANCE $ $ $7, $ /04/2013 PAYMENT -$ TOTAL $7, $4.39 Interest charged = Aggregated (7650) X Daily Rate ( %) = $4.39 Outstanding Transfer amount is not paid in full by the Transfer expiry date (4 months from the account approval date). Interest is charged to the account. In this example, the interest rate is 20.95%pa. For details on how to return the account to an interest free state, please refer to example #2 of this brochure. 12. Suggested tips for avoiding additional fees 1. Pay your minimum payment by the due date as indicated on your statement. 2. Set up a direct debit to avoid making a late payment. To set up a direct debit facility on your account, complete a Direct Debit Request Form available on Macquarie Online or by contacting us. You can select to either have the minimum payment, full statement balance, or a fixed amount debited from your nominated account. 3. Monitor your transactions and available credit using Macquarie Online or Telephone Banking. Access Macquarie Online, our internet banking website at macquarie.com.au/personal using your Macquarie Access Code (MAC ID) and internet banking password. Access Telephone Banking on using your Macquarie Access Code (MAC ID) and your Telephone Banking PIN (TPIN). Please contact us if you require your MAC ID, internet banking password or TPIN to access self service banking facilities. 4. Ensure your credit card limit is manageable for your financial situation. If you have any concerns, please contact us. 5. Ensure you have read your Conditions of Use booklet. 30 Understanding Interest

31

32 For more information, or to request a copy of your Conditions of Use booklet, please do not hesitate to contact us on or [email protected] BFS /13