How is my ASB credit card interest calculated and charged?

Interest is calculated on the daily balance of your credit card account on the last day of your statement. Different interest rates apply to different types of transactions.

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

1. The first is interest on transactions where you have purchased goods and services. If you purchase goods or services with your credit card, and you don’t pay the full amount of your statement closing balance by the due date, you’ll be charged interest on the outstanding balance. We also charge purchase interest on offshore service margins, ASB retail exchange margins and balances transferred between existing ASB credit card accounts.

For purchases, you can get up to 55 days interest free on personal credit cards or up to 50 days interest free on business credit cards. If you pay the full amount of your statement closing balance by the payment due date, you will not be charged interest on purchases on that statement. You are charged interest on the portion of the closing balance that is unpaid purchases from two or more statements ago.

If you do not pay the full statement closing balance by the due date, you are charged interest for the statement period.

2. The second is cash advance interest which is charged when you get cash from your credit card account (e.g. a cash advance through an ATM withdrawal or a transfer through FastNet Classic). We also charge cash advance interest on dishonoured payments. These are transactions that were declined by us or another bank for example because you had insufficient funds in your account or your bank account was closed.

You are charged interest on the daily balance of the cash advance or dishonoured payment, from the date of the transaction until the date the amount is paid in full. 

3. The third is interest charged on a credit card balance transferred from another non-ASB New Zealand issued card to an ASB credit card (excluding Visa Business). The balance transfer interest rate will be charged on the balance transferred for the term of the balance transfer. Any outstanding balance at the end of this period will be charged at the applicable standard purchase rate.

You are charged interest on the daily balance of each balance transferred from the date of the balance transfer until the date the amount is paid in full.

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

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