When an ICBC credit card is fully overdrafted and fails to repay on time, consumers will face additional overdraft interest charges. Overdraft interest arises due to failure to repay the balance within the specified repayment period, resulting in additional charges for the amount exceeding the credit card limit.
The overdraft period is usually 60 days. Once the limit is exceeded, ICBC, for example, will charge an over-limit fee of 5% for the excess, but it will only be charged once in an over-limit period. However, CITIC Bank’s policy is different and the over-limit fee may be calculated on a monthly compounding basis, which means that interest will accumulate as the period of non-repayment increases.
The calculation standard for overdraft interest is relatively clear: within 15 days from the date of signing the document or the date of bank accounting, the daily interest is 0.05%; after 15 days, the daily interest is increased to 10.00%; if it exceeds 30. days or the overdraft amount exceeds the prescribed limit, the daily interest rate will be 15%. Interest is not calculated in segments, but is calculated based on the highest interest rate bracket on the final repayment period or the maximum overdraft amount.
The interest calculation rules for ICBC Peony Credit Card (non-quasi-credit card) are as follows: Overdraft interest will be calculated at 0.05 per day for cash withdrawal and transfer transactions; other overdraft transactions such as consumption have a 25-56 day interest rate. During the interest-free repayment period, as long as the loan is repaid in full before maturity, no interest is required. However, if the interest-free conditions are not met, interest will be calculated from the bank accounting date, with a daily interest rate of 0.05 and compound interest calculated on a monthly basis. No interest will be paid on deposits in the account.
Please note that the specific interest accrual policy is subject to the "Peony Credit Card Acceptance Agreement (Personal Card)" and the bill. The above information comes from the credit card overdraft entry on Baidu Encyclopedia and the credit card interest calculation introduction on the official website of the Industrial and Commercial Bank of China.