What does credit card consumption interest mean?

Credit card consumption interest means that the cardholder needs to pay if he fails to repay the full amount at once before the final payment date after using the credit card. interest.

1. For example, cardholders need to pay a certain amount of overdue repayment interest, apply for a minimum repayment amount when they cannot repay in full, withdraw cash through a credit card, etc. The charging standards of different banks may also be different. .

2. Consumption interest refers to non-cash transactions in which credit card holders do not repay the entire amount payable before the due repayment date (inclusive) and no longer enjoy the interest-free repayment period. Overdraft interest is calculated from the card issuer's accounting date to the repayment date, unless otherwise agreed between the cardholder and the card issuer.

1) "Consumption interest" refers to the interest generated by insufficient payment of bills consumed in the previous period. The consumption interest is 5/10,000 per day, which is common to all banks; when using a credit card, customers will see how many days of interest-free period there are. Everbright’s maximum period is 50 days, that is, the customer repays before the repayment date after swiping the card for consumption; if the customer chooses to repay in full, there will be no interest, that is, the customer will enjoy the interest-free period; if the customer does not repay in full, he will not enjoy the interest-free period. During the interest period, penalty interest must be paid in full, that is, from the date you consume to the date you repay, you will be charged 5/10,000 interest every day. This part of the interest is called consumption interest.

2) There will be an interest-free period after credit card consumption. If you repay in full before the due date, there is no interest. The longest interest-free period for most banks is around 50 days. There is no interest for on-time installment repayment, but a certain handling fee will be charged. However, if it is overdue, there will be interest. From the repayment date to the grace period, if the user fails to pay off the current credit card bill in full, interest will be charged on the unpaid portion on a daily basis, which is called credit card consumption interest. It should be noted that the user has not repaid the loan in full, and all consumption in the current period does not enjoy the interest-free period, that is, there is no 1-day interest-free period service. Therefore, to enjoy the interest-free service, users must choose to repay in full, and repaying in full will not incur any other fees.

3) Credit cards only charge interest on withdrawals and overdrafts. Currently, all banks charge handling fees for credit card cash withdrawals, and there is no one-day interest-free period for overdraft cash withdrawals. In this way, cardholders not only have to pay tens of yuan in handling fees, but also pay overdraft interest of 5/10,000 per day. As for the reason for the credit card withdrawal fee, unlike the nature of debit card withdrawal, credit card overdraft is already a "bank loan, and of course the loan has interest."

What is the interest rate of credit card consumption?

Between the repayment date and the grace period, if the user does not pay off the current credit card bill in full, the unpaid portion will be Interest will be charged on a daily basis, and this interest is called credit card consumption interest.

It should be noted that if the user has not repaid in full, all consumption in the current period will not enjoy the interest-free period, which means that there will be no interest-free period service for one day.

Therefore, to enjoy the interest-free service, users must choose to repay in full, and repaying in full will not incur any other fees.

Extended reading

Why does interest appear on credit card bills?

Revolving interest is charged when you make repayments using a revolving line of credit or use a cash advance. If you repay all consumption payments in full before the due date of the current billing cycle, you can enjoy the interest-free period when making purchases with your card, and no recurring interest will accrue.

If you do not pay off all the current bills on time, it will be regarded as using revolving credit, and all consumption in the current period will accrue interest starting from the accounting date (usually the second day after consumption), and daily interest will be calculated. Five ten thousandths until you pay it all back.

If you use the cash advance function, the cash advance portion will not enjoy the interest-free period, and interest will be accrued from the day you withdraw the cash. The daily interest rate is 0.05%, and the compound interest is calculated monthly. Until you pay it back.

According to the notice on the issuance of the "Credit Card Business Management Measures":

Article 17: Cardholders are allowed to make overdrafts for consumption purposes within the limit and period specified in these Measures. The overdraft limit is 10,000 yuan for gold cards and 5,000 yuan for ordinary cards.

Article 18: The maximum overdraft period of a credit card is 60 days.

Article 19: Credit card overdraft interest will be calculated at a daily interest rate of 5/10,000 within 15 days from the date of signature or bank accounting. If it exceeds 15 days, it will be calculated as a daily interest of 10/10,000. If it exceeds 30 If the daily or overdraft amount exceeds the prescribed limit, the daily interest rate will be calculated at 15%. Overdraft interest is not calculated in stages, but is calculated based on the highest interest rate bracket for the final term or the maximum overdraft amount.

Article 24: All commercial banks shall charge credit card transaction fees from special units according to the following standards:

(1) For RMB credit cards, it shall not be less than 2% of the transaction amount;

(2) The credit card issued by overseas institutions and used within China shall not be less than 4% of the transaction amount.

When a domestic bank signs a credit card agency acquisition agreement with an overseas institution, the profit distribution ratio is based on the domestic bank and the overseas institution accounting for 37.5 and 62.5 of the handling fees paid by the special unit respectively.

Article 66: If a cardholder withdraws cash in violation of the provisions of these Measures, he or she shall be fined 30 to 50 RMB of the amount of cash withdrawn.

Article 67: If a cardholder violates the provisions of these Measures by renting or lending a credit card and its account, in addition to being ordered to make corrections, he or she will be fined 5 but not exceeding the amount incurred in renting or lending the account. A fine of less than 1,000 yuan will be imposed and the illegal income will be confiscated.

Article 68: If a cardholder maliciously overdrafts, he or she shall be held criminally responsible in accordance with the law.

Article 69: When accepting credit cards, the specially contracted unit shall handle it in accordance with the prescribed operating procedures. Otherwise, the financial losses caused shall be borne by the special unit.

What does credit card interest mean?

Credit card interest is the abbreviation of "credit card consumption interest". Consumption interest is the interest generated by not paying off the previous period's consumption bill in full.

1. The consumption interest is 0.05% per day, which is available in all banks;

2. When using a credit card, customers will see an interest-free period of how many days. , which means that the customer pays the bill by swiping the card and then repays before the repayment date;

3. If the customer chooses to repay in full, there is no interest, that is, he or she enjoys the interest-free period;

4. If the customer does not repay in full, he will not enjoy the interest-free period and will be charged full penalty interest. That is, from the day you consume to the day you repay, you will be charged 0.05% interest every day. This part of the interest is called consumption interest.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the specified credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases.”

Credit card is a non-cash payment method and a simple credit service. A credit card is generally a plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. The cardholder does not need to pay cash when using the credit card to make purchases. Make further repayments. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly deduct funds from the user's account.

Credit cards are issued by commercial banks to individuals and organizations. They can use them to shop and consume with specially appointed organizations and deposit and withdraw cash from banks. They are special carrier cards with consumer credit. They are in the form of a card with the card issuing number printed on the front. Cards with bank name, validity period, number, cardholder name, etc., and a magnetic stripe and signature strip on the back.

A real credit card has the following characteristics: it is not encouraged to deposit cash in advance, consume first and repay later, enjoys an interest-free payment period, can repay in installments independently (with a minimum repayment amount), join VISA, MASTER Wait for international credit card organizations to make it universally applicable.

This is the end of the introduction to what is the interest rate on credit card consumption.