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Payments, Fees, & Interest

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What happens if a customer makes a late payment?

Late payments may result in fees and could negatively impact the customer’s credit score. When a customer fails to make a payment by the due date, they may incur additional charges known as late payment fees. These fees are designed to incentivize timely payments and compensate for the inconvenience caused to the lender. Moreover, late payments can have a detrimental effect on the customer’s credit score, which is a numerical representation of their creditworthiness. A lower credit score can make it more difficult for the customer to obtain loans, credit cards, or other forms of credit in the future.

CSR Process:

  1. Explain Fee: Inform the customer of the standard late payment fee (currently $$$ [Amount]) and advise that it will be applied to their account. The customer service representative (CSR) should clearly communicate the amount of the late payment fee to the customer. This fee is a predetermined charge that will be added to the customer’s account as a consequence of the late payment.

  2. Waiver Policy: Review the customer’s account history. If this is the customer’s first late payment within the last Date, the CSR may issue a one-time goodwill fee waiver. The CSR should examine the customer’s account history to determine if this is their first instance of a late payment within a specified timeframe. If it is, the CSR has the discretion to waive the late payment fee as a gesture of goodwill. This waiver is typically a one-time exception and is not guaranteed for future late payments.

  3. Payment Arrangement: Assist the customer with making an immediate payment or setting up a future payment date. The CSR should work with the customer to facilitate an immediate payment to bring their account current. If the customer is unable to make an immediate payment, the CSR can help them set up a future payment date to ensure timely payment in the future.

How is the interest on the credit card calculated?

Interest is calculated using the card’s Annual Percentage Rate (APR) applied to the average daily balance. The interest charged on a credit card is determined by the card’s Annual Percentage Rate (APR), which is the cost of borrowing money on an annual basis. The APR is applied to the average daily balance, which is the sum of the daily balances divided by the number of days in the billing cycle. This method ensures that interest is calculated based on the actual amount of credit used over the course of the billing period.

The standard calculation method is:

[Interest Calculation Formula]

Where can a customer find a detailed list of credit card fees?

A complete list of credit card fees—including annual fees, late payment fees, and foreign transaction fees—is available in the Cardholder Agreement.

Customers can access the Cardholder Agreement through:

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