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Message: <blockquote data-quote="dil4N" data-source="post: 24104212" data-attributes="member: 529208">This is from HSBC FAQ, Same scene for COM Bank too. How is finance charges calculated?If you've not settled the total closing balance by the Payment Due Date, the total Closing Balance on the Statement Date shall attract a Finance Charge, calculated daily on each card Transaction from the original date of the transaction until the date on which the total Closing Balance is settled, at a rate to be determined by the Bank. The Finance Charge shall be debited to the Card Account on the subsequent Statement Date.Transaction Date Narration Amount1 December 2017 Opening balance Rs150,000.0010 December 2017 Purchase Rs10,000.0020 December 2017 Purchase Rs25,000.001 January 2018 Closing Balance Rs185,000.0010 January 2018 Payment made Rs20,000.0022 January 2018 Payment made Rs15,000.00 Scenario 1: Calculation of interest applicable when a partial payment is madeInterest will be calculated as follows: Interest calculation for the transactions:a) Rs.10,000.00 X 2.33% X 12/365 X 23 days (10 December 2017 - 1 January 2018) = Rs.176.44b) Rs.25,000.00 X 2.33% X 12/365 X 13 days (20 December 2017 - 1 January 2018) = Rs.249.32 Interest Component 1 = (a + b) Rs.425.76 Interest calculation for the statement outstanding balance:c) Rs.185,000.00 X 2.33% X 12/365 X 8 days (2 January - 9 January) = Rs.1,135.34Interest Component 2 = Rs.1,135.34 Interest calculation for the period after the payments was made up to the next statement date:d) Rs.165,000.00 (Rs.185,000.00 - Rs.20,000.00) X 2.33% X 12/365 X 12 days (10 January -21 January) = Rs2,911.23e) Rs.150,000.00 (Rs.165,000.00 - Rs.15,000.00) x 2.33% X 12/365 X 11 days (22 January - 1 February) = Rs.1,495.89Interest Component 3 = (d +e) Rs.4,407.12Total interest = Interest 1 + Interest 2 + Interest 3 =425.76+1,135.34+4,407.12 = 5,968.22  Scenario 2: Calculation of interest applicable for cash advances, when the Minimum Payment is madeCustomer pays the Minimum Payment Due (Rs.7416.00 - 4% from the outstanding balance as at 1 January) on the due date (22 January) as stated above. Also consider that the 10 December 2017 transaction as a cash advance Rs10,400.00 (Total amount Rs10,000.00X4% (400) Cash advance fee = Rs10400.00)Interest will be calculated as follows: Interest calculation for the transactions:a) Rs.10,400.00 X 2.33% X 12/365 X 23 days (10 December - 1 January) = Rs.183.50 (Cash advance)b) Rs.25,000.00 X 2.33% X 12/365 X 13 days (20 December - 1 January) = Rs.249.32Interest Component 1 = (a + b) Rs.432.82 Interest calculation for the statement outstanding balance:c) Rs.10,400.00 X 2.33% X 12/365 X 20 days (2 January - 21 January) = Rs.159.56 (Cash advance)d) Rs.175,000.00 X 2.33% X 12/365 X 20 days (2 January - 21 January) = Rs.2,684.93 (Purchases + Opening balance as at 1 JanuaryInterest Component 2 = (c + d) Rs.2,844.49Interest calculation for the period after the first payment on 22 January up to the next statement date:e) Rs.2984.00 (Rs.10,400.00 - Rs.7416.00) 2.33% X 12/365 X 11 days (22 January - 1 February) = Rs.25.18 (Cash advance)f) Rs.175,000.00 x 2.33% X 12/365 X 11 days (22 January - 1 February) = Rs.1,476.71 (Purchases + Opening balance as at 2 February)Interest Component 3 = (e + f) Rs.1,501.89Total interest = Interest 1 + Interest 2 + Interest 3 = 432.82+2,844.49+1,501.89=4,779.20 Scenario 3: Calculation of interest when the payment is made after the due dateCustomer pays Rs.10,000.00 of the outstanding balance on 24 January (payment due date as per the example is 22 January).Note: If the Minimum Payment is not paid on or before the due date, the credit card Account will be levied with a Late Payment Fee of Rs.990.00 along with interest.Interest will be calculated as follows:Interest calculation for the transactions:a) Rs.10,400.00 X 2.33% X 12/365 X 23 days (10 December - 1 January) = Rs.183.50 (Cash advance) b) Rs.25,000.00 X 2.33% X 12/365 X 13 days (20 December - 1 January) = Rs.249.32Interest Component 1 = (a + b) Rs.432.82Interest calculation for the statement outstanding balance:c) Rs.10,400.00 X 2.33% X 12/365 X 22 days (2 January - 23 January) = Rs.175.52 (Cash advance)d) Rs.175,000.00 X 2.33% X 12/365 X 22 days (2 January - 23 January) = Rs.2,953.42 (Purchases + Opening balance as at 1 January)Interest Component 2 = (c + d) Rs.3,128.94Interest calculation for the period after the first payment on 24 February up to the next statement date:e)Rs.400.00 (Rs.10,400.00 - Rs.10,000.00) X 2.33% X 12/365 X 9 days (24 January - 1 February) = Rs.2.76 (Cash advance))f)Rs.175,000.00 x 2.33% X 12/365 X 9 days (24 January - 1 February) = Rs.1208.22 (Purchases + Opening balance as at 1 January)Interest Component 3 = (e + f) Rs.1210.98Total interest = Interest 1 + Interest 2 + Interest 3 + Late Payment Fee 990.00 = 432.82+3128.94+1210.98 + 990 (Late Payment Fee) = 5,762.74Ref : <a href="https://www.hsbc.lk/1/2/personal/credit-card/credit-cards-faq" target="_blank">https://www.hsbc.lk/1/2/personal/credit-card/credit-cards-faq</a></blockquote>

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