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AIB Credit Card Payment - Interest Issue

atlantean · 2011-02-26 00:29:42

I always pay my credit card statement in full each month so as to avoid paying the dreaded interest but last month I appear to have come unstuck! Basically I assumed that a credit payment (form a returned purchase) would go towards my monthly payment so I deducted the amount of the credit form my total payment and payed…

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26-02-2011 1:29am

#1

atlantean

Registered Users Posts: 556 ✭✭✭

Join Date: November 2004

Posts: 498

I always pay my credit card statement in full each month so as to avoid paying the dreaded interest but last month I appear to have come unstuck!

Basically I assumed that a credit payment (form a returned purchase) would go towards my monthly payment so I deducted the amount of the credit form my total payment and payed what I thought was the remaining balance — then I get my next statement which said I did not make the payment in full and have been hit with €17 interest :mad:

To explain this a bit clearer say my January statement had a balance of €1000 which was due for payment on the 5th of February. Then on the 12th. of January my account received a credit payment of €100. This was for an item purchased in December but then returned to the seller.

When I came to pay on the 5th of February I only transferred €900 into the credit card account as €100 had been added earlier which made a total of €1000 going into the account since the statement was issued!

The €100 credit then appeared on my most recent statement along with my payment of €900 but also with the interest due to me not actually paying €1000!

Can anyone explain why a credit on a previous purchase is not considered as part of an overall payment as ultimately it will reduce the balance on the credit card?

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