Most credit card consumers pay their total outstanding or minimum outstanding after the billing date. However, some customers pay more to avoid exceeding the card limit. They will not be able to do this now.
Credit Card: Banks are continuously taking strict steps to curb fraud and money laundering through credit cards. Guidelines regarding this are also issued by RBI from time to time. Now a big step has been taken in this direction by credit card provider companies. Due to money laundering and fraud concerns, banks are either not allowing credit card users to pay more than their outstanding or are not refunding the excess amount. Most credit card consumers pay their total outstanding or minimum outstanding after the billing date. However, some customers pay more to avoid exceeding the card limit. They will not be able to do this now.
Customers living abroad may be affected
Many customers put extra money on their cards before going abroad. After this they go shopping abroad. They do this in the hope of maintaining the card limit or temporarily increasing their spending. In such a situation, bankers say that such customers can make payment immediately after purchase. The bank says that one of the reasons for not allowing parking of funds in credit card accounts is to prevent them from being used as money mules in international transactions. Along with this, in recent times, there have been cases of bank accounts being hacked and money being transferred to credit cards and international transactions being made through it. After this the bank has taken this decision. The bank says that if used wisely, the customer will not face any problem.
You can make overpayment in ICICI
Currently HDFC, SBI and AXIS Bank have prevented their customers from making overpayments. However, ICICI credit card holders can still make overpayment through the app. HDFC said in this regard that we advise customers not to keep additional credit on credit cards as they are also reviewed from the AML (Anti-Money Laundering) perspective. Under the order from the apex bank, the bank has to return the excess credit balance on the card within a specified period.
What is a credit card
A bank or any company gives a credit card to the customer on the basis of his CIBIL score. Credit card is a financial instrument that you can use for your shopping and financial transactions. This is a cash-in-kind exchange that you can make purchases at various merchant locations and use to cover your expenses. Credit cards allow you to make purchases up to a certain amount, called a “credit line.” This is based on your credit score and payment history. If you use your credit card for purchases and do not pay the expense in full when billed, it charges interest. This interest is charged on the unpaid amount and is included in your outstanding amount. On credit card you can manage your account and pay for purchases through online arrangement. Along with this, you can also make payments through it on various types of websites, online stores, restaurants.
How many days do you get to pay your credit card bill?
You are given a fixed supply time to repay the credit card bill. This usually happens from 20 to 50 days. Within this time you have to pay the bill amount in full so that you can avoid interest. If the bill is paid after the stipulated grace period, the company charges interest on the bill amount. The interest rate on credit cards is charged in the form of Annual Percentage Rate (APR). This rate ranges between 14 percent to 40 percent. If you do not pay the bill on time, the interest on the outstanding limit of your card increases. Its interest is calculated on the basis of (total days from the date of transaction x balance x monthly credit card interest rate x 12 months) / 365 days.