Q: How do late fees apply to card spend and bill pay?
A: Late fees are applied to both card spending and bill payments if your account balance remains unpaid beyond the due date. To help manage your payments effectively, it's important to understand how these fees are assessed and applied.
Q: What is the late fee for an overdue balance?
A: A: If your payment is overdue, a one-time late fee of up to 2% is applied to the overdue amount. This fee may be charged starting when the balance is 10 calendar days or more past the due date, providing a brief grace period to make your payment before the fee may be assessed. If you have questions about the details of any late fees, you may email [email protected].
Q: How are payments applied to my overdue balance?
A: Payments are applied to your account in a specific order to help reduce your overdue balance efficiently. Here's how it works:
First, your payment is applied to the oldest overdue payment.
Next, if there is a late fee associated with that overdue payment, your payment covers this fee.
Then, if there are subsequent payments due, your payment is applied to the next oldest payment.
Q: Is there an exception to how payments are applied?
A: Yes, there is one exception to this rule. If the late fee for your first overdue payment and your next payment are due on the same day, the payment you make is first applied to clear the initial overdue payment. Then, before addressing the late fee, your payment is applied to the next payment due. This ensures that your payments are utilized to reduce the principal balance as efficiently as possible, helping you to manage your account better and avoid additional late fees.