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: If your payment is overdue, a late fee will be applied based on the frequency of late payments:
1% when your first late payment reaches 7 days past due
2% when your second late payment reaches 7 days past due
5% for your third and any subsequent late payments reaching 7 days past due
This structure allows a brief grace period before fees are assessed. If you have any questions about late fees, please 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.