Frequently asked questions: Credit card
1. What is the difference between available balance and latest balance?
Your available balance is the actual amount of funds available for you to spend. Your latest balance includes any outstanding authorisations that are reserved by a merchant.
For example, your latest credit card balance may be R1 500, but your available balance may only be R1 000. The additional R500 is one or more transaction reserved for a merchant by the bank and, therefore, the amount is not available for you to spend. Any transaction that is reserved is referred to as an outstanding authorisation.
2. What is an outstanding authorisation?
When your credit card is used for a purchase, the purchase amount is set aside for payment to the merchant, making the purchase amount unavailable for you to spend. When the merchant then “banks” the transaction, the funds will be settled, and the authorisation will fall away. The term “banked” refers to the clearing of the transaction amount into the merchant’s bank account.
3. What is the difference between a finance charge and a cash finance charge as it appears on my credit card statement?
A finance charge is the amount of interest calculated on your balance owing. Interest on a credit card is the cost of borrowing money from the credit card issuer, which is the bank. A cash finance charge is the interest calculated on a cash transaction.
4. Why is the cash finance charge still charged within the 55-day interest-free period?
The 55-day interest-free period only applies to purchase transactions, whether these are done in person (through a card machine) or through e-commerce/m-commerce (online). Cash transactions will attract interest charges from the time the transactions are performed.
5. What transactions are considered as cash and contribute to my cash finance charge?
- Cash advances/withdrawals
- Electronic transfers and account payments
- Purchases of travellers’ cheques
- Petrol purchases
- Online gambling
- Purchase of casino chips
- Purchase of foreign exchange
6. How does the 55-day interest-free period work?
Your credit card gives you a 55-day interest-free period to pay back the money spent on your card, meaning you won’t be charged interest on your outstanding balance if you pay the closing balance (as reflected on your statement) in full by the payment due date. Your statement cycles over a 30-day period.
You are granted 25 days after your statement cycle to settle the closing balance in full to benefit from the 55-day interest-free period. For example, if you perform transactions from 1 to 31 July, your due date for the full outstanding balance on your credit card will be 25 August. Should your balance not be settled in full, interest will accrue and be charged. Please note that the 55-day interest-free period does not apply to cash transactions.
7. What are the different interest charges that I can incur on a credit card?
Interest is calculated and charged for:
- purchases (straight facility)
- cash transactions
- budget transactions (purchase transactions taken over 3, 6, 12, 24 or 36 months)
Therefore, you can have three different interest charges if you have performed transactions in each of these categories and if you do not settle your card balance in full within the 55-day interest-free period.
8. How is my repayment allocated when I’ve performed transactions in more than one of these categories, i.e. straight, budget or cash transactions?
Your repayment amount will be allocated based on the amounts owing in each category in the following sequence:
- First, purchase transactions done through the straight facility
- Second, purchase transactions done through various budget facilities
- Third, cash transactions done through the cash finance facility
For example, if you have made a purchase of R100 using the straight facility, a purchase of R200 using the budget facility, and a cash withdrawal of R50, your total repayment amount will be R350.
If you make a repayment of the full outstanding amount of R350, it will be allocated as follows:
- R100 into the straight facility
- R200 into the budget facility, and
- R50 into the cash finance facility
However, if you make a partial or minimum repayment instead of the full outstanding amount, then the funds will be allocated in the abovementioned sequence. Thus, if you make a repayment of only R100, it will be allocated as follows:
a. R100 into the straight facility
b. R0 into the budget facility, and
c. R0 into the cash finance facility
The outstanding amounts of R200 in the budget facility and R50 in the cash finance facility will remain and continue to attract interest charges. The straight facility will not incur additional finance or interest charges unless another purchase is made through it.
- R100 into the straight facility
- R0 into the budget facility, and
- R0 into the cash finance facility
The outstanding amounts of R200 in the budget facility and R50 in the cash finance facility will remain and continue to attract interest charges. The straight facility will not incur additional finance or interest charges unless another purchase is made through it.
9. What is an international transaction fee?
“Intl. Tran. Fee” stands for “international transaction fee”, which is billed to cover the cost of facilitating an international transaction. This fee is charged when you use your Standard Bank Credit Card to make a purchase from a service provider outside of South Africa.
10. What is the international transaction fee percentage charged and when does it apply?
A fee of 2,75% of the Rand value of the transaction is charged. For example, if you make a purchase internationally and the value of the transaction amount in Rands equals to R100, then the fee will be R2,75. This fee will apply whenever you make an international purchase, whether in person (at international merchants while you are travelling abroad), or through e-commerce at international merchants, for example:
- If you travel to the USA and you use your card to purchase an item at a store
- If you use your card in South Africa to purchase an item online, such as a subscription from Netflix
11. Why do I see my balance and credit limit reflecting as zero?
If you see your balance and credit limit reflecting as zero, it usually means that Standard Bank is processing system updates. During allocated times for system updates, you will not be able to view any credit card transactions on your Banking App or on Online Banking. However, even though your balances reflect as zero, your funds are secure and available to you. Your card will continue to remain active for purchases at merchants, whether you do them in-person or through e-commerce.