Credit Card: A big news is coming for the credit card users. Banks have made new rules to prevent cases of fraud and fraud through credit cards. Let us know in detail in the news below-
Banks have started taking steps to prevent fraud and money laundering through credit cards. RBI has also issued guidance in this direction from time to time. Now credit card provider companies have taken an important step in this matter.
Due to money laundering and fraud concerns, banks or credit cards are not allowing users to pay more than their outstanding or refund the excess amount. Most credit card consumers pay their total balance or minimum balance after the billing date. But some customers may be tempted to pay a higher amount to avoid exceeding the limit. This will not happen now.
Customers living abroad may be affected
Many travelers deposit extra money in their cards before going abroad. After this, they shop abroad. When doing so, they spend beyond the card limit or with the hope of financial growth. In this situation, bankers say that in this way customers can make payment immediately after purchase.
The bank claims that one of the reasons for not allowing additional deposits into 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 banks hacking accounts and sending money to credit cards and doing international transactions. After this, the bank has taken this decision. The bank claims 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 credit card is given to the customer by the bank or any company on the basis of his CIBIL score. A credit card is a financial instrument that you can use for your purchases and financial transactions. It is a cash-in-exchange form that you can make purchases at various merchant locations and use to manage your expenses. A credit card allows you to make purchases up to a certain amount, called a “credit line.” It depends on your credit score and payment history.
If you use your credit card for purchases and don’t 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 certain supply time to repay the credit card bill, which usually ranges from 20 to 50 days. Within this time, you have to pay the bill amount in full so that you can avoid interest. On payment of the bill after the fixed discount, interest is charged by the company on the bill amount.
The interest rate on credit cards is expressed as an annual percentage rate (APR), which usually ranges from 14 percent to 40 percent. If you do not pay the bill on time, interest increases on the outstanding limit of your card. This interest is calculated on the basis of days (total days since date of transaction x balance x monthly credit card interest rate x 12 months) / 365 days.
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