If you fail to pay your entire credit card bill by the due date, you will be charged interest on the entire outstanding amount. This will happen even if you have made a part payment. For example, if you have paid ₹30,000 on a bill of ₹50,000, you will be charged interest on the entire ₹50,000 till a fresh payment is made and a new credit card statement is generated.
"If the entire bill hasn't been cleared, then there's a problem. Interest will be levied on the complete amount, till the first payment. Interest on balance amount will be levied for the remaining days till the new statement is generated," said Adhil Shetty, chief executive officer, Bankbazaar.com, an online marketplace for financial instruments.
Let's assume your billing cycle is 30 days and you shop on 5 June for ₹30,000. On 25 June, you get your statement for which the due date for payment is 10 July. Now, on the due date let's suppose you pay only a portion of the bill, say ₹20,000 instead of ₹30,000. You will be charged interest on the entire ₹30,000 from 5 June to 10 July (35 days).
Another way of understanding this is that the standard interest-free period of 30-40 days gets terminated. In addition, you will also be charged goods and services tax (GST) at the rate of 18% on the interest amount and any penalty charged by the bank, Shetty said.
When you make fresh purchases on your credit card in the new cycle, say you buy something worth ₹5,000, interest gets added on that too. Now, as usual, you get the new statement on 25 July. Here you realize that you have paid interest on the ₹30,000 outstanding on the previous bill and on the fresh purchase you made in July.
Experts recommend that you should pay your entire credit card bill on time to avoid this hefty interest charge. Alternatively, covert your unpaid amount to equated monthly instalments (EMIs) if you do not have the financial ability to pay.
Conversion to EMIs can help avoid interest on the part paid amount that gets levied in case of outstanding dues, said Shetty.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
@SBabaSkincare yeah, split payments are available in the Appointments app. There are various posts on this thread with screenshots and direct links to our Support article that explains where and how to split payment. Feel free to scour through.
Justin
Community Moderator, Square
Sign in and click Mark
as Best Answer if my reply answers your question.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
Best Answer
It's easy!
Click "Charge" once you've rung in all your items. Choose "Split" in the top right corner. Add Cash. Enter the amount of cash (10.00) and choose Tender. The drawer will open, allowing you to put the cash away. Choose weather you need a receipt for the cash transaction.
Then, you will be prompted to fulfill the remaining balance. At this point, you can swipe the credit card to charge the remaining $40.00. Choose "Tender" and it will process. You are then given the option to print a receipt for the credit card transaction.
Your done!
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
That only work if you aren't collecting tips.
If you do collect tips, the cash portion won't be included, and the credit card bill will reflect a much smaller balance.
In your example, the $10 in cash comes right of the top, and the customer will tip on the remaining $40 only, not the $50 total bill.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
Helen
11-12-2018 04:00 PM
@theruggedwillow Sorry to hear about the trouble!
You should see the option to split a payment right after you add an item to the sale/enter a custom amount and tap Charge.
After you tap charge you'll see Split Amount in blue in the upper right:
If you don't see this option I recommend making sure that your Point of Sale app is up to date, and make sure the software on your device on your device is up to date too.
Helen
Seller Community Manager, Square
Did you find help in the Seller Community? Mark a Best Answer to help others!
Find step-by-step help in our Support Center
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
Some my customer try to pay me some cash and credit card, but when I put the tender amount on cash is not working. The tender button didn't show up. I don't know whats wrong. Pls advice, thanks.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
Hi: I own a a travel agency and I'm allowing a good client to be in installments. I sent an invoice with the total amount, however, I'm only requesting that they pay a downpayment and the balance in June. It's not allowing them to do that. Is that posssible? Many thanks!
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
OK, so say two customers "share" lunch. The total is 32.45.
Customer one has only 12.00. Customer two gets stuck with the rest, $20.45.
Customer two pays with credit/debit and is not willing to take the cash from customer two. customer one has cash, $12.00. How do I enter this payment as a "split" without being forced to split it down the middle. I need two payment options on one bill...I can't seem to get this..
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
Hey @KLGYROS
I moved you to a thread that should help, as it walk through how to split a payment any way you want.
Justin
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report