MBNA Amazon credit card INTEREST charge?
However, on this new MBNA Amazon credit card I was charged a few dollars and the description was 'INTEREST CHARGE'. This charge happened on June 09, and the May statement was fully paid as soon as the statement was posted.
Looking at their website, I found this:
From my understanding, they charge you interest on all payments for as long as they are in your balance, regardless if you make the full statement payment or not? Is this really different than other credit cards? I have never seen interest charge in any of my credit cards, and I only make payments when the statement is posted. Or am I missing something here?Because customers borrow money for varying amounts of time, banks review account balances daily to ensure customers are only paying for the time they borrowed the money. Therefore, banks commonly charge interest on a compound daily calculation. Each day, they typically review the balance, charge a View DetailsDaily Interest Rate (DIR) to it, if applicable then charge the subsequent day’s interest based on that day's balance plus incurred interest. This computation continues daily for the entire month's View Detailsstatement billing cycle.