SBI Credit card shocking Financial charges

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Last Comment 2022-12-25

2021-12-15

Hi Dimers, For my SBI credit card I got a credit card statement today which shows an entry related to FIN CHARGES ON Retail of Rs 1347 + GST. I got a total amount due as 44082 in statement generated on 13rd Nov which was supposed to be payed by 3rd Dec. I got a refund of 1771 on 20 Nov and I payed balance amount of 42311 on 27 Nov so my total payment before due date was 1771+42311 which equals the total due amount but today its shocking to see this financial charges of 1559 in december's which is frustrating me. This is my third month with SBI credit card. Never faced any such issues with other credit cards. Please suggest guys as I am clueless

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https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8144638

atx88

2021-12-16

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It is surprising so many dimers here do not know how interest is charged on credit cards! Come on guys... If bill was 44k and you paid 42k, then interest is charged ONLY on the balance amount of 2k and NOT on full 44k of that bill. (but this is part 1 of charges) Part 2 of charges are on the txns done after that statement date. Since full amount is not paid, every transaction done after statement generated is charged interest on. So basically that means since u did not pay full amount for Nov bill, all txns of Dec bill got charged with interest. So the total interest/financial charges you got charged are actually based on your Dec bill txns mostly. (And this is where the trick of looting by credit card companies lie.) Here is an example of how it works: txn #1: 15 oct: ₹10,000 txn #2: 20 Oct: ₹22,000 txn #3: 28 Oct: ₹8,000 txn #4: 11 Nov: ₹4,000 13 Nov statement generated with ₹44,000 bill, due date 3 Dec txn #5: 15 Nov: ₹16,000 txn #6: 18 Nov: ₹20,000 txn #7: 20 Nov: -₹2,000 (refund) 27 Nov: ₹42,000 paid out of ₹44,000 txn #8: 5 Dec: ₹16,200 txn #9: 11 Dec: ₹2,200 13 Dec statement generated with XYZ bill, due date 3 Jan XYZ bill = txn4 (₹2,000 balance) + txn5 + txn6 - txn7 + txn8 + txn9 + interest @ 3.5% per month on all these txns. (txn 7 is subtracted because its a credit txn) This example matches somewhat to OP's bills and dates. Here, since full amount was not paid on 3 Dec and refund is not considered as payment, txn4 is considered as incomplete payment and interest will be charged on it for ₹2000 amount, not full ₹4000 as only ₹2000 was paid less. But additionally, as per rules, txn 5, 6, 8 and 9 are also charged interest on because all of them were done after Nov statement generation which wasn't fully paid till next statement generation. Since ₹2000 was paid on 20 Nov, it will be counted as a payment in Dec statement and settled against the first unpaid txn in datewise order. Now datewise, first unpaid txn is txn4, so this ₹2000 will be settled against txn4 and interest on txn4 will be counted from 11 Nov to 20 Nov, ie, 9 days. = ~ ₹21 Interest on txn #5 = 15 Nov to 13 Dec = 29 days = ~ ₹541.33 Interest on txn #6 = 18 Nov to 13 Dec = 26 days = ~ ₹606.7 Interest on txn #8 = 5 Dec to 13 Dec = 9 days = ~ ₹170.1 Interest on txn #9 = 11 Dec to 13 Dec = 3 days = ~ ₹7.7 This totals the finance charge = ~ ₹1347 and total Dec bill would be around ₹54,400 + ₹1347 = ₹55,747 as per this example. So you see one thing here: Actual interest for ₹2000 less payment was ₹21 only... Remaining ₹1325 was bank magic joy

Now, you may think ₹2000 was refunded on 20th and counted in the Dec bill, then why interest charged on txn after 20th Nov. So here is the thing, if u do not pay full bill of any month, all txns after it will be charged interest until any of two conditions are met (whichever happens earlier): 1 -> either next bill generates, or 2 -> full due amount is paid (including unbilled) on any date before statement generates So lets take any date, say 25th Nov, total balance pending till then was txn4 (₹2000 balance) + txn 5 + txn 6 = ₹38,000. So if u had paid this full balance of ₹38,000 on 25th Nov, interest addition would have stopped on 25th Nov itself. But since it was not paid, it got dragged till the next statement generation date of 13 Dec. I know this is huge and complex, but this is how the calculation is done.

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8142362

Awesome_Deepak

2021-12-15

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Refund not counted as payment. So u should paid full amount. Ask customer care to refund the charges. If they don't refund simply say u want to close this card then they definitely refund the charges.

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8142398

Manitian

2021-12-15

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If you don’t pay full amount, they charge interest on full amount … Many other cards do the same. Just call and ask them to reverse as one time mistake … And always pay full amount.
Have tried this approach and it works mostly …

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https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8146598

hpgramani

2021-12-17

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budweiser wrote:
What if a high value purchase, say 1L, is cancelled & refunded after the statement generation date? Paying the statement amount will result in a credit of 1L. How to transfer it back to the bank a/c? And how to claim interest on it?

I think if the unbilled amount is in negative and in huge amount like in this example, the Customer care would refund the money to the savings account but they won’t give a single penny as interest to the customer.

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8148054

atx88

2021-12-17

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budweiser wrote:
What if a high value purchase, say 1L, is cancelled & refunded after the statement generation date? Paying the statement amount will result in a credit of 1L. How to transfer it back to the bank a/c? And how to claim interest on it?

yeah nothing can be done… you have to call bank cc and request for reversal to source account. This is something they can do. But no interest will be provided. Its one way street there grinning

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8148064

kshmr

2021-12-17

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Rockstar008 wrote:
But in icici, HDFC, Axis refunds are considered as payments. Whats wrongs with SBI??

In HDFC is refund considered as payment. Can someone clarify?

I ordered a phone worth 21k from Croma. Cancelled it. Statement got generated for 21k. Refund will come in next few days. Do I need to pay the entire statement amount in this case?

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8148800

atx88

2021-12-18

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kshmr wrote:
In HDFC is refund considered as payment. Can someone clarify?

I ordered a phone worth 21k from Croma. Cancelled it. Statement got generated for 21k. Refund will come in next few days. Do I need to pay the entire statement amount in this case?

imo you don’t need to pay full amount, but pay the min due amount in this case.
Although your net outstanding is zero, but the system checks that no payment has been made from customer end hence charges are levied sometimes.

Here is screenshot of my June 20 statement. I made a purchase of 24k on amazon and bill got generated of 24k. https://ibb.co/p...TH

And here is screenshot of my July 20 statement. https://ibb.co/M...NS
You can see that amazon txn from last statement has been refunded in this statement, but I nowhere paid that 24k. And no finance charges have been levied. But I did pay min due of 1210 (no idea why I paid that twice!).

Hope this helps and I hope they won’t but please don’t hold me responsible in case they changed policy in last 1.4 year and charge you joy

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8148803

kshmr

2021-12-18

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atx88 wrote:
imo you don’t need to pay full amount, but pay the min due amount in this case.
Although your net outstanding is zero, but the system checks that no payment has been made from customer end hence charges are levied sometimes.

Here is screenshot of my June 20 statement. I made a purchase of 24k on amazon and bill got generated of 24k. https://ibb.co/p...TH

And here is screenshot of my July 20 statement. https://ibb.co/M...NS
You can see that amazon txn from last statement has been refunded in this statement, but I nowhere paid that 24k. And no finance charges have been levied. But I did pay min due of 1210 (no idea why I paid that twice!).

Hope this helps and I hope they won’t but please don’t hold me responsible in case they changed policy in last 1.4 year and charge you

Thanks bro for such detailed explanation !!

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8152770

neo13

2021-12-20

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Rockstar008 wrote:
But in icici, HDFC, Axis refunds are considered as payments. Whats wrongs with SBI??

I got 169 as grab deal amount in Axis Myzone after statement generation. But while paying bill, I just paid entire statement payment. Now it is showing as -169 in Axis dashboard. Not sure how refunds works in Axis.

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8977199

AUser

2022-12-18

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Rockstar008 wrote:
They are saying after 6 months they can try for reversal subject to approval

Did you try after 6 Months ,were you able to get the refund,am also facing similar issue

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8977269

Rockstar008

2022-12-18

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AUser wrote:
Did you try after 6 Months ,were you able to get the refund,am also facing similar issue

Yes just call them in 7th month and they will do.

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8977315

AUser

2022-12-18

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Rockstar008 wrote:
Yes just call them in 7th month and they will do.

Thanks ,

will they also refund Charged GST

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8977354

Rockstar008

2022-12-18

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AUser wrote:
Thanks ,

will they also refund Charged GST

Yes everything

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8987798

AUser

2022-12-24

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Can someone suggest what i missed here,

last month i got some Fin charges of 2300rs approx and as confirmed here and from Customer support that charges can't be reversed for less than 6 month old card, i paid entire amount (visible total dues in statement a day before)

but in this month i again got fin charges of rs 83.

not sure what i missed

bill amount was 4007 something i paid 4008 1 day before due date , still got charges.

(As per statement page i cal clearly see that Purchases was 4006.60 Payment 4008)

https://www.desidime.com/discussions/sbi-credit-card-shocking-financial-charges?page=3#post_8988082

chiraggyl170

2022-12-25

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AUser wrote:
Can someone suggest what i missed here,

last month i got some Fin charges of 2300rs approx and as confirmed here and from Customer support that charges can't be reversed for less than 6 month old card, i paid entire amount (visible total dues in statement a day before)

but in this month i again got fin charges of rs 83.

not sure what i missed

bill amount was 4007 something i paid 4008 1 day before due date , still got charges.

(As per statement page i cal clearly see that Purchases was 4006.60 Payment 4008)

These charges are interest amount for your last month's late payment..