1. Home
  2. / Dost and Dimes
  3. / SBI Credit card shocking Financial charges
Hot Deal

SBI Credit card shocking Financial charges

Reply
1148°
Deal Cadet
Rockstar008
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
Top Comments
Deal Cadet Deal Cadet
Awesome_Deepak
Link Copied
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.
Like Heart 10
Critic Critic
cadence
Link Copied

So If I have 5000 refund processed after bill generation but before due date still I’ll have to pay additional 5000 ? Thus making the card balance -5000..
Benevolent Benevolent
caks2006407
Link Copied
Correct "@Rockstar008":https://www.desidime.com/users...76 U still do not understand how interest is calculated for CC spends, pls go thru details If u do not clear total amount due by due date, then they start charging interest(from purchase date) for every purchase in that statement plus penalty and GST over all these charges. Interest charges are roughly 3% per month and GST is 18% so calculate urself If refunds are counted as payment then we can keep rolling our debt without paying ever like for eg u have 10K dues after bill generation now place order for 10k in FK/Amazon and cancel it so system counts that 10K refund as payment and generated 10K bill again next month, repeat same every month; so they flatly do not count card txn related refunds as payments; cashbacks or RP en cashment etc are counted as payment
Like 5
Generous Generous
atx88
Link Copied
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.
Like Heart 14
73 Comments  |  
35 Dimers
  • Sort By
Deal Newbie Deal Newbie
AUser
Link Copied

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)
Helpful Helpful
chiraggyl170
Link Copied

These charges are interest amount for your last month's late payment..
Deal Cadet Deal Cadet
budweiser
Link Copied

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?
Like 2
Deal Cadet Deal Cadet
hpgramani
Link Copied

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.
View 1 more reply
Generous Generous
atx88
Link Copied
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.
Like Heart 14
Deal Cadet Deal Cadet
Rockstar008
Link Copied

Its very complex to understand man.. anyways now I got a bill of 1600 to pay.. should I clear it at the earliest as they might be incurring interest on this too or I can wait till 2nd Jan 2022 which is my deadline to pay as I am still fighting with them. Please suggest
View 15 more replies
Deal Subedar Deal Subedar
rak007
Link Copied

OP take it as a lesson learnt and make sure you always pay full.
Blogger Blogger
Scorpion
Link Copied
I can see some threads in last few months with the same issue with different cards. Always it is better to pay the full due amount irrespective of Cashback / Refund received, unless you are planned to close the card in the upcoming month. For Banks, this is the main source of income (That too for LTF cards), They will waive once for some customers. This is the business for them. So they will not let it go. The received Cashback / refund anyways we can use it in the new billing cycle. Unless the amount is more than 10000, i think it is manageable for most of us.
Like 2
Blaze Blaze
ankurmahajan
Link Copied

Same did happen with me. SBI doesn’t consider refund as Payment. Can’t do much about tha.
Deal Cadet Deal Cadet
Rockstar008
Link Copied

Did they reverse your charges??
View 8 more replies
Benevolent Benevolent
UnderNation
Link Copied
In icici credit card, Every Transaction Mail, They Will Mention Clearly As, Refunds Will Not Be Considered As Peyment, Kindly Pay All The Bills Before Due Date... Better To Use RENT Pay Option, Rotate Money And Pay To Credit Card With Minor Charges
Like 2
Deal Captain Deal Captain
Cody
Link Copied
u need to pay whatever due appears in the statement, you should not do your calculations here. And the refund balance would be adjusted in the next cycle. Nothing wrong with SBI, it's a regular thing. And suppose if your due is 44082 and you pay only 42311 then interest would be charged on the whole amount which is 44082. Better change the title, it's misleading.
Like 4
Deal Cadet Deal Cadet
Rockstar008
Link Copied

I have been following the process of adjusting the refund for other cards and never faced any issue. This is the first kind of issue I have faced in last 12 years.
Like 1
View 1 more reply
Deal Cadet Deal Cadet
JJ021
Link Copied

can’t blame sbi ,it is the lack of knowledge of person.
Like 2
Deal Cadet Deal Cadet
aniket1587
Link Copied

there is nothing shocking about sbi rule,
what shocking is we dont know that refund isnt considered as payment…
Like 1
Deal Cadet Deal Cadet
Rockstar008
Link Copied

Never happened to me with other banks. I always pay the outstanding amount for other banks
Deal Subedar Deal Subedar
pikkuboss
Link Copied

Take time to read T&C before applying for CC. Be relieved that you have paid the minimum amount so your Cibil score won’t be impacted. Call CC and get a one time reversal.
Like 1
Deal Cadet Deal Cadet
Rockstar008
Link Copied

They are since you have not completed 6 months reversal is not possible sad
View 3 more replies
Deal Cadet Deal Cadet
Rockstar008
Link Copied

Very bad experience for me. I have been using credit cards from last 11 years but never faced this issue and just started my journey with SBI and they gave me shock in just 3 months. Now they are saying reversal is not possible as you have not completed 6 months. They tried to take the request but it got rejected and I got following message-

Dear SBI Cardholder, we regret to inform that your request XXXXXXXXXXX for Finance Charges Reversal of Rs. 1347.67 on your SBI Credit Card ending XXXXXXXXXXXXXX couldn’t be processed due to our internal policy.

What to do now??? I am really frustrated with them.
Deal Subedar Deal Subedar
Nighthawk69
Link Copied

Tricky card calculations.
Critic Critic
cadence
Link Copied

So If I have 5000 refund processed after bill generation but before due date still I’ll have to pay additional 5000 ? Thus making the card balance -5000..
Benevolent Benevolent
caks2006407
Link Copied
Correct "@Rockstar008":https://www.desidime.com/users...76 U still do not understand how interest is calculated for CC spends, pls go thru details If u do not clear total amount due by due date, then they start charging interest(from purchase date) for every purchase in that statement plus penalty and GST over all these charges. Interest charges are roughly 3% per month and GST is 18% so calculate urself If refunds are counted as payment then we can keep rolling our debt without paying ever like for eg u have 10K dues after bill generation now place order for 10k in FK/Amazon and cancel it so system counts that 10K refund as payment and generated 10K bill again next month, repeat same every month; so they flatly do not count card txn related refunds as payments; cashbacks or RP en cashment etc are counted as payment
Like 5
Benevolent Benevolent
akki.akki
Link Copied

that is why credit card is called as most risky loan.
Like 3
Pro Community Angel Pro Community Angel
deb4O5
Moderator
Link Copied
"@whitewalker":https://www.desidime.com/users...93 Have a look at this and double confirm your dues now (if skipped). Seems they have fixed it now. However, you can still pay the full amount (additional 2 days after due date) to avoid fin chg or even ask them to refund this for the 1st time. Pls hurry up!
Deal Lieutenant Deal Lieutenant
whitewalker
Link Copied

Thanks. I took the risk and paid only minimum due. I will ask cc today and pay the remaining if required.
Like 1
View 1 more reply
Deal Cadet Deal Cadet
desiviru
Link Copied

Currently even in ICICI/HDFC reversals are not counting and auto-debit deducting full amount. All depends on statement generation. If refund was before statement generated, it will be less from total amt but if next day of statement generation then you need to pay full. Like Total due- Rs.10000. Refund received- Rs.1000. Statement generated without this refund. You can’t assume to pay 9000 now and count this 1000 as credit because this was not counted in previous statement. In next statement it will put Finance charges on rest 1000 even though there is credit entry of refund.
Like 4
Deal's Advocate Deal's Advocate
CostalWaves
Link Copied

I am also paid due in full but showing 2000 finance charges in September month statement.
Deal Lieutenant Deal Lieutenant
Smak
Link Copied

Refunds are not counted as payment with many CCs. I don’t understand what difference does it make to credit the current statement or upcoming, eventually it is a credit. Unless there are multiple refunds every month on customer’s cc to avoid making payment for outstanding balance. And in any case they will not give you Point benefits either for the refund.
Like 3
Deal Subedar Deal Subedar
dummyuser
Link Copied

they will give you 1 waiver in a year, so use it wisely. with SBI, strictly refunds not counted as payments
Like 2
Deal Lieutenant Deal Lieutenant
Manitian
Link Copied

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 …
Like 5
Deal Cadet Deal Cadet
Rockstar008
Link Copied

Very sad 🙁.. have already emailed them and tweeted too. Lets hope I get the resolution otherwise will follow the escalation matrix.
Deal Cadet Deal Cadet
Rockstar008
Link Copied

Also why so high financial charges. I had already payed 42311 out of 44082 then they should levy interest on 1771 only. Why is the interest so much??
Helpful Helpful
Tekk
Link Copied

No.. Finance charges will be levied on total due if you failed to pay less than total due..
Deal Cadet Deal Cadet
Awesome_Deepak
Link Copied
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.
Like Heart 10
Deal Cadet Deal Cadet
Rockstar008
Link Copied

But in icici, HDFC, Axis refunds are considered as payments. Whats wrongs with SBI??
Like 1
View 9 more replies
replyuser
Click here to reply
Reply
Hottest Discussions
1318° Credit card now charging 1% with 18% gst on utility mcc
popkwai57
14
253° vehicle safety: serious concerns (this time MahindrA)
Desidime User
8
3536° Best method to pay Credit Card bills from debit cards and other credit cards (updated periodically) - 2024 version
Sachin9811
318
210° @tv9 Kindly do not include me in your spams
Bhawin
22
64° Buy Samsung F15 5G and get Samsung 25W Charger at Rs.1
ssganesh
2
View all
Hottest Deals
LOOT : Peanut butter chocolate (PUNE)
398° LOOT : Peanut butter chocolate (PUNE)
96% OFF
Amazon Spin And Win One Plus 12r And More
630° Amazon Spin And Win One Plus 12r And More
Paytm - Get 350 Cashback on Credit Card Bill Payment for Pro, Pro Max Users (Live @12 PM)
352° Paytm - Get 350 Cashback on Credit Card Bill Payment for Pro, Pro Max Users (Live @12 PM)
Amazon Weekly Cricket Mania Spin And Win Up to 20 Rs
523° Amazon Weekly Cricket Mania Spin And Win Up to 20 Rs
Amazon daily quiz time answers | 3rd May
295° Amazon daily quiz time answers | 3rd May
View all
Top News
Sony PS5 at ₹13,000 Discount via Summer Promo Offer
1213° Sony PS5 at ₹13,000 Discount via Summer Promo Offer
Domino’s 4 Course Meal at 99! New offer!
2961° Domino’s 4 Course Meal at 99! New offer!
11 New & Upcoming OTT Releases this Week 2024 (7th April)
586° 11 New & Upcoming OTT Releases this Week 2024 (7th April)
Garena Free Fire MAX Redeem Codes for Today, 2nd May 2024
2101° Garena Free Fire MAX Redeem Codes for Today, 2nd May 2024
Buy Nothing Phone 2A at Rs.19999 on Flipkart. Limited Time Offer!
148° Buy Nothing Phone 2A at Rs.19999 on Flipkart. Limited Time Offer!
View all