subject: Credit Card Faqs [print this page] What is the difference between a debit card and a credit card?
When you spend with a debit card, the amount is deducted directly from the money deposited in your savings or cheque account. A credit card effectively allows you to borrow money from your bank for each transaction. When you spend with your credit card, the bank is extending credit for the amount spent. In return, you agree to repay that money over a certain period.
How is interest charged?
Many credit card accounts offer an interest-free period. This means that if your account is paid in full on or before the due date, you will not be charged interest.
If you have not settled your account within the interest-free period, you will be charged interest on the outstanding balance from the time your transactions were made until the account is settled. If you do not settle your account, you will continue to be charged interest on the remaining balance and on any new transactions. When the outstanding balance is repaid, the interest-free period is reset, and you can again use your card without paying interest, provided you repay this amount within the interest-free period.
How much interest will I be charged?
This will depend on the account. Be sure to check the interest charged as well as any other fees when choosing a credit card.
When is my credit card payment due?
The credit card payment due date is set by your bank. This is a set number of days within which you are required to settle your credit card balance. When acquiring the credit card, you can sometimes also choose the date by which you would like to make credit card payments.
Your monthly statement should reflect the repayment date as well as the minimum amount to be paid.
Some banks offer an extended repayment period of 3 to 36 months for large purchases, and theses will also reflect on your monthly statement.
Who can apply for a credit card in South Africa?
The National Credit Act was introduced to promote fair access to credit and to encourage responsible lending. If you have a valid South African ID document, you can apply for a credit card. The bank will check whether you meet the requirements of the Act, as well as your credit rating before issuing a credit card. It should be noted that applying for a credit card does not guarantee that a card will be issued to you.
Can I change my credit limit?
Your bank can increase or decrease your credit limit upon your request, provided you meet the required criteria.
What happens if I forget my Personal Identity Number or use the wrong PIN?
If the wrong PIN is entered 3 times in a row, the transaction will be cancelled and the card will be temporarily blocked. This is a security precaution to prevent criminals from illegally using your credit card. You will need to contact your bank to reactivate your card. If you have forgotten your PIN, simply go to the nearest branch with your ID and other relevant documentation to select a new number.
Do I need a PIN to use my credit card at a store?
Banks are replacing the current magnetic strip credit cards with cards that use sophisticated Chip and PIN technology. These cards use a PIN and are therefore more secure. However, as many retailers do not yet have the infrastructure for this technology, a signature is often still sufficient when using your credit card.
If the retailer has a Chip and PIN enabled Point of Sale (POS) machine, the card will automatically be required to be inserted in the machine in stead of swiping the magnetic strip.
Can I use my credit card overseas?
Credit cards are accepted around the world. Most banks offer MasterCard or Visa credit cards, which are accepted at many retailers globally.
As a security measure, most banks have systems to check irregular behaviour on credit cards such as frequent swipes in an overseas location - and could block your card if they pick up irregular transactions. It is therefore a good idea to let your bank know before you travel overseas.
