Barclaycard has unveiled some new terms, which could lead to a rise in minimum payments by their customers.
Ways to calculate minimum payments
The firm will use the highest of three calculations to calculate monthly minimum payments.
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These calculations include 2-5% of a customer’s main balance, in addition to any instalment plan payment, and £5 or a customer’s total outstanding balance if it is below £5.
Another calculation for minimum payment would be 1-3% of main balance in addition to any interest, default fees or account maintenance plus any instalment plan payment.
The changes, effective from 26 January 2021, will not affect bulk of the customers as they already pay over the minimum amount.
The measures will not affect customers who have taken a payment holiday amid the Covid-19 crisis.
Other changes
The credit card provider has also made fee revisions, which includes elimination of the £12 fee that was charged on surpassing the credit limit.
Moreover, customers have to now make late payment for a maximum of four times annually instead of the usual practice of £12 fee on a monthly basis.
Another change is that customers will not have to pay interest on UK cash withdrawals if they pay off the balance in full.
Further, customers will now be barred from using their cards in gambling transactions.
Notably, this August, Barclaycard was in the news for launching an intelligence platform that uses data analytics to provide procurement departments with an accurate picture of their supply chain.
The service, Barclaycard Payment Intelligence (BPI), integrates account payable data points with third-party data.
