Processing Customer Payments

[Mark Johnson]

Neil Williams wrote:

>Compare it with your bank statement or credit card statement. You pay off a 
>portion of the balance and what is left is subject to interest. You don't pay 
>interest on the oldest transactions only, you pay interest on the *balance*.
>
>  
>
May I suggest you re-read your credit card agreement.  I don't know 
about other countries, but here in Canada, this statement is not true.  
If you do not pay off your balance in full, you will be charged interest 
on everything.  If you do pay off your balance in full before the grace 
period expires, no interest is charged.  Thus, if you charge $1000.00, 
and make a payment for $999.00, you are charged interest on all the 
charges from the date they are made until the payment.  Thus, you will 
most likely be charged more than $1 in interest.

It would be interesting to see if other countries have more consumer 
friendly credit card agreements.

Regards,
Mark Johnson