Finance Charges on Purchases. We will calculate the Finance Charge on your Account for purchase transactions, if you did not pay the total New Balance listed on the last billing statement in full by the payment due date. When you do not pay the New Balance in full, Finance Charges on purchases begin to accrue on the date the purchase is posted to your Account, as follows: To figure the Finance Charge for a billing cycle, we will apply a monthly periodic rate of Finance Charge, to the average daily balance of your purchase transactions, including current transactions, for the billing cycle. The average daily balance is computed as follows: First, we take your balance for purchase transactions at the beginning of each day, excluding unpaid Finance Charges, Insurance Premiums, and Other Fees. Then we add any new purchase transactions for that day and subtract any credits or payments. This gives us the daily balance. Then, we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the average daily balance. If there is a FINANCE CHARGE due which is less than $1.00, you will be charged a minimum FINANCE CHARGE of $1.00.
