Interest, fees, and charges explained

How interest, fees and charges work on your business credit card

Managing your business credit card effectively requires a clear understanding of how interest, fees and other charges are calculated and applied. The following information breaks down when these costs are incurred and how they affect your account, helping you stay in control of your business finances.

Interest

Interest applies to two types of transactions – purchases and cash advances – and is calculated at a different rate depending on the type of transaction. For example, the interest rate for a cash advance is typically higher than the interest rate for purchases. Interest is calculated as a daily rate on any purchase (outside your interest free period) as a cash advance, and is charged to your facility at the end of your statement period.

Transactions that attract interest

Purchases

Most transactions for acquiring goods and services are considered purchases, including buying tools, paying for fuel, or paying for subscription services. Purchases that are not repaid within your interest free period will incur interest. 

Cash advances 

Withdrawing cash or transferring money from your credit card account are both considered cash advances (along with certain transactions that we consider to be the equivalent of withdrawing cash from your account, for example, gambling transactions). Cash advances are not eligible for an interest free period. Interest will be calculated from when the cash advance is made.

When is interest charged?

Interest on purchases that are not eligible for an interest free period (for example, made when your interest fee period is not in effect), will be charged at the end of your statement period, calculated from the date they were made until the closing date of your statement. Any outstanding amounts will continue to incur interest calculated from the opening date until the closing date of your statement. 

Interest on cash advances will be charged at the end of your statement period, calculated from the date the cash advance was made, until the closing date of your statement.

Interest fee period – All NAB Business Credit Cards offer interest free periods on purchases, provided all conditions are met. 

Interest free periods of up to 44 or 55 days interest free are made up of: 

• The statement period; and 
• The payment period 

Only purchases can be eligible for interest free periods and won’t incur any interest during the statement cycle, provided the interest free period is in effect. 

In order to maintain an active interest free period, you must pay the closing balance of your monthly statement in full, by the due date.

Fees and charges

Fees and charges associated with operating your facility can also include: 

• Annual or monthly fees (charged per card, per annum); 
• International transaction fees. 
• Cash advance fees. 

Access a full list of fees and associated interest rates.

Learn more about managing your business credit card (PDF, 683KB).