Terms and conditions How your credit card works

1.3 Ways you can and can’t transact

There are different types of transactions that can happen as you use your card or account. 

Transactions that are allowed on your account

Transactions that are allowed on your account

International gambling transactions are blocked

International gambling transactions from your account are not permitted. But if (for whatever reason) we’re unable to identify an international gambling transaction – and we allow your transaction to occur – it will be treated as a cash advance. For example, this may happen in limited circumstances if certain merchants are not identified as international gambling merchants, where our systems are down or the merchant terminal is unable to obtain online authorisations. Find out more about You can find out more about how we restrict gambling transactions on your NAB cards.

1.4 How transactions work with your account 

You agree that we’ll charge your account for the amount of each transaction made when you or an additional cardholder uses a card or account, as well as the amount of any interest, fees and charges payable under our agreement. You must pay the amounts we charge to your account at the times, and in the amounts, described in your agreement with us. 

The amount you’re charged for a purchase transaction or cash advance is what’s shown on a receipt (or similar proof of transaction). 

We may assign any date we reasonably consider to be appropriate for any charge to your account or any amount that reduces your outstanding balance (for example, a refund or payment). We may also change the amount or date of any of those charges or reductions – for example, when we need to make a correction.

We’ll always do this in compliance with the relevant law and so that a charge to your account is never made earlier than the date the relevant transaction occurred. 

1.5  How your credit limit operates 

Your credit limit is a cap on how high the outstanding balance on your account can go. How much credit is available to you is whatever your credit limit is – minus the outstanding balance and any transactions which have been made but not yet added to your outstanding balance. You share this limit with all additional cardholders. 

You can tell us what your preferred credit limit is when you apply for your card. We won’t give you a limit that’s more than what you’ve requested – and you’ll see the agreed amount in your offer details. You can reduce your credit limit online, or by calling us on the number shown at the bottom of this page . We’ll only increase your credit limit if you apply to do so. There are more details on how to request increases or decreases to your credit limit in Section 10. 

We may allow you to temporarily exceed your credit limit – if that happens, this excess amount may form part of the total minimum payment shown in your next statement. It may also mean you will pay a greater amount of interest. 

We’ll take reasonable steps to let you know the first time you exceed your credit limit in a statement period, but might not if you repay the excess amount within 2 business days.

1.6  How your cash advance limit operates 

The cash advance limit is the maximum amount of cash advances that may be included in your outstanding balance. This is usually the same as your credit limit, but in some cases may be lower. We’ll notify you if your cash advance limit is lower than your credit limit. 

3.1  Make the most of interest free periods (for purchase transactions)

You’ll be eligible for interest free periods for purchase transactions unless you have a card formerly known as Visa One Fee-Free card or your offer details says otherwise. This means you won’t incur interest on purchase transactions for any day during that interest free period. 

You can minimise interest charges by staying in an interest free period. You’ll start with an interest free period the first time you use your card – and can continue it by paying the closing balance (or the interest free days payment, if you have a balance transfer) shown on your statement in full by the due date shown on your statement. If you don’t, you’ll incur interest on purchase transactions from the next day. For more information on interest free periods, see Section 2.4. 

3.2  Reduce your outstanding balance for cash advances 

Interest free periods do not apply to cash advances. This means you start to incur interest from the day you make the cash advance. As the interest rate for cash advances is typically higher than for purchase transactions, it’s a good idea to try to pay the closing balance by at least the amount of the cash advances shown in your statement as soon as possible. 

3.3  Reduce your outstanding balance for balance transfers 

Interest free periods don’t apply to balance transfers – but special promotional interest rates may apply for a promotional period. We’ll let you know about these before you make the balance transfer. It’s a good idea to pay the outstanding amount of a balance transfer in full before the promotional period ends. Once that period is over, the unpaid amount will be considered a cash advance – and we will charge interest on it at the applicable rate. 

3.4  Reduce your outstanding balance sooner 

You can choose to pay more than your required total minimum payment to reduce your outstanding balance amount. This will reduce the amount of interest that’s incurred daily – and then charged to your account. On your statement you’ll be able to see how long it will take you to pay off your closing balance, as well as how much interest you will pay, if you only repay the total minimum payment. 

1. Check your transaction history 

It’s important to check your statement carefully as soon as you receive it. Get in touch with us if you find anything you disagree with or need to dispute a transaction. Make sure you check Section 8 as well, as there are time restrictions for lodging a transaction dispute. 

You can contact us using any of the ways shown at the bottom of this page. 

2. Pay at least the total minimum payment by the due date 

Not making the total minimum payment by the due date could lead to additional charges. Late or missed payments could also show up on your credit report, along with any default or serious credit infringements. You can see how we calculate your total minimum payment in Section 4.4 below. 

3. Consider paying more than the total minimum payment 

If you’d like to start an interest free period on purchase transactions – or keep an existing period going – you’ll need to pay the closing balance (or the interest free days payment, if you have a balance transfer) by the due date on your statement. 

You will benefit by doing this, as you will incur no interest for purchase transactions for any day in an interest free period. 

There are other things you should think about if you wish to pay more than the total minimum payment. This is discussed further in Section 3.4. 

4.4  How your total minimum payment is calculated 

The following amounts are added together to calculate the total minimum payment you see in your statement at the end of each statement period: 

Monthly payment 

If your closing balance is less than $25, then your monthly payment is your closing balance. 

Otherwise, your monthly payment is the higher of the following: 

• $25; or 
• an amount equal to the relevant percentage of your closing balance (other than an amount of your balance that we’ve notified you as being excluded from this total). This percentage is calculated and rounded separately to the nearest cent for each type of transaction in your closing balance (as referred to in your Balance and Interest Breakdown on your statement).
  

The relevant percentage is specified in your offer details.

We may change the relevant percentage referred to above or the way we calculate the monthly payment and, if we do, we will notify you. 

Past due or overlimit amount 

A past due amount is any amount you had to pay in your previous statement period, but did not. 

An overlimit amount is the amount of your closing balance that’s above your credit limit. 

If you have one of these, it’ll be included in your total minimum payment and will need to be paid straight away to fix up your account. If you have both, the higher of the two amounts will be included in the total minimum payment to be paid.

4.5  International transactions 

This section deals with international transactions. This will be relevant for you if you or a cardholder: 

• use a card overseas; or 
• use your account in Australia but the goods or service provider (commonly referred to as a ‘merchant’), financial institution or entity processing the transaction is located outside Australia.
  

When international transactions may be declined

Sometimes we may decline international transactions or we may impose limits on international transactions, including in order to comply with the laws of Australia or another country or to protect you or us from loss or to manage risk.

Where you have an international transaction, the amount we charge to your account will always be in Australian dollars – no matter which currency you pay in. The exchange rate used to calculate the amount of Australian dollars will depend on the currency you decide to pay in. 

If you receive a refund for an international transaction, the refund amount will be calculated by Visa or the merchant using the exchange rate on the date the refund is processed. This may be different to the exchange rate used when you made the transaction – which means the refund you’re given in Australian dollars could be more or less than the Australian dollar purchase amount. 

We may need to send each other communications from time to time. We call these ‘notices’ – and they include offer details, terms and conditions, statements, notices about your account or changes to our agreement, or other documents and communications. 

You can give us notice – and we can give the same to you – in the ways described ‘In writing’ below. In addition, we can give you notice by the ‘By publication’ method described below.