Macquarie Card Services

(1)

Macquarie Card Services

Understanding Interest

Macquarie Card Services is a division of Macquarie Bank Limited ABN 46 008 583 542 Australian Credit Licence 237502 which provides and administers credit.

(2)

This guide provides an overview of the interest

charges associated with your Macquarie

Credit Card. For more details, please refer

to your letter of Offer and Conditions of Use

booklet, or contact us on 1300 150 300.

(3)

Understanding Interest | 3

1. How is the interest rate on my Macquarie Credit

Card calculated?

Interest is charged on borrowing money, calculated based on the balance you have

outstanding on each day of the statement cycle. The interest rate, also known as the ‘Annual Percentage Rate’ (APR) is included on the front page of every statement you receive. Interest is calculated based on the daily rate of interest. This rate is also included on each monthly statement and is effective for interest calculations in that statement period.

Daily percentage rate = APR/365 days

Interest rates are variable and subject to change and Card Services credit criteria. When interest rates change, you will be notiﬁed by an advertisement in a national newspaper or in writing. If we notify you of a change by advertisement, your next statement will also include a notiﬁcation of the new interest rate.

The type of transactions you make and the way in which you make payments to your account will determine if interest is charged to your account.

2. How are payments allocated to my account?

Payments are also allocated to your account in a particular order. They are allocated to an account in the following order:

• cash advances • purchases*

• special promotions e.g. balance transfer offers*

Cash advances – this includes withdrawals of cash from ATMs or over the counter at a bank and cash advance related fees. Interest is charged from the date of the transaction. Interest free days do not apply to cash advances.

(5)

Purchases – interest is charged on transactions including retail spend, BPAY®_{transactions,} direct debit payments. These transactions may be eligible for up to 55 days interest free, provided that the balance of your account is paid in full by the due date (including any special promotions).

Special promotions – this includes any introductory offer or promotional rate e.g. 0% pa interest on balance transfers for 6 months. Transactions included in this offer will be classiﬁed as a ‘special promotion’ for this time period only. Following the expiry of this offer, any outstanding funds will be charged interest at the current purchases interest rate. This will appear on your statement as ‘special interest’.

3. When must payment be made to my account?

The “minimum monthly payment” is calculated as a percentage of your closing balance for the statement period or $50 (whichever is greater). You must pay the full amount of the closing balance if it is less than $50.

You may always pay more than this amount and payments can be made at any time. If your balance exceeds your credit limit or you have an overdue payment outstanding, immediate payment must be made to your account.

Payment must be received by the due date indicated on your statement. Please allow time for these funds to clear before they are credited and available on your account.

You will not receive a statement if there is no activity, including interest charges or fees, in that statement period.

4. Are credits and payments the same?

Credits and payments are not the same and are not applied to your account in the same way. You should not assume that a credit to your account has reduced your minimum payment and you will still be required to make a payment by the payment due date.

(6)

5. How can I avoid being charged interest?

These interest free days are only available on purchases and not other types of transactions, such as cash advances and balance transfers. You are eligible for these interest free days when the closing balance of your previous statement (including any balance transfers) is continuously paid in full on or before the due date indicated on your statement. This due date is typically 25 days after the end of your statement period when your statement is issued to you.

In the following example, no interest is charged on the January statement since full payment was received by the due date of 27th January. As full payment is always made by the due date, interest is not charged on purchases in the subsequent statement period.

Account is approved on 3rd December 2012 and begins ﬁrst statement period with $0.00 balance.

December Statement

Statement Period 3 December 2012 – 2 January 2013 Summary of Charges

Opening Balance

Payments & Credits Purchases

Cash Advances

Interest & Other Charges

Closing Balance

$0.00

$0.00 $89.00

$0.00 $0.00

$89.00 Payment Summary

Closing Balance Minimum Payment Due Minimum Payment Due Date Overlimit Amount NOW DUE Overdue Amount NOW DUE

$89.00 $50.00 27/01/13 $0.00 $0.00

Transaction Summary

(7)

Example 1: Full payment is received by the due date (continued)

January Statement

Statement Period 3 January 2013 – 2 February 2013 Summary of Charges

Opening Balance

Cash Advances

Closing Balance

$89.00

-$89.00 $80.00 $0.00 $0.00

$80.00 $50.00 27/02/12 $0.00 $0.00

Transaction Summary Date

03/01/2013 26/01/2013 27/01/2013 28/01/2013 29/01/2013

Detail

OPENING BALANCE PAYMENT

PETROL

ENTERTAINMENT RESTAURANT

Amount

-$89.00 $35.00 $25.00 $20.00

Balance

$89.00 $0.00 $35.00 $60.00 $80.00

(8)

Example 1: Full payment is received by the due date (continued)

February Statement

Statement Period 3 February 2013 – 2 March 2013 Summary of Charges

Opening Balance

Cash Advances

Closing Balance

$80.00

-$80.00 $75.00 $0.00 $0.00

$75.00 $50.00 27/03/13 $0.00 $0.00

03/02/2013 27/02/2013 28/02/2013 01/03/2013

Detail

INSURANCE PETROL

Amount

-$80.00 $50.00 $25.00

Balance

$80.00 $0.00 $50.00 $75.00

(9)

6. How is interest charged when full payment is not

received by the due date?

When full payment is not received by the due date, the daily interest rate will be charged on the outstanding balance for each day of the statement period.

You can calculate how much interest has been charged to your account by performing the following three steps:

• Calculate the aggregated balance for any opening balance, new transaction or payment by multiplying the amount by the number of days remaining in the statement period. • Calculate the total aggregated balance by summing all aggregated balances for the

statement period.

• Calculate the interest payment by multiplying the total aggregated balance by the daily interest rate.

Interest will be charged to your account on the last day of the statement period.

When full payment is made after the due date, an account is no longer entitled to interest free days on purchases. Interest will then be calculated from the beginning of the previous statement period (for purchases made during the previous statement period), and charged at the end of the current statement period. A late payment fee will also be incurred.

Following is an example showing how interest is calculated when full payment is not received by the payment due date as indicated on your statement.

(10)

Example 2: Full payment is not received by the due date

December Statement

Opening Balance

Cash Advances

Closing Balance

$0.00

$0.00 $150.00 $0.00 $0.00

$150.00 $50.00 27/01/2013 $0.00 $0.00

3/12/2012 6/12/2012 24/12/2012

Detail

OPENING BALANCE GROCERIES GIFTS

Amount

$115.00 $35.00

Balance

$0.00 $115.00 $150.00

End of statement

The above transactions are interest-free for this statement if the full closing balance for this statement is received by the payment due date.

(11)

Example 2: Full payment is not received by the due date (continued)

January Statement

Opening Balance

Cash Advances

Closing Balance $150.00 -$50.00 $80.00 $0.00 $4.83 $184.83 Payment Summary Closing Balance Minimum Payment Due Minimum Payment Due Date Overlimit Amount NOW DUE Overdue Amount NOW DUE

$184.83 $50.00 27/02/2013 $0.00 $0.00 Transaction Summary Date 3/1/2013 27/1/2013 28/1/2013 28/1/2013 29/1/2013 2/2/2013 Detail OPENING BALANCE PETROL PAYMENT TRAVEL BILLS

INTEREST - PURCHASES

Amount $35.00 -$50.00 $25.00 $20.00 $4.83 Balance $150.00 $185.00 $135.00 $160.00 $180.00 $184.83

(12)

Aggregated Balances for December

Date Detail Amount Balance No. of

Days* Aggregated Balance** ChargedInterest

6/12/2012 GROCERIES $115.00 $115.00 18 $2,070.00 $1.19 24/12/2012 GIFTS $35.00 $150.00 10 $1,500.00 $0.86

SUB TOTAL $3,570.00 $2.05

Interest charged = Aggregated Balance (3570) X Daily Rate (0.057397%) = $2.05

Full closing balance for the previous statement is not received by the due date. Interest is charged on the outstanding balance for each day of the period.

Aggregated Balances for January

Date Detail Amount Balance No. of Days*

Aggregated Balance**

Interest Charged

3/01/2013 OPENING

BALANCE $150.00 $150.00 24 $3,600.00 $2.07 27/01/2013 PETROL $35.00 $185.00 1 $185.00 $0.11 28/01/2013 PAYMENT -$50.00 $135.00 0 $0.00 $0.00 28/01/2013 TRAVEL $25.00 $160.00 1 $160.00 $0.09 29/01/2013 BILLS $20.00 $180.00 5 $900.00 $0.52

SUB TOTAL $4,845.00 $2.78

Interest charged = Aggregated Balance (4845) X Daily Rate (0.057397%) = $2.78

TOTAL INTEREST $4.83

Full closing balance is not received for the previous statement. The transactions within this statement are no longer entitled to the up to 55 days interest fee offer.

* No. of Days is the number of days from the day of the transaction to the end of the statement period. ** Aggregated Balance is a daily aggregate calculated by multiplying the amount by the No. of Days.

This figure is totalled to determine the aggregated balance for the statement period. In this example, the interest rate is 20.95%pa.

(13)

February Statement

Opening Balance

Cash Advances

Closing Balance

$184.83

-$184.83 $75.00 $0.00 $2.55

$77.55 $50.00 27/03/2013 $0.00 $0.00

3/2/2013 27/2/2013 28/2/2013 1/3/2013 2/3/2013

Detail

INSURANCE PETROL

Amount

-$184.83 $50.00 $25.00 $2.55

Balance

$184.83 $0.00 $50.00 $75.00 $77.55

(14)

Aggregated Balances for February

Days Aggregated Balance ChargedInterest

3/02/2013 OPENING BALANCE

$184.83 $184.83 24 $4,435.92 $2.55

27/02/2013 PAYMENT -$184.83 $0.00 0 $0.00 $0.00 28/02/2013 INSURANCE $50.00 $50.00 0* $0.00 $0.00 1/03/2013 PETROL $25.00 $75.00 0* $0.00 $0.00

SUB TOTAL $4,435.92 $2.55 TOTAL INTEREST $2.55

Interest charged = Aggregated Balance (4435.92) X Daily Rate (0.057397%) = $2.55.

* Interest not accrued on current cycle transactions as previous closing balance paid by due date. Full closing balance for the previous statement is received by the payment due date. Interest is charged only on the outstanding balance up to the day before the payment is received.

(15)

March Statement

Statement Period 3 March 2013 – 2 April 2013 Summary of Charges

Opening Balance

Cash Advances

Closing Balance $77.55 -$77.55 $226.00 $0.00 $0.00 $226.00 Payment Summary Closing Balance Minimum Payment Due Minimum Payment Due Date Overlimit Amount NOW DUE Overdue Amount NOW DUE

$226.00 $50.00 27/04/2013 $0.00 $0.00 Transaction Summary Date 3/3/2013 23/3/2013 26/3/2013 1/4/2013 1/4/2013 Detail OPENING BALANCE GROCERIES PAYMENT RESTAURANT PETROLS Amount $80.00 -$77.55 $90.00 $56.00 Balance $77.55 $157.55 $80.00 $170.00 $226.00

End of statement

Full closing balance for the previous statement is received by the payment due date. Interest is not charged to the account.

(16)

7. How does my account return to interest

free status?

Once interest has been charged on any purchases, you are no longer eligible for interest free days until payment has been received for the full closing balance of your last statement. When the statement balance has been cleared, you will receive up to 55 days interest free on any new purchases made.

If you have unpaid balances from previous statement periods, and are making payment for the closing balance on your statement, you will not be eligible for interest-free days until you have paid your closing balance in full for two consecutive statement periods.

A ﬁnal interest charge will still appear on your last statement. Interest will be calculated on any outstanding balance from the beginning of the statement period until the date the full payment was received.

In the previous example, full payment is made in the February statement period. There is no outstanding balance as at 27th February, so the account returns to interest free status. There is a ﬁnal interest charge in February which is calculated on the outstanding balance until this payment was received. No interest is charged in the following statement period.

8. What is a minimum repayment warning (MRW)?

For each statement period, the MRW provides a cardholder with an estimate of the length of time to repay the closing balance shown on the statement, as well as the estimated interest that may be charged if only the minimum payment is paid each month. In addition, the MRW provides an estimate of the payment amount that a cardholder should make for the account to be paid off within a two-year period. The difference between the two estimated interest amounts provides the cardholder with a potential savings ﬁgure.

9. What is an introductory offer?

When you opened your credit card account, you may have received an introductory offer on a balance transfer (also known as a special promotion).

(17)

10. When is interest charged during the

introductory period?

During an introductory offer of 0% pa interest on balance transfers, interest will be charged on the annual fee and any purchases unless the statement balance is paid in full as indicated on your statement following the balance transfer request.

Example 3: Full payment is received prior to the end of the introductory period – 0% pa for 4 months BT

December Statement

Balance from previous statement

Payments & Credits Balance Transfers Annual Fee

Closing Balance $0.00 $0.00 $1,000.00 $200.00 $0.00 $1,200.00 Payment Summary Closing Balance Minimum Payment Due Minimum Payment Due Date Overlimit Amount NOW DUE Overdue Amount NOW DUE

$1,200.00 $50.00 27/01/2012 $0.00 $0.00 Transaction Summary Date 3/12/2011 4/12/2011 20/12/2011 Detail OPENING BALANCE ANNUAL FEE BALANCE TRANSFER Amount $200.00 $1,000.00 Balance $0.00 $200.00 $1,200.00

End of statement

Account approved 3rd December 2012 and requested Balance Transfer (0% pa for 4 months) on 20th December 2012.

(18)

Example 3: Full payment is received prior to the end of the introductory period – 0% pa for 4 months BT (continued)

January Statement

Balance from previous statement

Payments and Credits Purchases

Cash Advances

Closing Balance

$1,200.00

-$50.00 $0.00 $0.00 $6.77

$1,156.77 Payment Summary

$1,156.77 $50.00 27/02/2013 $0.00 $0.00

3/1/2013 26/1/2013 2/2/2013

Detail

Amount

-$50.00 $6.77

Balance

$1,200.00 $1,150.00 $1,156.77

End of statement

(19)

Aggregated Balances for December

4/12/2012 ANNUAL FEE $200.00 $200.00 30 $6,000.00 $3.44

SUB TOTAL $6,000.00 $3.44

Interest charged = Aggregated Balance (6000) X Daily Rate (0.057397%) = $3.44 Aggregated Balances for December (BT plan)

20/12/2012 BALANCE

TRANSFER $1,000.00 $1,000.00 0*** $0.00 $0.00

SUB TOTAL $0.00 $0.00

Aggregated Balances for January

$200.00 $200.00 23 $4,600.00 $2.64

26/01/2013 PAYMENT**** -$50.00 $150.00 8 $1,200.00 $0.69

SUB TOTAL $5,800.00 $3.33

Interest charged = Aggregated Balance (5800) X Daily Rate (0.057397%) = $3.33 Aggregated Balances for January (BT Plan)

3/01/2013 OPENING

BALANCE $1,000.00 $1,000.00 0*** $0.00 $0.00

SUB TOTAL $0.00 $0.00 TOTAL INTEREST $6.77

* No. of Days is the number of days from the day of the transaction to the end of the statement period. ** Aggregated Balance is a daily aggregate calculated by multiplying the amount by the No. of Days.

This figure is totalled to determine the aggregated balance for the statement period. In this example, the interest rate is 20.95%pa.

*** Balance Transfer in introductory interest free period.

**** The payment of $50.00 is applied to the Annual Fee. Interest is charged on the Annual Fee for the month of December and the remainder of the Annual Fee for January.

(20)

February Statement

Opening Balance

Cash Advances

Closing Balance

$1,156.77

-$50.00 $0.00 $0.00 $2.40

$1,109.17 Payment Summary

$1,109.17 $50.00 27/03/2013 $0.00 $0.00

3/2/2013 27/2/2013 2/3/2013

Detail

Amount

-$50.00 $2.40

Balance

$1,156.77 $1,106.77 $1,109.17

End of statement

(21)

Aggregated Balances for February

$156.77 $156.77 24 $3,762.48 $2.15

27/02/2013 PAYMENT** -$50.00 $106.77 4 $427.08 $0.25

SUB TOTAL $4,189.56 $2.40

Interest charged = Aggregated Balance (4189.56) X Daily Rate (0.057397%) = $2.40 Aggregated Balances for February (BT plan)

Date Detail Amount Balance No. of Days

Aggregated Balance

Interest Charged

3/02/2013 OPENING

BALANCE $1,000.00 $1,000.00 0* $0.00 $0.00

TOTAL INTEREST $2.40

*Balance Transfer in introductory interest free period.

** The payment on $50.00 is applied to the Annual Fee. Interest is charged on Annual Fee and any associated interest from previous months.

(22)

March Statement

Opening Balance

Cash Advances

Closing Balance $1,109.17 -$1,109.17 $162.06 $0.00 $1.50 $163.56 Dr Dr Payment Summary Closing Balance Minimum Payment Due Minimum Payment Due Date Overlimit Amount NOW DUE Overdue Amount NOW DUE

$163.56 $50.00 24/04/2013 $0.00 $0.00 Transaction Summary Date 3/3/2013 10/3/2013 15/3/2013 27/3/2013 27/3/2013 2/4/2013 Detail OPENING BALANCE GROCERIES TRAVEL PAYMENT PAYMENT

Amount $53.83 $108.23 -$50.00 -$1,059.17 $1.50 Balance $1,109.17 $1,163.00 $1,271.23 $1,221.23 $162.06 $163.56

End of statement

Minimum payment is made on 27/03/2013 and full closing balance is received before the introductory offer end date. Offer end date is 02/04/2013 (4 months from account approval date on 3rd December 2012).

(23)

Aggregated Balances for March

$109.17 $109.17 24 $2,620.08 $1.50

10/03/2013 GROCERIES $53.83 $163.00 0* $0.00 $0.00 15/03/2013 TRAVEL $108.23 $271.23 0* $0.00 $0.00 27/03/2013 PAYMENT*** -$50.00 $221.23 0* $0.00 $0.00 27/03/2013 PAYMENT

(-$1,059.17)**** -$221.23 $0.00 0 $0.00 $0.00

SUB TOTAL $2,620.08 $1.50

Interest charged = Aggregated Balance (2620.08) X Daily Rate (0.057397%) = $1.50 Aggregated Balances for March (BT plan)

3/03/2013 OPENING

BALANCE $1,000.00 $1,000.00 0** $0.00 $0.00 27/03/2013 PAYMENT

(-$1,059.17)**** -$837.94 $162.06 0** $0.00 $0.00

SUB TOTAL $0.00 $0.00 TOTAL INTEREST $1.50

* Interest not accrued on current cycle transactions as previous statement closing balance paid in full. ** Balance Transfer in introductory interest free period.

*** The payment on $50.00 is applied to Purchases. Interest is charged on the Purchases / Annual Fee and any associated interest from previous months.

**** The payment on $1,059.17 is applied to Purchases first and then the remainder to the Balance Transfer. Interest is charged on the Purchases / Annual Fee and any associated interest from previous months.

(24)

April Statement

Statement Period 3 April 2013 – 2 May 2013 Summary of Charges

Opening Balance

Cash Advances

Closing Balance

$163.56

-$163.56 $138.90 $0.00 $0.00

$138.90 $50.00 27/05/2013 $0.00 $0.00

3/4/2013 13/4/2013 20/4/2013 1/5/2013

Detail

OPENING BALANCE RESTAURANT PAYMENT PETROL

Amount

$100.00 -$163.56 $38.90

Balance

$163.56 $263.56 $100.00 $138.90

End of statement

(25)

11. How is interest charged when the introductory

offer expires?

The introductory interest rate applies from the date your account was opened, as indicated on the letter of Offer you received with your Card. During your introductory period, interest will be calculated at the promotional rate. Minimum payment, as indicated on your monthly statement, is still required during this period.

In the previous example the account is approved on 3rd December 2012 with an introductory offer of four months. This offer will then expire on 2nd April 2013. You can ﬁnd out your outstanding balance at any time by logging into Macquarie Online, our internet banking website, or by using Telephone Banking.

Example 4: Full payment is not received prior to the end of the introductory period – 0% pa for 4 months BT

December Statement

Opening Balance

Payments & Credits Balance Transfers Cash Advances

Closing Balance $0.00 $0.00 $1,000.00 $0.00 $0.00 $1,000.00 Payment Summary Closing Balance Minimum Payment Due Minimum Payment Due Date Overlimit Amount NOW DUE Overdue Amount NOW DUE

$1,000.00 $50.00 27/01/13 $0.00 $0.00 Transaction Summary Date 03/12/2012 06/12/2012 Detail OPENING BALANCE BALANCE TRANSFER Amount $1,000.00 Balance $0.00 $1,000.00

End of statement

Account approved 3rd December 2012 and requested Balance Transfer (0% pa for 4 months) on 6th December 2012.

(26)

Example 4: Full payment is not received prior to the end of the introductory period – 0% pa for 4 months BT (continued)

January Statement

Opening Balance

Payments & Credits Balance Transfers Cash Advances

Closing Balance

$1,000.00

-$50.00 $0.00 $0.00 $0.00

$950.00 $50.00 27/02/13 $0.00 $0.00

03/01/2013 27/01/2013

Detail

Amount

-$50.00

Balance

$1,000.00 $950.00

End of statement

(27)

February Statement

Opening Balance

Cash Advances

Closing Balance

$950.00

-$50.00 $0.00 $0.00 $0.00

$900.00 $50.00 27/03/13 $0.00 $0.00

03/02/2013 27/02/2013

Detail

Amount

-$50.00

Balance

$950.00 $900.00

End of statement

Minimum payment is received and the account is still within an introductory offer.

(28)

March Statement

Opening Balance

Cash Advances

Closing Balance

$900.00

-$50.00 $0.00 $0.00 $0.00

$850.00 $50.00 27/04/13 $0.00 $0.00

03/03/2013 27/03/2013

Detail

Amount

-$50.00

Balance

$900.00 $850.00

End of statement

(29)

April Statement

Statement Period 3 April 2013 – 2 May 2013 Summary of Charges

Opening Balance

Cash Advances

Closing Balance

$850.00

-$850.00 $0.00 $0.00 $4.39

$4.39 $4.39 27/05/13 $0.00 $0.00

03/04/2013 12/04/2013 02/05/2013

Detail

INTEREST

Amount

-$850.00 $4.39

Balance

$850.00 $0.00 $4.39

(30)

Aggregated Balances for April

3/04/2013 OPENING BALANCE $850.00 $850.00 9 $7,650.00 $4.39 12/04/2013 PAYMENT -$850.00 $0.00 21 $0.00 $0.00

TOTAL $7,650.00 $4.39

Interest charged = Aggregated Balance (7650) X Daily Rate (0.057397%) = $4.39

Outstanding Balance Transfer amount is not paid in full by the Balance Transfer expiry date (4 months from the account approval date). Interest is charged to the account. In this example, the interest rate is 20.95%pa. For details on how to return the account to an interest free state, please refer to example #2 of this brochure.

12. Suggested tips for avoiding additional fees

1. Pay your minimum payment by the due date as indicated on your statement. 2. Set up a direct debit to avoid making a late payment.

• To set up a direct debit facility on your account, complete a Direct Debit Request Form available on Macquarie Online or by contacting us. You can select to either have the minimum payment, full statement balance, or a ﬁxed amount debited from your nominated account.

3. Monitor your transactions and available credit using Macquarie Online or Telephone Banking.

• Access Macquarie Online, our internet banking website at macquarie.com.au/personal using your Macquarie Access Code (MAC ID) and internet banking password.

• Access Telephone Banking on 1300 150 300 using your Macquarie Access Code (MAC ID) and your Telephone Banking PIN (TPIN).

Please contact us if you require your MAC ID, internet banking password or TPIN to access self service banking facilities.

(31)

(32)

Macquarie Card Services