Recently a user posted on social media about him facing an issue with regard to his credit card billing. More specifically, it was regarding an online purchase he had made on his credit card on an equated monthly instalment (EMI) mode.
The reader said that he bought two items on credit card EMI from an online shopping portal in October 2022. The purchase was made two days before the end of his billing cycle. The full amount was deducted from his credit card, but in his November 2022 statement, he saw that the amount charged in the last statement (October 2022) was reversed, and the transaction was turned into an EMI. He said it was quite puzzling as to how these entries were accounted for in his statement.
Here’s How The Credit Card Billing Cycle Works
If you see the terms and conditions of a credit card issuing document, then you will realise that the billing cycle is typically monthly for most credit cards in India. So, whatever transaction one makes within this billing cycle date gets captured by the credit card issuing bank or others, and is then recorded as an input in the credit card statement before it is sent to the cardholder.
This billing date is also known as the statement date or the closing date.
Sajish Pillai, managing director, and head – assets and strategic alliances, DBS Bank India, says that the credit card statement is rather comprehensive and includes all purchases, refunds, payments and other debits or credits made to…
