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Understanding different fee charges

Fees are charged on your credit card for different circumstances that you may encounter when using your card or if you are late in making a payment to the balance owing on the card. 

Late payment fee

A late payment fee is a charge that can apply if you don’t pay at least the minimum payment, shown on your statement, by the due date.

  • To avoid this fee, you need to make sure your payment is received by the bank by the due date.
  • It’s a good idea to set up a direct debit for your credit card payments. You can choose to direct debit the minimum payment, or the full amount. (You can still make extra payments on top of the direct debit if you want).
  • If you’re posting a cheque, or making an Internet Balance transfer from a non-Bank of New Zealand account, make sure you allow enough time for the bank to receive the payment (and for it to clear) before the due date.

Cash advance fees

Cash advance fees are charged when you use your credit card to withdraw cash from an ATM, over the counter at banks, or electronic transfer funds from your credit card account through telephone or Internet Banking.

  • Cash advance fees are generally charged regardless of whether your account is in credit or debit (except for Platinum cardholders who aren’t charged cash advance fees where their account remains in credit after the advance). They can also be charged when you make a bill payment from your credit card via Internet Banking.
  • Cash advance fees are charged to some bill payments, so it is best to check this before you make a payment.

Over limit fee

An over limit fee may be charged if your account is in excess of your credit card limit. To avoid the embarrassment of having your credit card declined, Bank of New Zealand may use its discretion to allow you to go over your credit card limit from time to time.

  • You can apply for a credit limit increase if you think you’ll be increasing your spending (e.g. going overseas on holiday). Apply via Internet Banking or calling the toll free number on your Bank of New Zealand credit card.
  • If you’ve made a purchase and realise you’ve gone over your limit, you can make a payment that same day through Internet Banking to avoid being charged a fee.
  • You’ll continue to be charged the fee on every statement cycle that you remain over limit.