About statements

A statement is a document containing detailed information of a cardholder’s purchases throughout a month, whether in installments or not. Thus, you can keep track of your spending and understand how it is calculated.

The issuer decides on the form to make the bill available to cardholders, whether in digital format or printed and sent to the address provided for receiving mail.

The statement brings a lot of important information, such as:

FIG: Sample of information contained in a statementFIG: Sample of information contained in a statement

FIG: Sample of information contained in a statement

A - Next payment due: In case the bill is paid before the due date, the issuer may charge you for penalties and other fees according to the contract, plus the interest on the bill’s total amount.

B - Total amount: It’s the full amount of the bill, which must be paid until the due date.

C - Credit limit: Amount provided by the issuer so that the cardholder customer is able to purchase goods and services in that month or throughout months (in installments). There’s also a service for emergency withdrawal, where the issuer may offer cash withdrawal for the customer in ATMs using a credit card. This transaction works as a loan and is subject to fees and/or charges for financing by the card’s issuer, plus Tax on Financial Operations.

D - Options for installments: There’s an option to pay the bill in installments when the customer is not able to pay its total amount, which generally encompasses the amount between the minimum payment and the total payment, plus interests. When choosing the minimum payment for the bill and using the rotating credit, the customer can pay the outstanding balance of the current bill in installments. The issuer can decide on a down payment, the number of installments and rules that make more sense.

E - Best next day to purchase: Equivalent to the credit interruption or closing date, when the issuer compiles the cardholder customer’s spending for the month and marks what will be charged for the next payment due. The bill goes from “open” to “closed”, and all the purchases made as of that day will be charged in the next payment. The interruption or closing date varies according to the institution issuing the card. However, it is usually a few days before the due date.

F -Minimum payment: In order to avoid overdue bills, the customer can make a minimum payment for the bill until its due date. Thus, in the following month, they’ll receive the bill containing an outstanding amount from the previous month, plus interests and other fees, where they can pay the total amount or request to pay it in installments.

G - Summary of your national spending: It shows summary information for the transaction that took place in the cardholder customer’s country of origin, including:

  • Previous balance: Total amount of the bill in the previous month.
  • Credits: Sum of the paid amount of the bill in the previous month and other credit that may be have been accounted for, such as a spending refund.
  • • Debit/Spending: Total amount of financial entries registered by the issuer during the period. It is the sum of purchases, services and other fees, when applicable.
  • • Balance (or total amount) to pay: Total amount you must pay until the bill’s due date.

H - Detailed history of spending: all debit and credit entries of your bill that are registered by the issuer are described here, such as annual fee, purchases, overdue charges, received payments, refunds and others. Besides, the issuer informs the entry date (debit or credit), the name for the establishment where you made a purchase, entry amount and whether the purchase/spending is paid in installments or not.

I - Summary of international spending: Purchases made in foreign countries are shown here. The spending in foreign currencies must be paid in local currency. Therefore, the international credit card’s issuer will convert these transactions in foreign currency (dollar, euro, peso, etc.) into the relevant currency.

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Note

International spending is not limited only to a geographic location of the cardholder. Online international transactions are also considered international spending and in foreign currency, therefore, they’ll have the same handling.

J - Currency rate in international transactions: Issuers use a rate for converting spending in a foreign currency into a local one, shown in the bill. In case there is a variation in the daily rate used for converting spending in foreign currency between the issuing date of the bill (or in the purchase date, as necessary) and the due date for the payment/bill, the credit or debit (depending on the variation) will the accounted for the following payment.

L - Financing charges: These are charges made by the issuer if you choose to partially pay the balance of your bill and finance the remaining amount by rotating credit, if you make purchases in installments and have them financed by the issuer, if you have emergency loans/withdrawals using the credit card or if you pay the balance of your bill in installments.
Some issuers allow paying the bill in installments as a payment option for the credit card bill. In this case, the total amount of the bill is paid in installments, plus financing charges.

  • Tax on Financial Operations: Tax on credit, exchange or insurance operations that is charged on credit operations and international transactions (in foreign currency).

  • CET: Acronym for Total Effective Cost. The goal of CET is to inform you on the total cost for a credit operation, showing all the charges, fees, rates, taxes and other expenses incurring credit operations. The issuer must always inform the CET before signing a contract. The amount of these costs may vary according to the issuer.

  • Penalty: If the customer doesn’t pay the credit card bill before its due date, the issuer may charge a penalty for overdue payment, 2% over the balance due.

  • Interest on late payment or financing charges on late payment: Percentage charged by the issuer on overdue balance that hasn’t been paid until the due date.


Rotating credit and minimum payment

Rotating credit is an emergency loan where the cardholder is not able to pay the total amount of a credit card bill. So, every time they pay any amount from the minimum payment shown in the bill and leave the remaining amount for the following month, they’ll use the rotating credit.

According to Resolution 4.549 by Central Bank of Brazil, which is in place since April 3rd, 2017, if the remaining debt is not settled in up to 30 days after using the rotating credit, the cardholder can pay the debt in installments, along with lower interests than in the rotating credit.

What’s the minimum payment?

The minimum payment of the bill depends on rules set by each issuer, that is, they’re responsible for setting the percentual and informing the customer of it.

In case the cardholder has used the rotating credit in the previous month, the outstanding balance will also be part of the minimum payment of the current bill, as well as eventual installments for bills that the cardholder may have contracted previously. In this case, the minimum payment is composed of:

  • Minimum percentage of the cardholder’s purchases that month, as set by the credit card’s issuer;
  • Rotating amount for the previous month, plus extra interests;
  • Amount for the monthly installments contracted.

In the following bill, the cardholder customer may choose to:

  • Pay the total amount: In order to avoid interests and charges, the cardholder always has this option available;
  • Pay in installments: The cardholder pays the first installment or a down payment according to the issuer’s rules;
  • Pay a new minimum payment: Minimal percentage for new purchases, plus the credit rotating amount for the previous month and interests.

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