Understanding credit cards
What is a credit card?
Credit cards are a way to pay for goods and services and can be a convenient way of borrowing money. Many financial institutions, such as Westpac, issue credit cards by partnering with companies such as MasterCard ®, Visa or American Express ®. These companies all provide a global payment network which makes credit cards a convenient option to pay for things at accepting merchants around the world (although there may be some places where some or all of the cards are not accepted).
A credit card can be used to borrow money for purchases and cash advances. Each month you are required to make a minimum payment of 2% of the closing balance (rounded to the nearest dollar) or $10, whichever is the greater, plus the greater of any unpaid past due amounts from previous statements or any amount that exceeds the credit limit. You will be required to pay the full closing balance if the amount is less than $10.
If you do not pay your account in full each month, the outstanding balance will be carried over on your account. If applicable, interest is charged on each statement cycle at the statement date.
How do credit cards work?
Credit limit
When you apply for a credit card, you have the option of nominating your preferred credit limit, or the maximum credit limit available to you based on our assessment of the information you provide in your application. Minimum card limits apply, so you will need to nominate your preferred credit limit with this in mind.
Purchases
A credit card may be used for purchases in person, over the phone or online. For a fast and convenient payment option for everyday purchases of under $100, simply hold your MasterCard or Visa Card against the contactless terminal wherever you see your card’s logo and the contactless symbol - no need to enter a PIN or sign.
Cash advances and balance transfers
A cash advance option provides you with the flexibility to use your credit card to withdraw cash against your credit card account. Interest on the cash advance will be charged from day one.
A balance transfer is an optional feature of a credit card that allows you to request to transfer any non-Westpac card balances to a Westpac credit card.
Monthly repayment
You are required to make a minimum payment each month if your statement shows a closing balance. However, you should aim to pay off more than the minimum monthly repayment otherwise it will take you longer to pay off the balance and you will be charged interest.
Interest
You will be charged interest on the proportion of your balance that doesn't get paid in full as well as other specified advances and purchases. Interest will be charged at the specified annual percentage rates of your chosen credit card. Some credit cards have different variable annual percentage rates for cash advances and for purchases. View the current rates for credit card variable interest .
Things you should know
- Important: Applications for credit are subject to Westpac's normal lending criteria.
- American Express® is a registered trademark of American Express.
- MasterCard® is a registered trademark of MasterCard International Incorporated.
- PayPass™ is a trademark of MasterCard International Incorporated.
