Interest is calculated using the total amount due at the end of each day.
The average daily balance is credited to the customer’s account from the day the payment is received by the credit card company.
Interest charges under the average daily balance method should be lower than under the previous balance method and higher than under the less common adjusted balance method.
American Express cards are issued by American Express, a publicly traded financial services company, and are payment cards, credit cards, or prepaid cards.
The average outstanding balance refers to the unpaid portion of any term, installment, revolving or credit card debt that earns interest over a specified period of time.
The minimum monthly payment is the smallest amount of money a borrower can pay on a revolving credit account each month and still be in good standing with the credit card company.
The annual interest rate on a credit card is the annual interest rate that is applied monthly, i.e. the monthly amount charged on the account is one twelfth of the annual annual interest rate.