Minimum Amount Due for Credit Cards

In line with the best customer practices, Standard Chartered Bank has introduced a company-wide change in the Minimum Amount Due applicable on all Standard Chartered Credit Cards. This has been done in order to help our cardholders better manage the repayment of their outstanding balances and further improve our global services.

Please note that under the new calculation method the Minimum Amount Due (MAD) effective from the 1st of July 2014, will be calculated as follows:

  • If your current balance is less than JOD 10, you will have to pay the balance in full.
  • In case the current balance amount is more than JOD 10, the Minimum Amount Due will be equivalent to JOD 10 or 1% of your principal balance amount, whichever is higher.
  • In addition to the above stated amount, the following fees and charges (all or those applicable) will also be a part of the minimum payment amount:
    • Financial Charges
    • Late payment fee+ Over limit fee
    • Any amount payable over and above the credit limit of the Credit Card
    • Amount of the unpaid/outstanding minimum payment amount due in the previous month(s) date
    • Fixed monthly installment (if you are subscribed to an installment plan)

Your Important Questions Answered

Why has Standard Chartered Bank introduced a new Minimum Amount Due calculation method?

The new Minimum Amount Due calculation method has been implemented to facilitate our customers in better managing their outstanding balance on their Credit Cards, even if they choose to pay the Minimum Amount Due on a monthly basis. With the new method, customers will start to pay off their outstanding at a faster rate. And at the same time, all the performing customers will experience lower Minimum Amount Due.

The new method has been structured to ensure that our products and services are in line with the best global practices in the cards industry.

What is the new Minimum Amount Due calculation method?

The new Minimum Amount Due will now be equivalent to 1% of the principal balance plus all fees and charges (Financial Charges, Late Payment charge etc) OR JOD 10*, whichever is higher.

When will this change occur?

1st July 2014.

How will this affect you?

The new Minimum Amount Due calculation method will only make a difference to customers who pay the minimum amount due every month.

For customers who make full payments on their outstanding balances every month, this revision will not change any customer experience.

Below are a few examples on how the change might affect you:

Example 1 - if you always make a full payment

  • You have spent JOD 6,000 which is also the total outstanding amount as per the statement (Retail Balance of JOD 6,000)
  • You always pays the full amount on or before the due date
  • You always remain within your Credit Card limit
  • No finance charges, no late payment or over limit charges

For this example the minimum amount due is JOD 60

Why? You pay the total outstanding balance every month and do not get charged any fees or finance charges. Minimum amount due will be 1% of the outstanding balance (retail balance).

Example 2 – if 1% of the customer's principal balance is less than JOD 10

  • You have spent JOD 400 which is also the total outstanding amount as per the statement (Retail Balance of JOD 400)
  • You always pays the full amount on or before the due date
  • No over limit or late payment fee

For this example the minimum amount due is JOD 10

Why? Because 1% of the retail balance of JOD 400 = JOD 4, but since the minimum amount due is 1% of the outstanding balance or JOD 10 whichever is higher therefore the minimum amount due is JOD 10.

Example 3 – if you are charged late payment charges

  • You usually pay the minimum amount due each month on time
  • You stay within your Credit Card limit
  • Last month, your payment was delayed
  • Total outstanding balance of JOD 5,107.5 (Retail balance of JOD 5000 + JOD 107.5 of charges)
  • The JOD 107.5 charges resulted from finance charges of JOD 87.50 of + late payment charge of JOD 20
  • Arrears from last month of JOD 300 (minimum amount due of last month which was not paid)

For this example the minimum amount due is JOD 457.5

Why? Because 1% of the retail balance of JOD 5,000 = JOD 50 + financial charges of JOD 87.5 (100% of Financial Charges) + a late payment fee of JOD 20 (100% of charges) + arrears of JOD 300 = JOD 457.5.

Example 4 - if you are charged with an over limit charge

  • You don't always pay the total outstanding amount every month
  • Last month, you exceeded the Credit Card limit by JOD 525
  • Your total retail balance is JOD 10,525
  • You have a credit limit of JOD 10,000
  • Finance charges of JOD 184
  • Over limit charge of JOD 20

For this example the minimum amount due is JOD 834

Why? Because 1% of retail balance of JOD 10,525 = JOD 105 + JOD 184 (1.75% on the retail balance of JOD 10,525) + JOD 20 (100% of Over limit fee) + over limit amount in full of JOD 525 = JOD 834.

Will this change increase the minimum payment?

For the vast majority of customers, this new calculation method will reduce the Minimum Amount due and is in line with our Here for Good brand promise.

How does this change my normal routine?

The new Minimum Amount Due calculation method will only make a difference to customers who pay the minimum amount due.

For customers who make full payments on their outstanding balances, this revision will not change any customer experience.

The Minimum Amount Due will now be calculated as follows:

  • If your current balance is less than JOD 10, you will have to pay the balance in full.
  • In case you current balance amount is more than JOD 10, the Minimum Amount Due will be equivalent to 1% of your principal balance amount or JOD 10, whichever is higher.
  • In addition to the above stated amount, the following fees and charges (all or those applicable) will also be a part of the minimum payment amount:
    • Financial Charges
    • Late payment charges
    • Any amount payable over and above the credit limit of the Credit Card
    • Amount of the unpaid / outstanding minimum payment amount due in the previous month(s) date
    • Fixed monthly instalment (if you are subscribed to an instalment plan)
What if I require more information about the Minimum Amount Due calculation method?

If you require any information about the new Minimum Amount Due calculation, please feel free to call our 24 Hour Phone Banking Service at +96265658011 or 080022099.

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