{"id":774693,"date":"2019-05-20T21:14:16","date_gmt":"2019-05-21T01:14:16","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=774693"},"modified":"2026-05-01T16:55:30","modified_gmt":"2026-05-01T20:55:30","slug":"understanding-credit-card-statement-features","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/credit-cards\/understanding-credit-card-statement-features","title":{"rendered":"How to read a credit card statement"},"content":{"rendered":"

A big benefit of using a credit card is that you can use the statement to keep track of your spending. However, to use your credit card statement effectively, you first need to know how to read the statement \u2014 and what to do if you spot a problem. Thankfully, most credit card providers use a similar layout for their paper credit card statements; however, online layouts can be slightly different. Still, you can usually figure out what information the creditor is providing by becoming familiar with the various facets of your credit card statement. Read this guide on how to read your credit card statement to get a better idea of what each section means and how to use it to help track spending, spot fraudulent activity and establish better spending habits.<\/p>

Key features on your credit card statement<\/h3>

To help illustrate the major features of your credit card statement, we\u2019ve included a mock statement from a traditional bank credit card provider. Each section is numbered, to help you find it on the illustrated statement. While your credit card statement may look slightly different, the key is to learn how to spot each section and to know how to use each piece of information to become a better-informed consumer.<\/p>

1. The statement period<\/h4>

Your statement period is the short time frame where purchases made on the credit card are classified as an interest-free loan. The statement period is usually listed in the top left-hand corner of the statement. To avoid paying interest, be sure to understand the interest-free days offered by your credit card lender. For instance, a common mistake is to assume that the interest-free period starts on the date of a purchase. That\u2019s not correct. Instead, lenders provide a block of days and any purchase within that block will be interest-free until the statement period expires. Say, for example, the credit card offers a 21-day interest-free statement period, starting on your card\u2019s anniversary date of February 12. That means, no interest is charged on any purchase made between February 12 and March 3, as long as you pay the full credit card balance by your next due date. However, if you do not pay your balance in full, any purchase made during this time will start to accumulate interest charges, starting March 4.<\/p>

2. Payment due date<\/h4>

The payment due date is typically listed on the right-hand side of your statement. The payment due date is when you must make a payment toward the balance owed on the credit card. On this date you can pay the minimum repayment amount \u2014 also shown on your statement \u2014 or more. If you miss making a payment on the due date, you will pay interest on the outstanding balance and be charged a late payment fee. Plus, missing a payment due date will harm your credit score and negatively impact your chance of getting approved for future loans and credit cards.<\/p>

If you\u2019re having trouble paying your credit card bill by the due date, you could submit a request for the payment due date to be moved. For example, you might prefer that it falls shortly after your payday so you can make sure you have enough money on hand. Also, if you\u2019re just struggling to make a payment for one month, you can request an extension or call to explain your situation to the lender\u2019s customer service team.<\/p>

\"Screenshot<\/p>

Screenshot from RBC, annotated by Finder.<\/small><\/p>

3. Minimum repayment amount due<\/h4>

When using a credit card, you\u2019ll be required to pay a minimum amount each month. The minimum repayment is usually 3% of your outstanding balance or $10, whichever is greater. If you pay less than the minimum repayment amount, you could also be charged a penalty or have your interest rate or annual percentage rate (APR) increased. While you\u2019re obligated to meet the minimum repayment amount each month, it\u2019s better if you can repay the full balance or pay more than the minimum, each statement period. Paying only the minimum means it will take much longer for you to pay off debt and the longer it takes you to pay off your balance in full, the more interest you pay.<\/p>

4. Previous statement balance<\/b><\/h4>

If you haven\u2019t paid your credit card bill or have paid less than the minimum repayment, the amount that you\u2019re yet to repay will be detailed in the previous statement balance section of your statement. The longer you have an overdue payment, the more you\u2019ll be charged in late payment fees. Remember, overdue credit card bills collect fees and accumulate more interest and this only increases your overall debt. Plus, overdue payments and higher debt ratios \u2014 comparison of your income to debt \u2014 the greater the chance your credit score will be negatively impacted.<\/p>

5. Purchases and debits<\/b><\/h4>

The purchases and debits section is a summary of the total amount of money charged to the card during the statement period. It\u2019s wise to look at this balance to make sure the total amount matches up with the transactions that you\u2019ve made. This can help ensure that there aren\u2019t any errors on your statement, such as fraudulent transactions or double charges.<\/p>

6. Payments & credits<\/b><\/h4>

This is the total of all the payments made towards the card, along with any credits, during the given statement period. Some credits can take a few weeks to process, so if you can\u2019t locate the refund on your statement, you might need to contact your bank or the company issuing the refund to make sure that it has gone through properly.<\/p>

7. New balance<\/h4>

This amount refers to how much you owe towards your credit card account in total. If you pay more than you owe, this figure goes into the negative. So while you\u2019re only obligated to pay the minimum repayment each month, you should aim to pay all of, or as close to, the balance as possible. If you do pay your balance in full each statement period, not only will you avoid paying interest on the balance, you could also qualify for up to a certain number of interest-free days on future purchases.<\/p>

8. Transactions<\/b><\/h4>

This list will detail all of the transactions you\u2019ve made on your card during the statement period. It should include the date of the transaction, the posting date of the transaction, the description of the transaction, the reference code and the dollar amount. Again, it\u2019s wise to look over your transaction history to make sure that you haven\u2019t been charged incorrectly or fraudulently in the previous statement period. Most credit cards also come with mobile apps which allow you to check your transaction history, so you won\u2019t have to wait for your statement to arrive to check these details.<\/p>

\"Screenshot<\/p>

Screenshot from RBC, annotated by Finder.<\/small><\/p>

9. Interest rate<\/h4>

While banks present the card\u2019s interest rate as an annual percentage rate (APR), interest is actually charged daily. You can view the interest rate on your account to see how much your balance is collecting in interest, including your purchases, balance transfers and cash advance transactions. Purchases won\u2019t begin to accrue interest until the interest-free grace period ends, however, cash advance transactions usually accrue interest immediately.<\/p>

10. Rewards points or cash back<\/h4>

This is not standard on all credit card statements since not all credit cards offer rewards points or cash back. You can expect these details only if you use a rewards credit card<\/a>, a travel rewards credit card or a cashback credit card<\/a>. If you do, your statement will likely inform you of points or cash back earned during the statement period, the total number of points in your account and points or cash back redeemed during this period. You can also monitor how much points or cash back you\u2019ve earned through your online rewards program account.<\/p>

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Is it legal to charge customers credit card fees in Canada?<\/h3>

Yes, it is legal for credit card issues to charge customers credit card fees, commonly referred to as credit card surcharge fees. As of October 6, 2022, merchants can now charge customers to cover the credit card fees that card issuers, like Visa and Mastercard, charge merchants to process card purchases.<\/p>

What are credit card surcharge fees?<\/strong>
Credit card surcharge fees are an extra cost that credit card companies, like Visa and Mastercard, charge merchants every time they process a credit card payment. In general, these fees are between 1% to 3% of the purchase price. In the past, merchants absorbed this fee, as an extra business expense. (It\u2019s also why some merchants refused to accept credit cards as a method of payment.) However, a recent class action lawsuit against Visa, Mastercard and several banks, provided a ruling that allowed merchants to charge customers, directly this credit card surcharge fee.<\/p>

How do credit card surcharge fees work in Canada?<\/strong>
Canadian merchants must follow regulatory restrictions when charging credit card fees to customers. At this point, merchants must:<\/p>