Iconic Christchurch department store Ballantynes is raising the interest rate it charges on its store card to 15% from 12%.
The change appears to be immediate according to its general website content, but its FAQs state the change is effective May 1, 2012.
Although it promotes its card as a 'charge card' - that is, one where you charge store purchase transactions and pay them off the next month, like an old-fashioned store account - in fact the card application Disclosure Statement reveals it is being run just like a regular credit card.
It provides for minimum payments, and applies interest - although at rates lower than most credit cards.
Minimum payments on the Ballantynes card are required to be at least 20% "of your closing balance". This is significantly higher than normal credit cards (and a good thing).
If the Closing Balance is not paid in full by the Payment Date, then Interest is payable on the Unpaid Balance and is calculated by multiplying the Unpaid Balance by the Interest Rate and dividing by twelve (12).
There are no card fees on this store card, except for a $10 charge for replacement cards.
A number of other department stores operate charge cards, including Smith & Caughey in Auckland, and Arthur Barnett in Dunedin (who offer the JCB Card). In addition, all accept regular bank credit cards, and some also accept special-purpose asset-purchase cards.
You can see all store card rates on our Credit Card pages here »
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