Lte me put a simple illustration.
Say charge is 6% per annum which equates to 0.5% per month.
Balance transfer for 6 months.
RM5,000 transfered.
Min charge after 1st month = RM5,000*5% = RM250
One pays min amount thus leaving the balance RM4,750
2nd month = RM4,750+0.5% = RM4773.75 & min pay is RM238.69
3rd month follows.
......
So calculation goes on provided one doesn't swipe the card for anything else.

If one does do that....than a rather complicated calculation kicks in. Say same example with additional RM1,000 swiped.
Min charge after 1st month = RM6,000*5% = RM300
One pays min amount thus leaving the balance RM5,700
Now comes the complication. Say the payment one made 70% goes to BT and 30% goes to new swipe the equation would be:
BT --> 5,000 - 210 = 4,790 (interest = 4,790*0.5% = 23.95)
Normal --> 1,000 - 90 = 910 (interest = 910*1.5% = 13.65)
Total --> 4,790 + 910 + 23.95 + 13.65 = RM5,737.60 (Min pay = 286.88)
.........
3rd month
Say customer paid RM300 again
BT --> 4,790 - 210 = 4,580 (interest = 4,580*0.5% = 22.90)
Normal --> (910 + 23.95 + 13.65) - 90 = 857.760 (interest = 857.60*1.5% = 12.86)
Total --> 4,580 + 857.60 + 22.90 + 12.86 = RM5,473.36 (Min pay = 273.67)

-----------------
Notice the calculation on interest and how it is added back to the retail aka normal line which is being charged 1.5% or 18% per annum.

Disclaimer: This is only a simple illustration similar. Haven't really go into the depth of hierarchy of payment from different banks which usually 1st is to clear installment (EPP), 2nd interest, 3rd cash, 4th BT, 5th only principal balance.
Basically no one really realise that one is being charge the normal 1.5% on top of the BT interest rate as time drags by. Unless if one is able to clear up what he owes within the stipulated time frame than the bank wouldn't be able to earn much.

bare in mind that usually when 0% is offered, there would most probably be a one time processing fee (usually based on balance). If it's with interest, than most of the time processing fees are waived or kept at the minimal.

clawhammer.....trust me as I'm in the banking industry.
The term "offset" doesn't really meant "offsetting" all of your balance.
In every bank, there's this payment hierarchy model which I've illustrated. Mostly according to this:
1st is to clear installment (EPP), 2nd interest, 3rd cash, 4th BT, 5th only principal balance.
Which you've shown HSBC is different.
i.e. A higher percentage would always go to Installment i.e. EPP first. Than another percentage goes to Interest, than cash so forth.

One example whereby during my younger days when I'm still naive...I took out cash advance. I basically phone in to ask RHB before I took asking them would they offset my cash advance first and their reply is YES. Thus the next day, I basically paid up my cash advance which I still left some outstanding balance in there. When the monthly statement comes, I was puzzled with the interest as it's extremely high.
I basically call them up and my answer received is as I explained above. A higher percentage goes to clear my cash advance (not all). Than some left over percentage to clear my other retail outstanding. I basically feck them up saying that the previous officer told me otherwise. Thus I asked them to tell me what is my current balance and immediately I paid off everything.

As for the case with HLB, does one pay to 2 separate accounts or only paying to one. If one pays only to one....high possibility it would work as per my illustration also.

This post has been edited by b00n: May 27 2008, 02:36 PM

If it's free....why not.
Ppl usually decline because of the annual fee. But than again, if it's free.......

True also....the hassle of canceling. Tried cancel my RHB master once (keeping the Visa because my phone bill's standing instruction) and end up getting Air Asia (that time still belongs to RHB). Than luckily Air Asia partnered with Citi thus RHB send me the "Travel Money" which eventually I never went and pick up in the post office.
Sometimes I don't understand why a person would wants to hold so many credit card. 3 to me is by far quite a lot. Currently holding Citi, HSBC and RHB. Am more in favor of HSBC because of their customer service and their promotions. Citi because of their evergreen points and RHB no choice as it's my first and my standing instruction. Basically declined also their upgrade because I don't want the hassle of reassigning my standing instruction to another card number.

I forgot how long is the validity for HSBC points. I think 2 years if not wrong.
They did send a SMS reminding me so-and-so points is going to expiry and so-and-so period besides showing in the statement.
That's what I like. I remember once I wrongly paid to the Visa which there's next to nothing balance, and they call me up to verify and reverse the interest charged on my Master as I'm suppose to pay my Master card.

This post has been edited by b00n: May 27 2008, 11:42 PM

Visa and Master is what is known as association which provided the network.
Same as Dinners, Amex, etc...

http://www.visa.com/globalgateway/gg_selec...ml?retcountry=1
http://www.mastercard.com/index.html
http://www.dinersclub.com/en/index.html
https://home.americanexpress.com/home/mt_pe...us_nu=globalbar

For easier illustration, can use the analogy of phone. Maxis, Digi, TM, Celcom etc....

14 and use 7?!.....
How do you keep track and how are you going to pay?!.........
Say one card owe RM500, 7 cards equates to RM3500.
Do hope you earn big bucks.
10k+ credit line is enough for me. So basically I only actively use 1 card. Like I mentioned before, I have to keep my RHB because of auto billing as it's my first card. Most of the time I only use HSBC.

It's answer A.
When you logically think about it if it's B i.e. "settles in full" than you wouldn't even be charge interest in the first place.

Yes, mastercard still charge lower merchant fee than visa.
Amex is the highest in the market.

The problem with banks or any other profit earning institution they wouldn't do that as it's business.
Try and imagine this scenario:
Someone has to convince the business to drop the annual fee charges.
Say got 1000 cards which the annual fee is RM100.
Thus to present the scenario, one has to tell the business the impact before and after i.e.
pre: 1,000 cards * RM100 annual fees = RM100,000 annual revenue
post: -nil- revenue in that line

So generally, how would business approve of that when you equate to banks with 700,000 card base or even 1 million card base.
Blatantly that one person is telling the bank that they're going to loose that amount of revenue if one is to scrap annual fees.
Thus the easy way out is wait for customers to come to senses to ask for waiver. As there's still some that pays their annual fees without complaining and to the bank...it's a blardy profit straight to the revenue line.

The star was introduced during the time when fraudulent cases are rampant.
Thus it's a safety measure. During those times, when you still have the manual "swipe" machine which returns you the slip while the merchant keeps the slip.
I.e. they put your card face down on the slip and swipe it to make an impression on the slip.
Thus using the "star" it enables the fraud detection unit to identify whether or not the transactions are really fraudulent as the fraudsters wouldn't know how many star one has on his/her card and to mass produce, they would rather have the normal details on cards.

Citi and HLB does have...if I'm right, UOB also....

In Phuket 2007 the exchange rate by Citibank cards are lower than money changer.
But regarding the 1% admin charge....that I'm puzzled because we didn't encounter that.

Platinum is a status for every card inclusive of AMEX. It's the difference of status during the older times. Classic -> Gold -> Platinum.
Nowadays because of competitiveness, gold card is getting easier and easier to get thus to be fairer....most card's business is moving towards one card face. I.e. no color. You'll see that a lot of banks are no longer issuing "normal" classic card but instead lots of boombastic name cards.
The most luxurious card out there is still the "Black Card". Amex Centurion Card. It's by invitation!

Btw, AMEX used to charge the highest in terms of their merchant fees. Thus smaller shop hardly can afford or think it's not worth it.
Thus only the big shops have it thus considered luxurious. Because of the competitiveness in the market they have to lower down their merchant fees, but currently still charge th highest merchant fee followed by Diners than Visa. Master still charge the lowest.

True, but you'll be surprised that everyone has their own opinion which sometimes we find baseless but it's their thinking though.
I had a friend whose father mentioned he hated HSBC card. Upon asking why, he said that a lot of times when he spent big he got a call from HSBC for authorisation.
I was dumb folded as if it was me, I would be jumpy if they didn't even call. Maybe rich men thinking is unlike me.
I remember once when I bought my wifey a laptop and was waiting for SCB to call me. First time buying laptop and first time using big amount on cards so was expecting them to call for authorisation. However, their SMS confirmation only reach me 4-5hrs later.
I wonder what if I called back and bluff them that I never did that transaction. How would it be than?!

It depends on where you swipe and did the merchant aka shop applied for the scheme with it's issuer aka the bank.

It's RHB Travel Money Card.

Not true.
The actual agreement is card issuers would not charge merchant fees when consumer pays at the petrol kiosk.
The argument is by paying the merchant fees of 1.++% they would eventually loose out as petrol price is fixed unlike normal merchandise where one can manipulate the profit margin.
Points are still there and nothing to do with petrol association. All depends on the card issuers.
Where did you get your source of information?

which card are you holding?
Usually if one holds the cash rebate type of cards from any other banks than there wouldn't be any point accumulation.