Double-cycle Billing

A double-cycle billing is when a credit card issuer bills based on the average daily balance over two full cycles, rather than one. This type of billing can result in credit card holders paying more interest, as it includes more days with a higher balance. For example, if a credit card holder's balance on the first day of the billing cycle is $500 and their balance on the last day of the billing cycle is $1,000, their average daily balance would be $750. With double-cycle billing, this same credit card holder would have an average daily balance of $875 (($500 + $1,000)/2 x 2). With the Credit Card Act from 2009 the double-cycle billing was banned.

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