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Residual Interest
The interest that accumulates on a loan or credit card balance when it is not paid off in full from one billing period to the next.
More Details
Residual interest is the interest on an unpaid portion of a loan or credit balance that remains after making a partial payment. It is based on the amount that is still outstanding after the partial payment is applied. Usually it is a higher interest rate than the standard interest rate on a credit card.
Example
If you do not pay off the full balance by the due date, the credit card issuer will charge you residual interest on the unpaid balance. The amount of residual interest you are charged will depend on the number of days between the billing statement date and the date you pay the bill, as well as the interest rate on the card.
Related Terms
Billing Error
A mistake on a billing statement or invoice. This could include incorrect charges, duplicate charges, or charges for services not provided.
Apple Pay
A mobile payment and digital wallet service that allows users to make payments using their Apple device.
Prepayment
The issuing of payment for a bill or debt before the official due date.