Billing Cycle
Definition
- The amount of time between the last statement date and the current statement date.
Synonyms
monthly withdrawal, recurring period, regular billing, timely statement
Related Terms and Acronyms
- Automatic Payment — Definition,
- An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
- Billing Statement — Definition,
- A monthly bill that is sent by a creditor to the customer that provides a summary of the activity on an account. This can include balances, purchases, payments, credits, and finance charges.
- Grace Period — Definition,
- If the credit card user does not carry a balance, the grace period is the interest-free time a lender allows between the transaction date and the billing date. The standard grace period is usually between 20 and 30 days. If there is no grace period, finance charges will accrue the moment a purchase is made with the credit card. People who carry a balance on their credit cards have no grace period.
- A window of time where a policyholder still has time to pay insurance premiums.
- Pre-authorized Payments — Definition,
- A way to set up a monthly payment to be automatically paid from a bank account.
- Previous Balance — Definition,
- Some credit card issuers base finance charges on the amount owed by the account holder at the end of the previous billing cycle.
