Credit Cards

Two-cycle billing

Two-cycle billing is the balance computation method that allows credit card issuers to apply interest charges to two full cycles of card balances, rather than the most recent billing cycle’s balances. Also called double-cycle billing or dual-cycle billing, the practice effectively eliminates the grace period for people who paid off a balance in the previous month. The Credit CARD Act of 2009 banned two-cycle billing effective Feb. 22, 2010.