A minimum finance charge generally means a minimum charge, made obligatory by a credit card company, on the balance (sum owed) on a credit card. Normal charges for a minimum finance amount differ according to the credit card, however generally cost between 0 .25 to 0.50 (USD). More often than not the minimum finance charge simply applies when the interest charge is a smaller amount compared to the minimum charge.
Credit card companies survive on interest rates and other charges that are a result of penalties and fees. Almost all credit card companies have made it even easier for them to earn interest by giving the option of making minimum payments. Even if a person makes minimum payments interest will be charged on the account; however, it won’t be considered as a missed payment.