The basic rule is the balance due that you don't pay off is what you will pay interest on. To limit the chance of this happening, GEM Visa offers five ways to make balance payments:

1. Direct Debt – permitting either minimum payment, a specific regular payment or the total GEM Visa balance owed
2. Internet Banking – GEM Visa is listed as a payee under all New Zealand banks.
3. Phone Banking – any bank will set up GEM Visa as a payment party.
4. Automatic Payments - for fixed payment weekly, fortnightly or monthly from your bank account.
5. Cheque (although this can delay funds from clearing for at least 5 working days, so you would pay interest on any interest-incurring balance)

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This is the standard offering from GEM Visa, and it works for overseas purchases too. It's a generous deal which is financially savvy if you can pay off your balance in full when it's due. No credit card in New Zealand offers such generous terms for irregularly-sized purchases; as a comparison the Q Card's interest free period is 3 months, although there is no minimum purchase value. 

But, and it's a big "but" - if you can't pay off the balance, you'll be paying 25,99% p.a. until you clear it. To put it in dollar terms, if you have a $4,000 balance owing, you'll pay $85 a month in interest until it's paid. New purchases on the card will be entitled to the interest-free period and we talk about interest in detail in point 4 below. 
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GEM Visa makes it clear in their terms and conditions - "If you are in default under your credit contract we may demand immediate payment in full of all amounts you owe under your credit contract including any amounts accrued, authorised or charged but not yet debited to your account". This means even purchased in an interest-free and non-repayment period would need to be paid back at once. While GEM Visa avoids enforcing this in practice, it's good to keep in mind and make sure at least the minimum payment due is paid on time every month. 
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It's important to understand the interest rate charged by GEM Visa - it is twice as high as a low interest credit card and may keep you in debt unless it is managed wisely. 

Interest Rate – applied to all purchases: GEM Visa charges a standard interest rate of 25.99% p.a. 

Interest is charged daily
GEM Visa charges interest on any purchases that have graduated from their interest-free period, at the standard 25.99% interest rate. GEM Visa accrues interest daily, with the total for the month appearing on your statement.
 
If you have trouble paying bills, read on:
MoneyHub has a real concern that GEM Visa’s low 3% minimum payment amount, coupled with its high interest rate, could keep cardholders in debt far longer than what they might expect. Specifically:

• The 25.99% annual interest rate compounds on an account daily, with repayments processed monthly.
• An account holder with a $4,000 balance, making consistently monthly minimum payments of $120 (3%) will pay $1,000 of interest over one year and still be left with around $3,400 to pay.
• This cost is calculated before standard account fees, charges and extra interest if a payment is missed.​

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GEM Visa charges a Default Fee of $15 for a late payment, and allows up to four consecutive defaults before your account is elevated to a collections agency.
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There are a number of account and administration fees, outlined below:

• Account fee - $52 per year. GEM Visa charges customers $52 every year to administer the card, just as most credit cards have an annual fee. 
• Establishment fee - $55 one-off: This is a one-off fee that is billed to your GEM Visa when you apply to pay for a purchase using GEM Visa for the first time. If your application is successful you’ll be billed the one-off $55 fee. If you have an existing GEM Visa and your account is active, you won't pay this fee. 

The True Cost of Interest Free
​It's important to keep in mind the true cost of "interest free" ​is not $0. You'll need to pay upfront setup fees and annual account fees. For example:

1. If you buy a TV with 24 months interest free for $1,000 you'll pay a $55 setup fee and two years of GEM Visa fees ($52/year), so your purchase will actually cost $1,159 (~12% more than the store price). 

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We've included the fees and free services that apply for non-standard requests and services:

• Cancellation fee: If you cancel your GEM Visa, there is no fee but all balances must be paid off for the account to be closed.
• Early repayment fee: if you pay off your unpaid balance early, there is no fee - this is standard for all credit cards. 
• Refund of balance: If you ask for any money overpaid on your GEM Visa to be returned to you, there is no fee.
• Payment Handling at NZ Post: There is a $1.70 fee for each over the counter payments at NZ Post Branches
• Statement reprints – $5 per statement reprint; you can find statements online and print these yourself.
• Card Replacement: $5 – if you lose your GEM Visa and need a new one to be sent to you.

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GEM Visa operates an "order of priority" when you make payment. To outline where a payment goes, we’ve list the order below:

1. Firstly: Any payment due in the current or a previous payment period for any installment plan advances, and including all the related fees, charges, interest and principal relating to those advances);
2. Secondly:  The money will be applied to charges such late payment fees
3. Thirdly: Money will then be applied to cover all other fees, charges, interest and Gem Visa Shoppers Protection premium due in the current or a previous statement period.
4. Forth: Any other amount due from a previous statement period
5. Fifth: Any other amount due in the current statement period
6. Sixth: Any amounts not yet due for payment

• If you decide to specifically pay one purchase and not others, the other purchases could go into arrears and incur more fees and charges. 
• GEM Visa requires you to ensure your minimum payment (3% of the closing balance due).

 
Example:

1. The minimum repayment is $100
2. You make a  payment of $120: $100 of the payment will cover the payments marked 1. to 3. above, and then be applied to meet balances due from previous statements (4.) or the current statement (5.)

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GEM Visa offers an insurance policy to cover damaged goods, unemployment, accident and illness. The fee is 1% of the monthly closing balance - to ensure a complete picture, we have outlined the policy in detail under GEM Visa Insurance below.  
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As the GEM Visa is a credit card, you can withdraw money on it (known as a "cash advance), although fees do apply:

Cash advance fee:

• New Zealand ATM withdrawal: $1.00
• International ATM Withdrawal: $1.50
• International transaction fee: 2% of the cash advance

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If you find yourself struggling to meet or keep up with payments, you’re legally entitled to apply for a "financial hardship" consideration. This lets you inform GEM Visa about your financial issues and how repaying your balance is causing financial difficulty. Our debt help guide has more information and sets out template letters for such applications. 
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Just like any credit card, you'll be charged $52 every year for the administration of the facility. The fee is payable even if you don’t have a balance owing. Fees do not have interest-free period, and are also subject to a 25.99% interest rate as well as arrears fees for non-payment, so make sure to pay 100% of the amount when it appears on your closing balance. 

This is a rule for all credit cards, not just the GEM Visa. However you can apply for a balance transfer (see 14. below). ​

The good news is that if you’re stuck in a cycle of 25.99% interest rates on balances that never seem to clear, our guide to balance transfer credit cards outlines the best offers currently available. You’ll need to apply with a bank you’re not currently with, and if you get approved, your GEM Visa​ balance will reduce by the amount you’ve been approved to transfer.
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If interest charges and/or fees are made to your account while the balance is at or near to the credit limit, your credit limit can be exceeded. GEM Visa does not charge a fee for breaching the credit limit, but it also means purchases will be declined until payments are made to bring the balance below the credit limit. ​