Unlike a credit card, a Q Card offers two methods of repayment:

1. Q Card "fixed instalment plan": This is exactly as you would expect - any purchase you make is repaid over fixed instalments during an agreed term, and will be either interest-free or interest-bearing. The instalment and repayment terms are set by the retailer you purchase from, and payments occur on a monthly basis.
2. Q Card "flexi payment plan": This is different to the fixed instalment plans - the purchase you make does not need to be repaid in fixed instalments.  Instead, there is an ongoing requirements for minimum monthly repayment once the payment holiday and interest-free period is over. With a Flexi payment plan, a customer can pay as much or as little as they choose, with 3% or $10 whichever is greater) being the minimum requirement. This means that you’ll be paying interest on the 97% of the balance that isn’t repaid.

This is the standard offering from Q Card. 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 offers such generous terms, and the GEM Finance credit card only kicks in on purchases over $250.

If you can't pay off the balance, you'll be paying an interest rate of 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 in the first month and it will then decrease every month as you pay down the balance. New purchases on the card will be entitled to the interest-free period. We talk about interest in detail in point 4 below. 
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Q Card takes a security interest over the credit advanced to you whilst there is any money outstanding. This security interest attaches to all property that you purchase using your Q Card. This is different to how a credit card works, and it’s important to understand why this matters. Q Card has taken a security interest over the goods you purchase, registering a security (at a fee, paid by you) on the Personal Property Securities Register (PPSR). This security interest gives Q Card the right to repossess and sell the secured property if you breach your obligations, i.e. fail to make repayments.

From 2018, Q Card is no longer registering goods purchased under the PPSR and any existing registrations will not be renewed.

PPSR differs from a credit card purchase, including the Q Mastercard, where the debt is unsecured. This means if you bought a TV with a credit card and then later didn’t pay your credit card bill, you’ll still keep your TV. 

It's important to understand the interest rates charged by Q Card - they're almost twice as high as a low interest credit card and keep you in debt unless used wisely. 

Interest Rates

1. Base Rate – applied to all purchases: Q Card charges a standard interest rate of 25.99% p.a. During specific promotions, retailers and/or Q Card itself may offer a lower interest rate for a particular purchase or an extended payment holiday period. However, this is rather rare and it’s more likely the number of "interest free months" will be extended rather than the interest rate being discounted. Interest charges are added to your Q Card account balance monthly but calculated daily.

Interest is charged daily
Q Card charges interest on any purchases that have not been repaid before the end of their interest-free period. The standard 25.99% interest rate applies, but some purchase plans may have a lower interest rate than the standard rate. Q Card 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 Q Card’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 and late payment fees if a payment is missed.​

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Q Card has a number of fees when it comes to defaults. We've made them clear below so cardholders know what they could pay if things go wrong:

Default Fees

• Default Stages – Q Card allows for four defaults before your account is elevated to a collections agency.
• In every one of the four notification stages, there is a $15 fee charged each time the cardholder fails pay the minimum repayment. Your account will be marked as “overdue” until balances are up to date. There are four stages of arrears and an overdue letter is sent at each stage of the arrears process.

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There are a number of account and administration fees, outlined below:

• Account fee - $50 per year. Q Card charges customers $25 every six months to administer the card, similar to the fee you may pay to have a credit card.
• Advance Fee - $35 per transaction: This is a fee charged when customers make a new Long Term Finance transaction with a Fixed Instalment Plan or Flexi Payment Plan and are detailed on the sales voucher/receipt. The Advance Fees are calculated according to the costs incurred in processing and documenting the advance, so if it's a low value purchase you could pay less than $35
• Variation of terms fee - $16.50 per change per repayment plan. This fee is charged if you wish to change the terms of your credit arrangement. For example, you wish to move from fixed repayment schedule to flexible repayment for a TV purchased, the $16.50 fee will apply.

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 $35 setup fee and two years of Q Card annual fees ($50/year), so your purchase will actually cost $1,135 (~11% 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 a repayment plan, there is no fee.
• Early repayment fee: if you pay off your unpaid balance under a fixed instalment plan, there is no fee.
• Refund of balance: If you ask for any money overpaid on your Q Card to be returned to you, there is no fee.
• Statement reprints – $7.50 for up to 5 Statements, then $1 per Statement thereafter. This fee covers posting requested statements to your address
• Card Replacement: $10 – if you lose your Q Card and need a new one to be sent to you.

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

1. First: The money will be pay off any overdue amount (i.e. any arrears/missed payments) as these balances are charged the highest interest. 
2. Secondly: The money will pay off any balance due on the “Fees and Miscellaneous Plan” – this is where all the fees go, including account fees and insurance fees. So if you have any of these, they’ll be paid next. 
3. Thirdly: The money is applied to any balance due on repayment plans in order of the highest interest bearing first.

• ​Q Card states that when making a monthly payment the “system” ensures that the minimum payment for each interest-incurring purchase is met. This is to make repayments the most cost-effective. 
• It does this by splitting your payment across all plans that require an amount to be paid for that month.
• If you decide to specifically pay one purchase and not others, you will need to make sure you know the status of your other purchases so you do not pay interest unnecessarily.
• Q Card requires you to ensure your minimum payment (3% of the closing balance due) for all plans has been covered before payment is made for a specific purchase. Furthermore, only amounts that exceed the monthly minimum due can be directed to a specific plan.

 
Example:

1. The minimum repayment is $100
2. Your payment is $120 ($100 of the payment will be split to meet the minimum due on all plans)
3. You can direct that extra $20 to whichever plan you like. 

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Q Card offers a range of insurance options. Our view is that none of these are necessary for standard Q Card use. Further to this, Q Card does not offer any pricing details on its website for all but one insurance policy, which we have detailed below.
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This may seem obvious, but we thought it’s useful to note - a Q Card is not an EFTPOS card and it's not a credit card either, meaning you won't be able to check the balance without calling or checking online.
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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 Q Card 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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As Q Card is a revolving credit facility, you'll be charged $25 every six months for the administration of the facility. This annual account fee is payable even if you don’t have a balance owing. Fees 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 specifically prohibited as Q Card states that paying credit with more credit encourages bad habits. 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 Q Card balance will reduce by the amount you’ve been approved to transfer.
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If you want to clear a balance all at once, you can do this without being charged a fee. Q Card requires you to obtain a “Pay Off Quote” over the phone. You can then provide an expected payment date and get an estimate of the final balance. Once paid, your Q Card will have a zero balance. 

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. Q Card 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.