Section 32.06A - Computation of Finance Charge(1)Definition of "Credit Card Sale". For purposes of 209 CMR 32.06A, a "credit card sale" means a retail sale of goods or services made in reliance on a credit card, but it does not include: (a) A sale paid for with a check, draft or similar written instrument that is accepted in reliance on a check guarantee card.(b) A sale made in reliance on an access device, as defined in M.G.L. c. 167B, if the sale results in an extension of credit under an overdraft credit plan or under a plan to maintain a specified minimum balance in a deposit account.(2)Exclusion of New Credit Card Sales. (a) The balance on which the finance charge is computed under an open end credit plan established pursuant to M.G.L. c. 255D shall not include any new balance resulting from a credit card sale first posted to the account during the billing cycle for which the finance charge is computed.(b) The balance on which the finance charge is computed under any other open end credit plan shall not include any balance resulting from a credit card sale first posted to the account during the cycle for which the finance charge is computed if: 1. There was no balance outstanding under the open end credit plan at the beginning of the cycle;2. Any balance outstanding under the open end credit plan at the beginning of the cycle was solely attributable to a finance charge assessed with respect to the preceding cycle; or3. The sum of all payments received by the creditor during the cycle and all credits to the open end plan applicable to any balance outstanding at the beginning of the cycle is equal to or exceeds the balance outstanding under the plan at the beginning of the cycle.(3)Finance Charge Computation Methods. Subject to 209 CMR32.06A(2), the finance charge under an open end credit plan may be computed on any of the following: (a) The previous balance of the account, after deducting all payments on the account received by the creditor during the cycle and all credits to the account that apply to a sale reflected in the previous balance.(b) The average daily balance determined by adding the daily account balances for each day in the billing cycle and dividing the total by the number of days in the billing cycle.(c) The daily account balances.Amended by Mass Register Issue 1277, eff. 1/2/2015.Amended by Mass Register Issue 1320, eff. 8/26/2016.