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You should check the terms of your card. These may be enclosed with your bill each month and this should explain in detail how the minimum payment is calculated. Alternatively, you can call the 1-800 number on the back of the card and have the customer service people explain it to you in detail. It is very important to be aware of the terms and conditions of the credit cards you hold; these are legal agreements just like a loan or a contract.

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Q: Why does the mimimum payment on my Master Card account go up each month even though the balance goes down?
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What is CDA in banking meaning and use?

CDA is a banking acronym for Controlled Disbursement Account. A CDA bank account is a subsidiary account to a Master account that is manually funded for a specific purpose (i.e. Accounts Payable, Payroll, etc.). Usually the CDA account balance is checked each morning for withdrawn funds, and if approved the exact funds are transfered from the Master account to satisfy the withdrawal. The alternative bank account structure is a ZBA account, which stands for Zero Balance Account. A ZBA account is a subsidiary account that is directly tied to the Master account so that any deposits/withdrawals are automatically transferred (swept) to the Master account, thereby maintaining a Zero Balance in the subsidiary account. The primary difference is that CDA provides a higher level of security since it requires a positive confirmation to transfer funds between the Master and Subsidiary accounts.


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