Outlook Money
The period between the end of a billing cycle and the payment due date during which interest is not charged on new transactions is the credit card grace period. It usually lasts between 21 days to 25 days.
The benefits include no interest on new transactions in the given grace period and it also gives one the extra time for payment after the billing cycle finishes.
Other benefits include improving the credit score and well-managed financial planning. It also encourages responsible spending as the people know the deadline by which the payments are made without any additional fees.
The grace period is revoked by the companies and the interest is taken on both the outstanding balance and any subsequent transactions if a cardholder carries a balance from one billing cycle to the new one.
Late payments by an employee may result in interest being charged on all additional purchases as of the day of the transaction.