Credit cards are used widely for various transactions on a routine basis. However as with any service, credit cards are applicable to certain kinds of fees. In this article we will inform our readers about what these charges are and when are they levied on your credit card’s bill.
This is a fee that’s charged once a year regardless of how many transactions you do or whatever you use your credit card for. It’s a fixed service charge that is intimated to the customer when they apply for a card. Different types of cards have different annual fee. However some credit card providers
may waive it off to attract more people.
Late Payment Fee:
A late payment surcharge is applicable on a cardholder who fails to clear atleast their minimum amount due on a credit card by the deadline.
Over Limit Fee:
This is a fee that’s charged by the credit card provider when your outstanding balance crosses your credit limit. This could be due to a transaction on the whole or partially, or because of certain taxes or fees. However this limit is opt in and if you haven’t opted for it then your transaction will not be processed if it’s exceeding your credit limit.
Foreign Transaction Fee:
If you use your card abroad for any purchases or online transactions then you may be subject to a foreign transaction fee. What this means is that the currency of the origin of your credit card is converted into the local currency and a certain percentage is charged as the transaction fee. This fee is applicable per transaction.
Cash Withdrawal Fee:
If you use your credit card to withdraw cash from an ATM, then a handling fee of usually around 3% is charged along with a high interest rate that has no grace period and is applicable right from the day of withdrawal.