Things that you must know about Credit Card Charges

Do you know about the different credit card charges? What are the essential things that all credit card buyers should remember before buying one? What are the ways to save money on your credit card bill? The Credit Health Care team is here to provide you with all the solutions.


Now, let us discuss about the things that every credit card user must be aware of. Credit card are considered to be efficient for most users but can also become a huge burden if the correct procedures associated with it are not followed. Many people in the country are suffering from credit card debt and this need to be reduced into a considerable amount. All the step-by-step processes are formulated, and they are proven to be very useful for credit card money-saving tips. The guidelines of credit card charges are the costs which are needed for extra services, avoiding late payment costs, having knowledge about foreign transaction prices, understanding service taxes, knowing about interest charges, the lost credit cards do get replaced, learning about credit card surcharges, giving over-limit fees, providing cash withdrawal payments and also paying for free credit cards.

Things that you must know about Credit Card Charges

Can you tell about the most vital mistakes that one should avoid while dealing with credit cards? Why do credit card holders end up paying much more as part of credit card charges? What are the most important hidden credit card charges that you must know about? You should be reading our post in detail in order to know more.

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Costs for Extra Services

It is a true fact that most individuals try to buy credit cards for the purpose of enjoying the various extra services and perks which can availed by the person. Most think that the costs are included in the credit card payments, but you are required to pay extra for such privileges.

In addition to that, the several extra charges which may cost you some more money are cases of having cheque bounces, need of issuing duplicate statement. All the credit card related activities should be focused on the matter that you do not pay any kind of unnecessary charges.

Avoid late Payment Costs

As advised by all credit card experts, that you must allocate a budget for using credit cards and never fail to make payments. Do, note that, the late amount varies according to different credit card issuing company and are further categorized into maximum late fee which can be charged.

Moreover, you must also remember that the late fee amount is regulated by the federal government. the payments are considered harsh on those credit card holders who have continuously avoided making their payments as the charges tend to increase with every month.

Foreign Transaction Prices

When, you are dealing with foreign market, you are entitled to pay more as par charges on foreign transactions. You need to know about the ways that you should apply in order to decrease the cost to a minimum level.

In addition to that, the amount of fees that you need to pay for each transaction depends on the foreign currency exchange rate. The fees on this case are usually charged by currency transaction processors in the country such as Visa and MasterCard. In earlier times, it was also known as the currency conversion fee. You may also like to read our post regarding best no transaction credit cards in 2018. 

Understand Service Taxes

As the name suggests, the service taxes are usually charged by credit card companies for the different kinds of services that, they provide to their customers. The tax procedure on credit cards are quite complex and you need to apply tax-saving tricks to pay less.

Moreover, the amount that is earned as part of service tax are not given to the Internal Revenue Service (IRS). You will also be surprised to know that the sum is also tax deductible in some cases. The taxes are generally generated on the transactions made through credit cards.

Know about Interest Charges

The next point is about having better understanding of many interest charges which are asked by credit card issuers in the market. The credit cards users are always searching for credit cards with have lower average credit card interest rates (APR) which is around 15% on average.

In addition to that, in an earlier post, we have provided information about the top credit cards which are found to be having less APR. Do not forget to read that article, before coming back here about more latest news on everything related to credit cards. If you want low interest credit cards then we already discuss about it in our previous post. 

Lost Credit Cards are replaced

After you have lost your credit card, the first thing that you need to do is to report to cops. Then, you have gained the related documents to proof that the credit card was actually stolen, you need to contact the concerned credit card issuer and asking for them to provide you with a duplicated credit card.

Moreover, most of the people think that the credit card companies do not charge an extra fee for giving you another credit card but that is not always the case. Thought the charges may vary but on an average, you are needed to pay around fees of $5.

Learn about Credit Card Surcharges

Many people do not have a complete idea about the costs of credit card surcharges and tend to confuse it with the credit card convenience fees. You must keep in mind that the credit card transactions for small and large business owners are different from the personal users and so are the surcharge amounts.

In addition to that, the processing fees for the merchants are added along with charges of $0.35 which can be counted as costs for surcharge amount. However, the amount does seem to change but, on an average,, it is about 2% of the transaction amount.

Give over-limit fees

You need to always keep track on the amount of money that is being spend over weekly, monthly or yearly basis through your credit card(s). Also. you must also take into account that the over-limit keeps on changing and it seems to increase with using the credit cards for more time.

Moreover, you can also personally ask your credit card issuer to increase the credit card limit. All the banks which provide credit cards along with companies giving credit cards which seem to charge a nominal amount of fees which ranges from around $25 to $35.

Cash Withdrawal Payments

There is also a limitation on the maximum amount of cash that you can take out with the help of your credit card. After you have withdrawn cash, the different types of charges that are levied on it seems to vary according to different credit cards companies.

In addition to that, you must also know that, there are mainly two different types of charges that you have to pay for. Along with paying interest charges on withdrawn amount, the transactions costs that is charged on the cash advance amount is around 2.5% to 3.5 on a monthly basis.

Pay for free Credit Cards

One of the biggest misconceptions that many credit card users have is that, they are not required to pay any amount of money for using free credit cards. However, it is also important to know that, it is a myth.

Moreover, most of the offers in credit cards which are given by the issuers are made in order to attract more customers and increase their client base. All these discounts are part of the promotional offer as some charges are waived off in the initial year. The credit card companies put many rules in place in order to earn back that amount.

Things to Remember:

So now, these above pointers which we have talked about can help you have a plan in order to curb the costs in relation to credit card fees. You need to act smartly and always take the right steps so that you do not end up paying more in the bargain. One of the most vital problems that most people face is that, they do not have any idea about the way that credit card processing works. Do also remember that, there are plethora of choices out there in terms of the type of credit cards to choose. You must read the terms and conditions before taking any decision. In addition to that, you are also advised to take help from credit card experts who will give you the correct guidance in order to deal with credit cards better. Thus, the time has arrived for the credit card enthusiasts to take the right actions. However, do not forget to share your feedback with us.

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