Credit Card Charges: If you are planning to buy a credit card, then you must take care of some things i.e. the charges on it. Because in today’s time, the most joyful thing while taking a credit card is that now you will not have to wait for salary to buy anything.
If there is any emergency, then we will make the payment with the credit card charges immediately and will also withdraw the cash. But the most important thing is to know that how many types of charges the bank charges you on this card and you do not even know. Let us understand in detail about these charges.
Annual fee
Free credit card offer expires in one year. Thereafter, an annual fee of Rs 500 to Rs 3,000 is charged depending on the type of card and credit limit.
Fee for exceeding the overdraft limit
Free credit card offer expires in one year. Thereafter, an annual fee of Rs 500 to Rs 3,000 is charged depending on the type of card and credit limit.
Fee for exceeding the overdraft limit
This fee is collected from the customer when the credit limit is exceeded. Normally it is a fixed percentage of the overdraw limit. Sometimes it can be more.
Outstation check fee
If the customer pays the credit card bill by outstation cheque, the service fee is charged as a fixed percentage of the check amount. In this, the minimum fee is fixed.
Duplicate statement fee
Most of the credit card companies charge a fixed amount for issuing duplicate statements. There is no uniform amount fixed by any card company in this regard.
Foreign currency transactions
Transactions in foreign currency are converted into Rupees at the rate fixed by the Network Infrastructure Partner (Master/Visa). A fixed percentage is charged on this amount as fee.
Fees on petrol and railway tickets
A certain amount is charged as a fee for purchasing petrol and railway tickets with a credit card. This is a facility, which often people do not feel difficulty in paying.
Cash withdrawal charges also recovered
Fees are also levied for cash withdrawal through credit card. It can be a fixed percentage of the transaction amount. Some charge it normal and some more than necessary.
Revolving interest rates
Interest may have to be paid at the rate of 1.99% to 4.00% every month after the due date. Even though this charge seems reasonable, but on an annual basis, it goes up to 27% to 48%.
GST
GST is also levied at the rate of 18 percent on credit card fees, interest and other charges, so there is also relief from GST by reducing interest and other charges.
Late payment charges hit
Credit card companies charge late payment fees on every late payment made by the customer. It can be a fixed amount or a fixed percentage of the outstanding amount.
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