What Type of Credit Card Bank Fees Are There?

There seems to always be a group of consumers who put down those who pay penalty fees, saying ‘you should learn the first time’ or ‘simply spend within your means’ but it’s not that easy. While some consumers pay excessive bank fees out of carelessness, some simply can’t afford not to make the occasional repayment on time, or needs to breach their credit limit.

For those who pay an occasional fee, it’s fairly easy to dispute it as well, all you have to do is call up the bank and lodge a dispute.

Are consumers paying too much for bank fees?

The new ATM charges are pretty ridiculous – they can charge up to an automatic $2.50 for using a foreign bank’s ATM. Not a ATM overseas – just a competing bank within Australia.

Once again there’s always a group of consumers who sit on their high horse and say ‘Why don’t people learn and simply withdraw from their own ATM to avoid fees’ but not everyone has such close access to their own ATM, and are forced to withdraw from elsewhere.

Due to the nature of some people’s lifestyles, interests and careers they may have to make consistent cash withdrawals from ATMs.

Over the limit fees

If you exceed your credit limit by even a few dollars you’ll be auto imposed a two-figure fee which usually sits around $35. In relation to regular interest charges, this one’s ridiculous – if you made a $5 purchase with an interest rate of $5 and pay it a year later, you’ll owe $6 under normal circumstances.

If you exceed your limit by $5 and get hit with a $35 fee the next day, in terms of annual interest rate, it’s in excess of 10,000% APR.

Duplicate Statement fees

This is just an excuse for banks to make a quick extra dollar out of consumers. They won’t hesitate to waste paper and postage mailing you junk offers, but to print off another statement may cost up to $10. Simply use online banking and print off your statement online, in this day and age I don’t think anyone really has an excuse not to have internet access.

Foreign Exchange Fees

You can pay up to 3% of the transaction amount if you make a transaction overseas.

Balance transfer fees

-          If balance unpaid, reverts to standard interest rate of cash advance rate

-          Have to pay the upfront cost of the annual fee of the credit card you’re transferring to

-          If you make a purchase on top of your transferred balance, the purchase amount becomes effectively ‘locked in’ for repayment until the purchase has been paid off.

-          Consumers tend to kick back and relax knowing they’re balance is sitting at a cheap interest rate and are psychologically less inclined to repay their balance.

Avoid interest and fees as much as possible with a quality low interest rate credit card.

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