Credit Card fees and charges: Comprehensive guide

Credit Cards have become an indispensable financial tool for many. They offer the convenience of cashless transactions, rewards and the ability to manage unforeseen expenses. However, it's crucial to understand the various credit card charges and fees that come with this convenience. This knowledge not only helps in making informed choices but also in avoiding unexpected costs. In this guide, we'll explore the different types of credit card charges applicable in India and how Axis Bank's offerings can be a smart choice for your financial needs.

Types of Credit Card charges applicable

When it comes to credit cards, awareness is key. Here are some common charges you should be aware of:

Charge Type	Percentage Range / Flat Fee	Explanation
Annual Fee	0% - 3%	Yearly charge for using the Credit Card .
ATM Withdrawal Fee	₹300 - ₹500 per transaction	Fee for cash withdrawals using a credit card at ATMs.
Annual Fee	0% - 3%	Yearly charge for using the credit card.
Cash Advance Fee	2.5% - 3.5%	Charged for cash withdrawals, also known as a credit card cash advance charge.
Late Payment Fee	₹100 - ₹1,000	Applied when payment is missed by the due date.
Over-limit Fee	2% - 3%	Charged when expenses exceed the credit limit.
Balance Transfer Fee	1% - 2%	Fee for transferring the balance to another card.
Foreign Transaction Fee	1% - 3.5%	Applied to transactions in foreign currencies.
Interest Rate (APR)	24% - 49% per annum	Annual percentage rate charged on unpaid credit card balances.
EMI Conversion Charges	1% - 2%	Fee for converting purchases into EMIs.
Card Replacement Fee	₹100 - ₹250	Charged for a new card in case of loss or damage.
Duplicate Statement Fee	₹50 - ₹100	Fee for issuing a duplicate statement beyond the free limit.
Credit Card Processing Fees	1% - 3%	Applied to various transactions based on card terms. Also known as Credit Card Transaction Fees.
Overdraft Fee	₹500 - ₹1,000 per instance	Charged for using the overdraft facility on a credit card.
Dishonour of ECS Charges/Cheque Bouncing	₹100 - ₹500 per instance	Charged when an Electronic Clearing Service (ECS) or cheque for credit card payment is dishonoured.

Note: The actual percentages and charges may vary based on the credit card issuer and specific card types. Always refer to the terms and conditions of your specific credit card for the most accurate information.

Also Read: What is Credit Card limit?

Being vigilant with Credit Card charges

While Credit Cards offer convenience and rewards, it's crucial to be aware of the various charges that can accrue. Here are a few tips to help you manage Credit Card Fees effectively:

• Monitor your spending: Keep an eye on your credit card usage to avoid going over your credit limit, which can incur over-limit fees.

• Pay on time: Always pay at least the minimum amount due before the payment deadline to avoid late payment fees and high-interest rates.

• Cash advances: Use cash advances sparingly as they attract high cash advance fees and interest rates from the day of withdrawal.

• Understand foreign transaction fees: Be mindful of foreign transaction fees when using your card abroad or for overseas online purchases.

• Check for annual fees: Some credit cards charge annual fees. Review your card's fee structure and consider if the benefits outweigh the cost.

• Balance transfers: If considering a balance transfer, be aware of any associated fees and interest rates post the introductory period.

Also Read: Credit Card fees: Myths and misconceptions

Conclusion

While Credit Cards from Axis Bank offer a plethora of benefits, ranging from convenience to rewards, it's essential to stay informed and prudent about the various charges that can accompany their use. By choosing an Axis Bank Credit Card, you get the advantage of transparent fee structures and competitive interest rates, which can significantly enhance your financial management.

Remember, a credit card can be a powerful financial tool when used responsibly. So, choose an Axis Bank Credit Card for its myriad benefits, but also stay mindful of the charges to make the most of your financial journey.

FAQs

What is the fee for using a Credit Card?

Credit Cards come with various fees. This includes an annual fee ranging from 0% to 3%, ATM withdrawal charges between ₹300 and ₹500, a cash advance fee of 2.5% to 3.5%, and Credit Card late fee charges ranging from ₹100 to ₹1,000. Other fees include an over-limit charge of 2% to 3%, a Credit Card balance transfer charge between 1% and 2%, foreign transaction fees ranging from 1% to 3.5%, and an annual interest rate of 24% to 49%.

How to avoid Credit Card annual fees?

To avoid Credit Card annual fees in India, opt for cards with no yearly fees, negotiate with your bank, or spend enough to qualify for fee waivers. Utilise reward points to offset costs and consider switching to a different card if the fees are unavoidable. Always read the terms carefully.

Do Credit Cards have monthly fees?

Monthly Credit Card fees often include interest. Issuers charge interest based on the remaining balance in your account, using an annual percentage rate (APR) divided by 12 for the monthly rate.

How to check Credit Card fees?

Review your Credit Card statement or visit your card issuer’s website to check Credit Card charges or fees. You can also call customer service for clarification.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.