Credit card fees – prepaid credit card
If you are looking for information on the term: credit card fees then you have come to the right place.
There are various fees that can be charged by the bank or the credit card company in the area of a credit card.
Credit card annual fee
Many credit card providers charge a so-called annual fee. However, there are exceptions, i.e. credit cards with no annual fee, which we have called free credit cards in the portal.
The annual fee, insofar as it is available for the respective credit card, is to be understood as a basic fee; expenses of the credit card company, such as the card issuing or administration costs, are to be covered.
Credit cards cash withdrawal fee
Consumption is now so well brought up that a fee for withdrawing cash from an ATM with a credit card or an EC card is generally accepted. For credit cards, this fee is calculated as a percentage of the respective payment amount. In addition, a minimum fee is often charged for small amounts. If, for example, foreign currencies are withdrawn while on vacation, the amount of money paid abroad is added to the international remuneration.
You should ask yourself whether you should accept such a practice? After all, it is your money that you have already earned. Because it is not clear to pay another fee if there are providers whose credit cards allow you to get your cash free of charge worldwide.
Credit card overdraft interest
With a correct credit card (not prepaid credit card) you can use the previously agreed credit line. Overdraft interest (debit interest) accrues. However, many credit cards are billed on a specific billing day. Up to this day, the amount overdrawn is free of interest.
Credit card foreign fee
Another fee is the foreign assignment fee or also known as the international assignment fee. This foreign fee applies if you use your credit card for cashless purchases in non-EU countries. This means that the respective national currency is not the USD, for example in the USA. This also applies to foreign currency purchases on the Internet or cash withdrawals. Since the credit card account can ultimately only be debited in the USD currency, the amounts must be converted into USD. You can calculate around 2% of the invoice amount. This is to cover the effort for the conversion into the respective national currency.