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Credit card-14 Hidden Charges You Never Know These Charges


Credit Card Hidden Charges

Credit Card Hidden Charges

In this post, I will discuss an important topic those credit card hidden charges.

When the people take credit card so there are many hidden charges are available on that card.

We all don’t know about these charges which are very harmful for us and these charges make our pocket empty, without you even realizing.

Credit card is a debt with the high-interest rate about (20-25%).

So in this post, we will discuss all hidden charges related to credit card.

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My Name is sarvesh and I usually write an article on my 

blog Taxinvestcare about personal finance.

In India many company or banks who provides credit card. we also know about SBI credit card charges, HDFC Credit card Hidden Charges, ICICI Bank Credit charges.

14 Credit Card Hidden Charges


Late Payment Fee

Cash Withdrawal

Interest Charges

GST@18%

Annual Fee

Over Limit Charges

Check Balance- or Auto Debit Reversal

Foreign Transaction Currency Value

Railway ticket Booking or cancellation surcharge

Fuel Transaction Charges

Lost/Stolen/Damaged Charges

Cash Payment of Branches

Outstation Cheque Charges

Late Payment Fee


Late Payment Fee as it name suggest this fee is charged if the credit card holder makes their payment late.

And if minimum due is not paid with a due date so credit card or bank charges you for late payment.

It is a flat fee according to card companies and bank it’s very around 300Rs-100Rs.

Cash Withdrawal


Second credit card hidden charge is cash charges withdrawal charge.

It is a charge which is deducted by companies and bank for withdrawal of the cash from ATM (Automatic Tailor Machine).

It is around 2-3% of the cash Amount.

For example, if you withdraw 1000Rs from ATM so 20-30Rs will be charged.

Interest Charges


It is very important charges these charges play a major role in credit card charges.

These charges make a profit for card companies and banks.

Interest charges are very high charges of around 2-4% per month and 30-40% per annum.

It is a very costly debt for any person.

So if you pay the interest of credit card that it will gives you loss, so pay your credit card bill on time.

The companies and bank charges you interest rate if you are not paying your bill before the due date.

They also charge an interest rate on cash advance or withdrawal cash.

One more thing you need to know late payment charges are also comes in interest charges category.

Overall conclude is that if you do not pay any amount so being ready to pay high-interest charges.

GST@18%


GST is applicable on all other charges like late payment fee, cash withdrawal, interest charges on the all additional charges the GST charges are applicable at the rate of 18%.

One more point you need to know that GST applicable on interest charges.

It looks like a loophole but in the financial act you will charge GST on EMI (Equated Monthly Installment).

On the credit card EMI you have to pay GST.

So these are four main charges on the credit card.

Annual Fee


Many card companies charge an annual fee, you must hear that most of the company provides a lifetime annual fee card.

But generally, it’s free for 1st year after that you need to pay an annual fee.
It’s around 250-2000 P.A.

It’s Vary on the basis of Credit card companies.

Over limit charges 

This charge for over-limit transactions.

For example, you have a card with limit 50,000 but expend more than 50,000 so bank or company charge you some fee on the transact amount.

It’s around 2-4% on the amount you spend beyond credit limit.

Cheque Bounce or Auto- Debit Reversal


If you use a cheque for the card payment or if you fix auto-reversal (automatic debit from the account) is missed so you have to pay some charges.

It’s around 200-500 per instance.

Foreign Currency Transaction Fee


If you have done any international payment so you need to pay charges around 3-4% of the transaction value.

Fuel Transaction Fee


Your kind information. If you pay the bill with your the credit card on the petrol pump so they are charging you some processing fee,
It’s around 1-2.5% of the transaction value.


   Railway Ticket Booking or cancellation Surcharges


 There is one more charge on the credit card that is applicable for ticket booking or surcharge.

If you book any railway ticket with your credit card so the government charges a fee.

It would be around 1.5-3% of the transaction value.


Lost/stolen/Damaged Card Charges


In any cars, if your card is lost or damaged you pay some amount for the new credit card.

It will charge you the amount of Rs.100-200.

Credit card statement Charges


If you want to certified credit card statement for your card so the card company or bank will charge some amount of Rs.100-200 for more than 6months-1Year Statement.

If you get an online statement that it will free of cost.

It is generally used for address proof.

Cash Payment at Branches


If you pay your credit card bill in cash at the branch so they charge some amount because most of the card companies and the bank want to online payments.

It will charge Rs.100-200 per instance.

Outstation Cheque Charges


If you use an outstation cheque for payment so again you will pay some amount around 50-200 per instance.

Most of the bank way of these charges.

    Conclusion:- 

        The Overall conclusion is credit card doesn't make any profit for us but if we use it smartly so we can prevent it from its debt.

        so these are the hidden charges that you must know this guide will profit you when you buying            credit card,
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1 Comments:

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Justin Wade
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July 9, 2020 at 8:34 AM

A portable ecommerce gateway processing widens the range of opportunities for business owners to accept credit cards of their customers. In the time when the whole world tries to gain more freedom by cutting the wires and going mobile, even the static businesses will benefit from owning a portable card processing device. Not to mention the ones which provide the services and sell the goods remotely: for this kind of organisations a wireless terminal is an irreplaceable item. Within a blink of an eye you will be able to process transaction from a booth at the market or near the stadium, in a taxicab or at the client's door after having made a delivery.

Congrats bro Justin Wade you got PERTAMAX...! hehehehe...
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