Even if in recent years, thanks to the diffusion of digital payment systems, the costs of credit cards have decreased a lot and it is common to find cards with no fee and with low costs, we must still pay attention to what we could define as costs ” hidden”, that is additional fees and expenses that banks charge customers and that can make signing up for the card more or less convenient.
Depending on their nature, we can divide these hidden credit card costs into three different categories:
- the costs associated with maintaining the card;
- the costs associated with transactions carried out with the card;
- the costs charged for additional services or extra features offered to customers.
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Card holding costs: what are they?
When applying for a credit card the bank may require one card issuing fee. Although today there are many banks that allow customers to sign up for a credit card for free, some still provide for the payment of a commission in the event that the cardholder requests a duplicate or needs one replacement card following theft, loss, breakage or damage to the main one.
We may also include the fees required for handling your payment card as part of the card holding costs via thehome banking. Almost all lenders offer this service for free, but you need to check that there are no hidden costs in this regard.
Studying the offers of lenders in depth is the best way to be able to identify the most convenient and cheapest cards.
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What are the commissions associated with card transactions?
The highest expense items for those using a credit card are related to card handling operations. The most common costs are those relating to i cash withdrawals: using the credit card at the ATM, for example, involves a commission that is around 4% of the amount withdrawn.
A further hidden cost to consider is that required for theissue of the account statement. Although in most cases the banks provide for the possibility of consulting the account statement free of charge through the home banking service, it is advisable to consult the contract to check whether any costs are applied for requesting and sending the paper account statement.
One of the hidden costs to pay more attention to is related to commissions related to payments made in a different currency or in a foreign country. Especially those who travel often should read the contract provided by the bank in depth and check which rules are applied by their credit institution.
Sometimes banks apply costs in some particular cases of account handling: commissions may be envisaged which are charged in the event that an amount of money lower than a certain threshold passes through the account or if the credit card remains inactive for a certain period of time. Even those who handle the card often risk incurring extra costs: in fact, many banks charge a commission in case of exceeding the limit made available.
In all these cases, comparing the offers of several banks and choosing the one that has the best cost profile is the best solution to save money without giving up an excellent level of service.
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The fees required for additional services and extra features
Those who have special needs or have chosen to subscribe to a credit card with advanced features should find out about the commissions and costs required for accessing the services linked to your card. For example, credit cards often allow access to airport lounges or the booking of airline tickets and services related to the world of travel. To avoid unpleasant surprises, it is important to check the economic conditions of the various services you are interested in and check that there are no commissions to pay.
When we talk about the hidden costs of credit cards, we cannot fail to mention the revolving credit cards. This particular type of credit card provides the customer with a ceiling that can be replenished by paying in a single solution or in instalments. The commissions and interests to be paid to the bank must be evaluated with great attention in order to be able to have effective management of one’s liquidity.
