With their increased usage post demonetisation, credit cards have become a necessity for modern-day lifestyle needs. Cardholders can buy goods in full payment or EMIs and repay the borrowed amount by the end of every month. If total repayment isn’t feasible, they can also convert the outstanding amount into manageable EMIs.
While these were the benefits, cardholders must also be aware of certain credit card charges levied on various events.
Additional read: What are the charges applicable on your credit card
Types of credit card charges
Different credit cards come with different charges as per their issuers’ terms and conditions, some of which you can avoid.
Below are a few common Credit Card charges
1. Rate of interest
Many people have the common notion that credit cards incur high interest rates, which can lead to debts.
While, the fact is, every card offers a grace period of up to 50 days post statement generation along with a due date. No interest is levied on the outstanding amount if you make the bill payment before the due date. Issuers charge high rates of interest only when you default.
Additional Read: What is CVV number
Again, if you avail an emergency personal loan on your credit card, you need to pay interest on the borrowed principal. Bajaj Finserv charges nominal rates and charges on its Bajaj Finserv RBL Bank SuperCard to ensure affordability and convenience.
2. Overdue penalty charges
If you default on the bill payment, overdue penalty charges or late payment fees are imposed over and above the interest rates. You can easily avoid these credit card charges by paying your monthly bill before the due date.
3. Annual fee
Issuers charge an annual fee for the privilege of using the payment card. The amount depends on various factors like features, benefits, card limit, etc. While many cards don’t charge this amount, those with annual fees offer maximum features and benefits.
4. International transaction charges
Credit card international transaction charges are imposed when you make payments or transactions in a foreign country. It usually ranges within 2% to 5% of the amount purchased. Opt for a credit card with zero or nominal foreign transaction charges.
5. ATM withdrawal fee
Credit cards allow users to withdraw cash from ATMs against a transaction fee, also known as cash advance charges. Moreover, the interest rate is charged on the withdrawn amount on a per-day basis. It’s usually recommended to avoid making ATM withdrawals using credit cards.
Additional Read: Check credit card balance
However, the Bajaj Finserv RBL Bank Credit Card allows interest-free ATM withdrawal when repayment is done in 50 days.
Besides these, cardholders may need to pay duplicate statement fee, outstation cheque fee, cash payment at a branch fee, call-a-draft fee, card replacement fee, etc. Here are the fees and charges applicable to the Bajaj Finserv RBL Bank SuperCard:
|Add-on card fees||NIL|
|Foreign currency transaction**||3.50% + GST|
|Cash payment at branches||Rs. 100 cash deposit transaction done at RBL branch and Bajaj Finserv branch effective from 1st July 2022|
|Surcharge on purchase/ cancellation of railway tickets||IRCTC service charges* + payment gateway. Transaction charge [Up to 1.8% + GST of (ticket amount + IRCTC service charge)]|
|Fuel transaction charge - for transactions made at petrol pumps to purchase fuel^||1.00% + GST surcharge on fuel transaction value or Rs. 10 + GST, whichever is higher|
|Reward redemption fees||A reward redemption fee of Rs. 99 + GST will be levied on all redemptions made on Bajaj Finserv RBL Bank co-brand credit card w.e.f. 1st June 2019.
|Cash advance transaction fee||2.5% of the amount (minimum Rs. 500 + GST) of the cash amount *effective July'20|
|Overdue interest on extended credit||Up to 3.99% + GST per month or 47.88% + GST per annum|
|Overdue interest on secured credit cards||3.33% per month or 40% per annum|
|Overdue penalty/ late payment||15% of the total amount due (minimum Rs. 50, maximum Rs. 1,500)
Effective from 1st July 2022, revised late payment charges are applicable*
|Over-limit penalty||Rs. 600 + GST|
|Finance charges (retail purchases and cash)||APR up to 3.99% + GST p.m. (up to 47.88% + GST p.a.)|
|Call-a-draft fee||2.50% + GST (minimum Rs. 300 + GST) of the draft amount|
|Card replacement (Lost/ stolen/ reissue/ any other replacement)||NIL|
|Duplicate statement fee||NIL|
|Charge slip retrieval/ copy fee||Rs. 100 + GST|
|Outstation cheque fee||Rs. 100 + GST|
|Cheque return/ dishonour fee auto debit reversal-bank account out of funds||Rs. 500 + GST|
|Merchant EMI transaction||Rs. 199 + GST|
Note that, as per RBI rules, merchants are not permitted to deduct credit card swipe charges from customers. They must bear these credit card swipe machine charges as rental fees for using this POS machine. Learn about all the fees and charges associated with your credit card and make its best utilisation accordingly.
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*Terms and conditions apply