With so many new regulations being placed on credit card companies throughout the United States, there are many new credit card fees being added to the obligation of the consumer because the credit card companies are now looking for new ways to make money. This is why it is important for both consumers as well as merchants with merchant account services to be weary of these potential credit card fees.
In light of all that has happened with credit card companies because of the most recent recession, credit card companies are being prohibited from certain industry revenue practices these huge companies used to count on to make money. As a result, new credit card processing fees to the merchant and the consumer are popping up everywhere. Some of these changes include lowering credit limits and switching from fixed to variable interest rates. There are also several new, different types of obscure fees that consumers need to watch out for including reward redemption fees. Many consumers and credit card users might pick a credit card company based on the fact that many will offer various rewards. However, just because it is a reward that does not mean you should expect it to be free. This type of fee is usually associated with airline miles redemption. However there are some ways around being charged the fee. Each credit card company is different so if you are looking for a way around being charged the fee, be sure to check with your credit card company to be sure.
Another one of the most obscure, but becoming increasingly common credit card fees are foreign transaction fees. This credit card fee is charged to conduct transactions that involve a foreign bank. This is something international travelers must be very cautious of when traveling. Be sure you know and understand exactly how much the fees are before you plan to use your credit card while traveling or you could come home to an entire mess of fees. Other fees include reward recovery fees. This usually happens when the user is late with their payment and they will get their reward fees taken away in addition to the late fee the user is also charged. Activity fees are also charged to customers who don’t use their credit card. If you have your credit card for emergencies only be sure to make sure and sign up with a credit card company that will not charge you for not using your card otherwise you will end up paying regardless.
When it comes to merchant account services it is important for both consumers and merchants to know and understand all of the fees and interest rate information that is associated with their merchant account and credit card account. Another type of fee that is a bit more common is the payment protection fee. While this fee has been around for a lot longer than the newer fees popping up, it is becoming more expensive. However, users are typically concerned about knowing if their credit card information has been stolen or compromised. This is why many credit card users will be willingly charged this credit card fee. However, some credit card companies are better than others. Be sure to shop around to see which companies offer the best security for a reasonable price. Other fees now are beginning to include the paper statement fees. Most credit card companies are working to develop a paperless system that can actually save both the customer and them money. However, if a person still wants a paper statement each month, they are going to have to be willing to pay for it. Knowing and understanding all of the fees associated with each credit card company is important in understanding which merchant account services are the best option for you and your business.