Credit Card Fees & Charge | Credit Card Hidden Charge – Credit Card Fact

Most of the credit card user doesn't know fully about credit card’s fees and charges. That’s why several times we suffering from many unwanted credit card bills which we called Credit card is hidden charged. As a result, often this may cause interest or fines on the card, which will cause you to refrain from using a credit card and slander the issuer bank. But remember one thing that nothing in life is free. To avoid credit card unwanted bill or hidden charged, A credit card user should know all types of fees & charges about credit cards. Today we will explain all kinds of credit fees and charges.      

Credit Card All kind off Fees & Charge in Bangladesh | Credit Card Hidden Charge 

Annual Fee:  

Each credit card has yearly maintenance charged it’s called Annual fee. The credit card annual fee amount differ on card types. When any salesperson offers you a free credit card it does not mean that lifetime free, it’s may free for 1st a year or 2 years as per credit card issuer campaign, onwards second-year annual fee waiver each credit card issuer has own rules. One thinks mind that credit card annual fee charged on the pre-paid system. So, before applying credit card must cross-check with issuer bank or company.

Transactions Alert Fees:

For each credit card transection’s issuer bank will notify cardholders also cardholders will get some facilities by SMS service. that’s why the bank will charge transaction alert fees it’s may charge monthly or yearly.

VAT Or GST:

Remember must that 15% VAT or GST (General Sales Tax) will be charged as applicable upon credit card fees and charges. Also, on the online boost transactions Vat applicable as per BB guideline.  

CIB Fee:When you applied for a new credit card or applied for Credit limit enhancement then CIB (Credit Information Bureau) will apply, this is a charge of the central bank.

Interest Charge:

In credit card bill you will show total bill and minimum bill, if you pay the total bill every month as per statement then no interest will charge on your card. Most cardholders choose to pay only the minimum payable amount assuming that the rest can be paid later. In this case, (1.5% to 3% interest rate monthly and 18 % to 36% yearly) interest is charged per month on the outstanding amount from transactions date or payment due date as per bank or issuer policy. Which is interest too high. Hence, all possible credit cardholders will have to struggle to pay their bills in full and not just the minimum bill amount.

Late Payment Charge:

If any cardholders do not pay his/her full or a minimum bill within due date, an additional charge is applicable which called Late Payment Charge.  Late payment charge the amount is fluctuating with credit card type (Silver card, Gold Card, Platinum Card, Signature Card, Etc.).

SI Charge:

When cardholders set auto debit payment method form account to the card, in case of the insufficient fund in an account, if auto-debit failure then SI Charge (Standing Instruction) will change on card.

Over Limit Charge:

If any cardholder exceeds the monthly credit card limit, in that case, an over-limit charge or excess limit fee is applicable. This charge amount is varying on credit card type wise (a Silver card, Gold Card, Platinum Card, Signature Card, Etc.).

Insurance Fee:

Maximum Bank’s credit card has Insurance facilities, in case of cardholders accidental death or permanently disable bank will recover the outstanding balance from the insurance company. Mention that here have some good facilities for the cardholders. The insurance fee is 0.35% on outstanding balance every month. If cardholders want, he/she card stop this service.   

Card Replacement Fee:

When you lost your card or in case of card physically damaged & and you want to re-issue a new card then this applicable. This charge amount is varying with credit card type.  

Pin Replacement Fee: 

If you have forgotten your card security pin and want to replace it then this will apply. This charge amount is varying on credit card type wise.

Cash Advance Fee:

Cardholders have the option of withdrawing cash from ATM Booth or Branch POS by credit card. However, each transaction charge is applicable would be 2.5% or Bank allocated amount whichever is higher. Note that, ATM transactions have no interest free period.

Return Cheque Charges: 

When cardholders pay credit card bill by account payee cheque, in case of the insufficient fund in account and cheque has been bounce then this charge will apply.   

Duplicate Statement: 

Every Month the bank we sent you're statement hard copy or e-statement if you want the second time or you need last The 6-month statement then the bank will charge this.

Certificate Issuance Fee:

On the requirement of cardholders, the bank will issue a different type of certificate like as NOC/ NLC/ NOD etc. then the bank can be charged for this.

Card Cheque Book: 

For first card checkbook with the new card it’s may bank will issue free, but from the second card, checkbook bank must charge.

Card Cheque Processing Fee: 

When the cardholders withdraw cash by card cheque then cheque processing fee will charge 1% to 3% on the withdrawal amount.

Loan Processing Fee: 

Many banks offering different types of credit card loan facilities like Super loan, Fast loan, etc. It means cardholders can withdraw cash and convert it's EMI system for 6 to 36 months. In that case, banks charge processing fees 0.5% to 2% of the loan amount.

EMI Early Settlement fee: 

When cardholders take any EMI facilities from the bank by credit card for a certain period. If the cardholders want to full EMI amount & close this EMI facility before the finish the EMI tenor. Then EMI Early Settlement fee can be charge 0.5% to 2% on outstanding EMI amount.

Priority Pass Lounge Visit Fee: 

Credit cardholders who take priority pass he/she access to use airport lounges without cost or with the cost. First banks issuing PP free as per selected cardholders request if cardholders lost this PP, he/she may replace it with the cost. PP visit fee is $27 per visit, Banks can offer cardholders free PP visits as conditions.

Markup Fee: 

When credit cardholders made any transactions excepting his/her local currency and USD. Then VISA or MASTER added 1.0% to 3.0% Markup fee when transaction currency converted to billing currency. cardholders will not show this fee in credit card statement due to after adding this fee with transactions bank will send a statement.

Excise Duty:
If last year your credit card outstanding balance crossed BDT 1,00,000 then excise duty will be charged as per below. This charge realized by Bangladesh Bank.

Excise Duty on Credit Cards
Credit Card Outstanding	Excise Duty Charge
BDT 1 to BDT 100,000	NIL
BDT 100,001 to BDT 500,000	150
BDT 500,001 to BDT 10,00,000	500
BDT 10,00,001 to BDT 1,00,00,000	2500

Card Closure Fee: 

Normal the credit card has no closure fees; cardholder can close the card at any time but only for secured (lien) card closure charge will apply.

We tried to tell you all kinds of credit card charge it does not mean that in every card that charge will impose. Credit card is a very important part of our digital life, so before using the credit card must be aware of credit card fee and charge. Before applying for a new credit card please check, the issuer bank's website or call to contact center for details.