Credit card charges – Do you expect Credit card charges are very unusual paying bill? Therefore charges seemed unwanted payment bill of a credit card, for which an individual would never like to Credit card Bill payment including charges,
Therefore, if every credit cardholder would know mystories behind charges, they could not bear such burdens, so After reading this article, Warning and informative information will make you cognizant of Credit card charges, like, How should be a Credit card managed? And What to avoid during Credit card Transaction, So let’s get started with charges related concern for which an individual bear Credit card charges,
Credit card fees explained
Contents
Credit card charges levied upon delay Payment, Crossing limit/Over Limit, ATM Transactions, and Membership Fee or Joining Fee, These are certain cases in case of additional Charges levied on your credit card, So essentially understanding these scenarios are the key points for every credit cardholders,
Delay Payment- To avoid Late payment, please be aware of the Billing due date and also should keep overall Debit Transaction records.to maintain it, once to come to credit card current statement details, it will give you a snapshot idea of the total current outstanding balance, So that on-time credit card bill payment is possible,
Crossing your credit card Limit-As per my assumption, a Credit card Limit to use up to 70% of the total is considered often Good, avoid Over-Limit, Stop transactions ahead once you reach the maximum usage of Credit card Limit, Make sure to keep the total usage only up to 60% If EMIs Running, else, enough credit card Limit usage is suggested, sometimes, 99 % of the total usage of card Limit accompanied By the running Emis Installment which Includes GST, Total credit card Limit gets consumed and levied Over Limit charges,
ATM Transactions Via Credit card-Credit card issuer company lets you use a Cash advance up to 30 to 40% of your credit card total amount, but the harsh problem is that from day one interest charges start levying on the Cash withdrawal amount. therefore, ignoring such transactions escape you pay the extra charges,
Membership fee charges– Majority of New Credit cardholders Never check issuer company’s terms and conditions regarding Credit card fee & Charges, And unknowingly almost customers are provided a credit card with a Membership fee, Although Some of them accept Credit card when They Find Credit card is Life Time Free, But not in actual, Such cardholders wander when they check Membership fee on their Credit card statement without awareness, and they refuse to Pay due to false promised credit card assigned to them, so a suggestion for you is to ask properly about membership or Joining fee or else if They provide you Lifetime free credit card,
Credit card fees and how to avoid
Joining fee– Employee from a Credit card issuer company might call you and give you a descriptive explanation about credit card benefits and features but not about Charges, You are untold about hidden charges, But a few Bank that provides credit cards Lifetime free, without any Joining fee, if application criteria absolutely match to the Bank’s terms and conditions, such as HDFC Bank credit card LTF, etc, therefore, ask the credit card Joining fee before someone offer you a credit card, else you apply it online, I got hdfc credit card but I completed a few conditions after then my credit card became Lifetime free,
What is the charge for credit card transactions?
Although the Credit card processing fee varies from card to card you apply for, however, check the below tablet that shows the overall approximate processing fee
| Credit card processing Charges | Credit card Network |
|---|---|
| 2.5% to 3.5 % | American express |
| 1.5% to 2.5 % | VISA |
| 1.57% – 2.4% | Discover |
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Passing on credit card fees to customers
Customers pay credit card fees without their awareness of smart usage, Learning Credit card Smartly usage always; Once they would pay the charges, makes them disappointed not to carry credit card further, but it’s not a solution to such problems, Customers should use their credit card in a way that considers these 6 tips to follow to never come across debt burden through a credit card,
Transactions Awareness and Credit card usage is essential to all of the customers if they want to avoid the fee, Moreover, I have some other transactions details that you should avoid a credit card on that platforms,these platforms are given below-
- Avoid Purchasing jwellary products from a credit card ,instead use a Debit card
- Jwellary purchased products via credit card hardily convert in EMI
- Petrol pump Credit card swipe
- International transactions without awareness because FCY charges applicable up to 1 to 2% on your transaction,
Credit card fees for merchants
Although Card variants(Visa, Discover, Master etc) issuer companies often set a charge that Bank often takes from you, wherever credit card is used for any business purposes, or personal buying products purchases/shopping purposes, pay some extent of fee from your credit cards, in addition to Bank charges, sometimes Merchant also take a fee, like, You Purchase a product from a merchant site, you might notice that They charge you a convenience fee to deliver you that particular product at your doorstep, that charges also included with the Product prices. so basically you might not know the sorts of Merchant fees,
- Interchange
- Flat rate
- Tiered
interchange fee– A fee that a credit card processor often charge a small mark up fee and these interchange fee are determined by card networks such as Visa, when you processing a credit card, such charges are applicable due to it is transparent charges, Although I wouldn’t forecast exact charges,
Flat Rate- When an equal particular fee is specified on every business transaction, during credit card swipe you might pay the fee up to 2.5 % on debit transactions, it deciphers your effective rate if you process a small portion of debit transactions from your credit card, you can take the advantage of deciphering, You can understand through this calculations; Let’s say you use 2.5% plus 30 cents per credit card swipe applied to $200000 in annual card volume with an average transaction of $5; then flat rate would be $17000 making an effective rate 17%
$200000 *0.025= $ 5000 credit card revenue annually,
$200000 /$5 =40000 Average transactions,
40000*0.30= $12000 fess per credit card swipes,
$5000 +$ 12000 = $17000 total owed,
Credit card processing fees calculator methods
Everyone loves paying debit transactions via credit cards, although they do know, with the credit card processors, some additional charges are taken, thus if you happen to use “credit card processing fees calculator” that can be calculated by yourself, to find an effective rate manually, please use the following formula,
Effective Formula of Credit Card Processing Rate Calculator–
Formula= Total Amount Paid for Credit Card Processing / Total Monthly Sales *100
For example, if your total credit card processing fee is $130, and the total sales volume is $ 2600, then the effective credit card processing rate is $130/$2600*100 = 5%
Please note here that the effective rate reveals the cost of each credit card processing sale if it costs $130 to process $2600 worth of card sales then the effective processing rate is 5%. Each dollar process costs you 5 cents
Credit card charges for businesses
credit card charges the Philippines
Conclusion -After reading this article, you might have known the tips to save credit card charges and How many charges often you pay through your credit card, if anyone of you have a question That is not mentioned in this article, then please ask the question in the comment section, also if you want to share our blog, please do it for us, for more information,
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