Credit Card Fees Falling

July 28, 2016 by
Credit Card Fees Falling

61 out of 100 popular credit cards charge foreign transaction fees, which is down from 77 last year, according to a new CreditCards.com report.

This is a perfect example of the over trend toward fewer fees—the 100 plus cards currently charge a total of 593 fees, also down from 613 last year.

“Many card issuers are eliminating foreign transaction fees in an effort to win business from high-spending international travelers,” according to Matt Schulz, CreditCards.com’s senior industry analyst. “Since the typical foreign transaction fee adds $3 to every $100 spent abroad, eliminating this surcharge is a smart way for issuers to get their cards to the tops of travelers’ wallets.”

CreditCards.com provided a list of the cards with the most potential fees and the cards with the fewest potential fees:

Most Potential Fees

First Premier Bank Credit Card (12)
First Premier Bank Secured MasterCard (12)
Club Carlson Business Rewards Visa (11)
Credit One Visa Platinum (11)

Fewest Potential Fees

Pentagon Federal Credit Union Promise Visa Card (0)
Capital One Platinum (average credit) (2)
Capital One Secured MasterCard (2)
Capital One Spark Cash Select for Business (2)
Journey Student Rewards from Capital One (2)
SonyCard Visa from Capital One (2)
Spark Miles Select by Capital One (2)
Spark Classic from Capital One (2)

Some highly recognized card issuers in both categories, begging the question of why are these cards continuing to issue these foreign fees knowing their competition do not?

On average, credit cards have six different fees. Late payment and cash advance fees are almost entirely universal in the card game. Balance transfer fees are another household staple when it comes to credit cards.

In fact, only 25 of the 100 cards charge an annual fee and only 6 charges an over limit fee.

Over the past year, the most frequently eliminated fee is for paper copies of past statements, and most added fee is for stopped payments.

“The trend toward fewer credit card fees is a great thing for consumers,” Schulz said. “It’s such a crazy-competitive time in the credit card business and lower fees are just another way that Americans are reaping the benefits,” commented Schulz.

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