Do you get charged a fee for using a credit card?

No More Credit Card Usage Fees

Effective January 13, 2018, usage of credit cards for purchases has become fee-free. This eliminates the previous practice of businesses charging a small percentage (typically 2-3%) for the convenience of using a credit card.

Exceptions for Business Cards

While consumer credit cards are now free to use, business cards may still incur charges. This is because businesses often have higher processing costs associated with credit card payments.

Interest Remains a Cost

It’s important to note that while usage fees have been eliminated, interest charges remain a potential cost of using a credit card. Interest is charged on unpaid balances, and it can accumulate over time, increasing the overall cost of the purchase.

Benefits of Fee-Free Credit Card Usage

Eliminating usage fees provides several benefits for consumers, including:

• Reduced costs: No more added expenses on purchases made with credit cards.
• Convenience: Using a credit card is now more accessible and affordable.
• Encouragement of credit card use: This move may promote the use of credit cards for purchases, potentially increasing consumer spending and boosting the economy.

Cautions

While fee-free credit card usage is a positive development, consumers should still use credit cards responsibly. It’s important to:

• Pay off balances in full and on time: To avoid interest charges.
• Monitor spending: Keep track of purchases to prevent overspending.
• Understand the terms and conditions: Be aware of any potential fees or penalties associated with a particular credit card.

By following these responsible practices, consumers can enjoy the benefits of fee-free credit card usage while maintaining financial control.