![]() You may also have to pay a transaction fee to use your card abroad. ![]() Additionally, many credit cards will charge a fee to withdraw money from an ATM. This is the money you’ll owe if you don’t pay back your credit card balance by the time it’s due.Ī credit card’s interest rate depends on the bank or financial institution it’s associated with and the type of transaction.įor example, a 19.99% interest rate is typical for regular purchases, but that rate may be higher for cash advances and balance transfers. Interest RatesĬredit cards also charge interest. However, there are some credit cards with low or no annual fees. ![]() Usually, annual fees come with perks such as travel incentives, cashback points, or no foreign transaction fees. Many credit cards have annual fees ranging from $29 to $699, depending on the card. In addition to the new fee we’ve just discussed, there are other more standard credit card fees in Canada that you’ll want to stay informed about. In Quebec, the Consumer Protection Act prohibits the new fee, so it will not be applied in that province. Either way, you’ll know if you’re getting charged the additional fee because that information has to be clearly posted.īut there’s an exception to this rule. On the flip side, they think that businesses that sell directly to customers are less likely to impose the surcharge due to fear of losing business. Some experts believe that businesses that sell to other businesses are more likely to add the surcharge. Here’s another angle: It’s up to each business whether or not they want to impose fees on their customers. Over time, that could translate to a lot of money.īut here’s the good news: Businesses and companies charging credit card fees must disclose information about these fees at the entrances to their in-person stores, on every receipt, and at the point of sale in person, online, and by phone. That might sound like a small percentage, but on a $1,000 purchase, that’s an extra $24. But now they could be coming out of your pocket.Īccording to credit card companies, the average fee is 1.4% but can be as high as 2.4% for smaller merchants or on expensive cards like American Express. They’re percentage-based charges that a merchant surrenders to credit card companies each time a consumer pays by credit card. Generally, the fees these businesses pay are known as “interchange” or “swipe” fees. Businesses were forced to pay the fees, essentially bundling them into the costs of goods and services. For a long time, these companies had pushed back against businesses passing fees on to customers. This is the result of a multimillion-dollar legal scuffle involving Visa and MasterCard. But now, it can be passed on to consumers. Previously, the businesses themselves were eating this cost. As of October 6, businesses can charge an additional fee on transactions conducted using credit cards.
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