Consumer Payment Card News

Card Fees

U.S. credit card issuers charged consumers an estimated $30 billion in fees last year, about 6% higher than 2006. Merchants shelled-out about $33 billion to accept credit cards. More the half, or $18 billion, of the cardholder fees were penalty fees such as over-limit fees, late payment fees or returned check fees. Late fees accounted for the lion’s share of penalty fees, making up about 70% of the $18 billion figure. According to research by credit card expert R.K. Hammer, cash advance fees accounted for $8 billion of the total fees charged. Near $3 billion of annual fees were charged and card issuers generated $700 million in fees related to enhancements or special perks. U.S. cardholders also paid at least $97 billion in interest charges last year.

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