Consumer Payment Card News

CARD Act Impact

While some provisions of the new “Credit CARD Act” take effect today the credit card industry will be undergoing fundamental change over the next five months to adjust to the full impact of the new regulations. Pay close attention to ANY communications from your credit card provider between now and next year as there is a NEW GAME in town. Starting today, cardholder statements must be mailed at least 21 days before the due date and any fee/rate changes require a 45 day notice with an opt-out. So far, some major issuers have decided to eliminate over-limit fees, but have boosted other fees or raised interest rates. notes that issuers have experimented with many types of fees over the past 25 years including:

1. Annual Fees: ($20-$50; higher for rewards cards)
2. Monthly Fees: ($5-$10; could in addition to an annual fee)
3. Inactivity Fee: ($20-$30; accounts without new transactions)
4. Account Closing Fee: ($20-$40; for a customer-initiated closing)
5. Buy-Down Fee: ($50-$100; guarantees a lower APR for a fixed period)
6. Monthly Paper Statement Fee ($2-$5; or receive e-statements only)
7. Customer Service Fee: ($2-$10; to talk to agent unless fraud related)
8. Copies of Statements: ($5-$10; for paper or electronic)
9. Card Replacement Fees: ($20-$40; unless issuer-initiated or fraud)
10.IVR Fees: ($2-$5; for excessive phone account inquiries)
11.Additional Cards Fee: ($20-$50; for authorized users)
12.Credit Line Increase Fee: ($20-$50 for each request)
13.Enhancement Fees: ($20-$100 for insurance and other benefits)
14.Reinstatement Fees: ($15-$50 to reinstate lost rewards fro default)
15.Bonus Reward Fees: ($20-$100 to accelerate points/miles/cash rewards)


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