Fee Structure Of Business Credit Cards

Fee Structure Of Business Credit Cards

  • Cash advances fees: You can apply for a cash advance against your available credit. The interest rates are usually high on cash advances. A cash advance fee can be avoided by budgeting funds in the transaction accounts.
  • Foreign ATM fees: Any transaction you make from your card at an ATM which is not partnered with your financial institution, results into fees. Make all transactions at your own bank’s ATM and avoid extra charges.
  • Card surcharges: It is legal for a merchant to charge an additional amount to a credit card holder. The merchant covers the processing cost of the transaction. Ask the merchant if there is a surcharge before you make your purchase. You can pay with an alternative method to avoid the surcharge.
  • Foreign currency fees: If you travel countries with a different currency than your home country, you may want to consider obtaining a credit card with the most competitive fees. Banks charge additional fees for converting the currency from your account to the merchant’s account.
  • Late payment fees: When you fail to make a payment on time, you will be charged with a late-payment fee. This fee is often the result of an electronic payment done over a weekend. In a case like this, the payment does not reflect on the card the same day. You can avoid late-payment fees by paying the card several days before repayment is due. A direct debit can be set up to ensure that payments are always made in a timely manner.
  • Over limit fees: If the amount of your purchases exceeds the credit limit, financial institutions charge over limit fees.
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