The One Credit Card Fee You Should Never Pay

Tuesday, September 23rd, 2014
Updated: September 23rd, 2014
The content is accurate at the time of publication and is subject to change.

Late fees. Balance transfer fees. Inactivity fees. Swipe fees. Overlimit fees. Transaction fees.

No one likes paying credit card fees, but some are more painful than others.Some fees are actually worth paying, and some aren’t worth worrying about. Before you decide not to apply for that high annual fee credit card, or turn down a balance transfer offer that has a fee, find out if it might be worth the fee. Here are three common credit card fees that aren’t worth worrying over— plus the one fee you should never pay.

  1. Annual fee – Sure, there are plenty of no annual fee credit cards around. So why pay $35 or more per year for the privilege of carrying a specific card? Easy. Those high annual fee credit cards generally come with amazing perks. Want to rack up frequent flyer miles, stay at hotels for free, or get 6% cash back on groceries year-round? Credit cards with annual fees will let you do that. Concierge service, travel insurance, high credit limits, and great rewards await those who are willing to pay this fee.
  2. Balance transfer fee – If you’re carrying a large balance at a high interest rate, don’t be afraid to do a balance transfer just because there’s a fee. It used to be that there were plenty of no-fee balance transfer offers around, but this isn’t the case anymore. Most transfers will cost about 3% of the amount transferred. However, if you’re currently paying a 19% APR on your debt and you have the opportunity to pay 0% for a year or more, paying that fee is well worth it. Do the math and see how much you’ll save. This is a fee worth paying.
  3. Swipe fee—officially called “interchange fees,” the so-called swipe fees have gotten a bad rap over the last few years. Why? Merchants sued MasterCard and Visa, claiming that they were unfairly gouging them with high interchange fees. The lawsuit dragged on for nearly ten years, and some retailers are still fighting the settlement offer.

Merchant groups have tried to get the public worried about this issue, saying that stores will pass on the fees to consumers. As a result, you may have heard that using your credit card will result in a fee. In truth, most merchants are not passing this fee on to shoppers. The interchange fee is usually between 2 and 3%, and is a transaction fee charged to the merchant or salesperson running your credit card.

If you’re worried about this fee, ask the retailer if there is a discount for using cash. Small businesses or solo entrepreneurs may give a discount, to avoid the swipe fee on their end. However, most big stores aren’t charging you for the interchange fee—so you don’t need to worry about it.

  1. Late fee—This is one of the most annoying fees to have to pay. The good news? You might never have to pay it again. Many credit cards now do not charge a late fee, at least for the first late payment.

If your credit card does charge a late fee, there are two other ways to avoid paying it. The first one, of course, is to always pay your bill on time. Set up automatic withdrawals and reminder texts or emails to ensure your minimum payment reaches your issuer by the due date each month.

In case you do get behind, just call your credit card issuer. Most of them are happy to cancel a late fee if you have a good track record of payment. Picking up the phone or sending an email—even chatting with an account manager from the online account center—can save you that $35 fee.


All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Credit Card Fees Guides

How To Get a Credit Card Limit Increase? January 27th, 2023

What is a credit limit? A credit limit is the total amount you are allowed to charge to your credit card. This includes not only approved credit card purchases, but also the entire balance owed, as well as balance transfers, interest charges, and fees such as annual fees and late fees. With most credit cards, […]

Continue »
What Fees Your Credit Card Conceals May 28th, 2020

Credit cards may be fraught with a dozen of different fees. Certainly, you may know what annual fee is, but if you are not used to thoroughly read card agreements, you probably have never paid attention to some other kinds of fees. Still, it is very important to be well-informed about all the fees that […]

Continue »
Guide to Credit Card Minimum Payments March 9th, 2020

After you make purchases with your credit card, there always comes a time when you have to foot the bill. A monthly credit card statement usually contains a lot of numbers that taken together make up your payments. Of course, you’d better understand and monitor them all, but there is one number that just calls for attention – the minimum credit card payment.

Continue »
What Is an Annual Fee and How to Avoid It? February 12th, 2020

The annual fee is a fee that you pay once a year just for using a credit card. Not all credit cards have an annual fee. As a rule, this fee is charged on travel credit cards, premium credit cards, and credit cards for bad or limited credit history.

Continue »
Can You Avoid a Credit Card Late Payment Fee? January 15th, 2020

A late payment fee is a fee charged by the credit issuer when cardholders fail to pay on time. It applies to both situations: when you didn’t manage to pay before the due date at all and when you did pay but less than the required minimum.

Continue »
Best Credit Offer
Best Credit Cards from Credit-Land.com
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 5 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 BestCreditOffers.com All Rights Reserved.

*See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by BestCreditOffers.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.