Credit Card Providers Companies are Cutting Consumer Fees on Credit Cards Usage

Wednesday, December 7th, 2011
Updated: December 7th, 2011
The content is accurate at the time of publication and is subject to change.

Banks have come up with a surprising move; they are cutting fees on credit card usage. There has been a lot of discussion about greed and shifting cash from the big banks recently, particularly with disliked fees on debit card and the increasing savings account fees.

Wall Street Journal reports that the big fee on foreign-transactions has come under the chopping axe recently. Typically when a credit card is used overseas, a fee is paid to compensate the expenditure of using two different transaction networks. This is generally to the amount of 2 and 3%, in particular with Europe as it has dissimilar security protocols. This is becoming a thing of the past and users will find that some providers like Citigroup and Chase have completely eliminated this fee.

It also seems that the banks will be doing away with balance transfer fees. Some banks are already starting to act on this with clients who come under certain criteria including shifting balances in the initial thirty days of registering for a new card with the bank. This has been only implemented by Chase till now but some more banks are also working on this.

Another surprising action of the banks is the increase of rewards programs, in some sectors at least. It is true that rewards programs are being eliminated for certain clients, but new and unexpected ones are also being added. To give an example, some providers such as Capital One offer reward incentives when a consumer exchanges balances. This is also seen in airline cards, who are offering key airline miles when consumers spend a particular amount on their credit cards.

What is the reason for fees being cut and what is exactly happening here? What is the reason for the banks to offer such incredible incentives to their patrons?  Are they surrendering to demands of the consumer and cutting their profit margins? No, the reason behind this move is twofold, banks are trying to attract particular type of patrons and they also want individuals to make use of credit cards in place of debit cards.

Federal legislation has limited debit card fees recently and they can’t make money on debit cards. Credit cards as the best tool for banks to maintain profits and there is no limit on swipe fees for credit cards. Credit cards let consumers accumulate a balance on which interest is charged by the bank. To collect swipe fees, customers have to keep using the credit cards and banks are offering incentive for the same to the right clients.

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 News

Thursday, June 6th, 2019

Recently Discover shared results of their new online survey. The survey was conducted from February 12 to 17 by research company Dynata on behalf of Discover Financial Services.

Thursday, March 21st, 2019

There are four major credit card networks: Visa, Mastercard, Discover and American Express. These 4 networks differ basically in two things: how and where the person owning the card can use it and the benefits the network offers.

Wednesday, November 21st, 2018

More and more people are figuring out that the best way to avoid credit card fees and unnecessary bank charges is to use a prepaid card—otherwise known as a general-purpose reloadable prepaid card. These cards are increasingly popular among all demographics, including Millennials, small business owners, and people who are self-employed.

Tuesday, June 5th, 2018

Good news for entrepreneurs and small business owners: there’s a new rewards credit card that gives unlimited cash back and has no annual fee.

Saturday, November 25th, 2017

Most elite travel rewards credit cards charge steep annual fees. But a new luxury credit card from HSBC is offering cardholders free membership, in addition to a number of other valuable perks. The HSBC Premier World Elite Mastercard credit card comes with travel perks including rewards on airfare and hotel spending, as well as rewards on train fare and ride-sharing costs with Uber and Lyft.

Best Credit Offer
HSBC Gold Mastercard® credit card
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 Horizon Gold Credit Card
Copyright © 2001-2019 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 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 webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. 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 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. 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 may be compensated by the credit card issuers when the readers apply for a credit card through this site. 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. does not review or list all available financial or credit offers.

Disclosure: Not an access card.

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.