Some Credit Cards Issuers Are In The Process Of Testing Out New Consumer Fees

Tuesday, January 31st, 2012
Updated: January 31st, 2012
The content is accurate at the time of publication and is subject to change.

Because of the CARD Act, credit card issuers are not making as much money as they are used to. As a result, many lenders are toying with the notion of charging cardholders for services that have previously been free.

Many analysts claim that ever since the Credit Card Accountability, Responsibility and Disclosure Act went into effect last year, credit card issuers have been quietly attempting to figure out ways to recoup some of the revenue that has been lost as a result of the new regulations. Some credit card companies have even taken to testing out a variety of new fees.

In 2011, 90% of all fees levied upon cardholders were attributed to payment lateness, a statistic provided by the credit card consulting firm RK Hammer and reported by the online news source Collections & Credit Risk. That is an increase from 2010’s 80%, which was before the CARD act prohibited lenders from slapping certain other fees on cardholders, including penalties for making charges over preset credit line limits.

Overall, the percentage of income generated for the credit card industry from fees dropped some 13.8% last year to $19.4 billion as compared to the $22.5 billion it earned by way of fees in 2010, as indicated by data released by RK Hammer, according to Collections & Credit Risk.

“We know of no card issuer not weighing its fee-pricing options or implementing new fees,” said Robert Hammer, the firm’s chairman and CEO.

Currently, several card issuers are searching for ways to implement new fees that will be allowable under the CARD act, and many are in the process of testing them out. If adopted, these fees will affect a variety of different services that were heretofore offered to cardholders at no cost. Some of the fees being considered are charges for replacing lost or stolen cards or adding a second card onto an account, charges for calls placed to customer service agents, charges for receiving paper statements in the mail and additional charges for cash advances taken against the account.

Although many experts have voiced concerns that issuers may begin increasing annual fees on a multitude of cards in their efforts to make up some of the lost income, one study which was conducted by the Pew Safe Credit Cards Project found no immediate cause for alarm, as when annual fees in January 2011 were compared to those from March 2010 there were no major changes.

Also, it should be kept in mind that because banks collect more interchange money from credit card transactions than debit card transactions, which means that ultimately issuers want to encourage more consumers to spend with their credit cards instead of discouraging them with too many extraneous fees.

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 Issuers News

Monday, March 4th, 2024

The news that Capital One Financial has struck a deal to buy Discover Financial Services shook up the credit card market, paving the way for Capital One to become the largest nation’s credit card issuer in the country. Capital One, a stalwart in the financial sector and the ninth-largest bank in the U.S., plans to […]

Wednesday, March 29th, 2023

Citi has officially launched its new travel platform with the assistance of, which Citi cardholders can use for earning and redeeming Citi ThankYou points. Citi Travel with will replace the existing City Thank You Travel Center and will offer access to over 1.4 million hotel and resort options, as well as competitive pricing […]

Wednesday, September 14th, 2022

An alliance between American Express and i2c is now focused on offering payment products in the American Express network through fintech companies. Amex announced its collaboration with payment and banking technology company i2c in April this year. The two partnered to create a platform that allows fintechs and financial institutions to launch cards more quickly […]

Wednesday, June 2nd, 2021

Continuing to live in the present reality and the ongoing COVID-19 pandemic, global giants of the financial and credit sector introduce new bonuses for the convenience of their customers. Mastercard, in turn, has announced new partnerships with DoorDash and HelloFresh offering new food and grocery delivery perks to Mastercard World and World Elite cardholders. According […]

Thursday, January 21st, 2021

Walgreens has recently announced its plans to enter the consumer financial services market. To be precise, the second-largest pharmacy store chain in the United States is going to start issuing credit cards and prepaid debit cards under its brand. The main reason for this expansion of the scope of activity is the losses incurred by […]

Best Credit Offer
Surge® Platinum Mastercard®
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 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.

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.