Credit Cards Try A New Approach - Cutting Fees
It's never a surprise when a company introduces higher fees to their clients. On the other hand, it's often a surprise when companies give consumers a break and introduce lower fees.
According to CreditCards.com, some credit card providers "have done the remarkable" and eliminated fees. Granted, the trend is small, but it is nevertheless "unmistakable."
According to the all-things-credit-card-related website, the 100 most widely held general-purpose credit cards charge a total of 593 fees, marking a decrease from 613 a year ago.
For example, 19 credit cards no longer have a fee attached with requesting an old account statement.
The blog suggested that credit card issuers are "tweaking" their fee structure to strike a better balance of generating revenue and also satisfying cardholders. In fact, 85 of the top 100 credit cards made some sort of fee adjustment since 2016.
There is, however, only one credit card that offers zero fees, the Pentagon Federal Credit Union Promise Visa.
Capital One Financial Corp. (NYSE: COF) offers seven different credit cards that have just two fees attached.
"It's consumers who will drive the trends," CreditCards.com quoted Nessa Feddis, the American Bankers Association's senior vice president and deputy chief counsel for consumer protection and payments as saying. "If an issuer offers a service with a fee, but it's something consumers value, then you may see that fee stick around."
Tradeable Credit Card Names
- Barclays PLC (ADR) (NYSE: BCS)
- Capital One Financial Corp. (NYSE: COF)
- Credit One Financial Inc (OTC: COFI)
- Mastercard Inc (NYSE: MA)
- Visa Inc (NYSE: V)
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