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New to credit cards? Here’s all you need to know about credit card charges!
Being aware of all charges linked to your credit card helps you avoid paying more than necessary. This is especially in cases of late payments, cash withdrawals or international spending. Here are some points why it’s important to be well versed with credit card charges:
Even a single missed or delayed payment can trigger a late‑payment fee. For example, many Indian card issuers charge ₹300–₹1,000 as late fees depending on the outstanding amount.
If you withdraw cash using your credit card, you may incur a cash‑withdrawal fee and interest from the date of withdrawal. This is excluding the usual interest‑free period.
International purchases or transactions in foreign currency can come with foreign‑transaction charges, which may add 1%–3.5% extra to your bill.
Here are the different types of credit card charges you might have to pay while using a credit card:
Annual & Joining Fees : Not a hidden cost, this yearly charge varies depending on the card type. Some offer lifetime waivers, while others charge after an initial free credit period.
Interest Charges & Finance Costs: A hefty 2.5% charge applies on every cash withdrawal, with no grace period. Use your card for purchases instead of cash.
Late Payment & Over-Limit Charges: Exceeding your limit incurs a fee (often ₹500+) based on the overrun amount.
Annual Percentage Rate (APR): This interest rate kicks in on overdue payments. It can be high, generally, 30-40% p.a.
GST: Your credit card transactions are subject to 18% GST on fees and some charges.
Foreign Transaction & Currency Mark-up Fees: When using your card abroad, expect a transaction fee that usually ranges from 3 to 5% depending on your card.
Other Charges (Card Replacement, Surcharge, Balance Transfer): If your card gets lost or damaged, many banks impose a card‑replacement fee. Merchants may add a surcharge (often 1.5–3 % of the transaction) when you pay by credit card, especially for certain purchases. And if you shift an outstanding balance from one card to another using balance‑transfer, expect a fee of about 3–5 % of the transferred amount.
Here are some general fee‑benchmarks you can use as a reference while choosing or using a credit card in India (2025). Actual charges vary by bank/card type, as shown below:
| Type of Fee / Charge | Typical Benchmark / Range* |
|---|---|
Joining / First‑year Fee |
₹ 0 – ₹ 5,000 for many standard cards; may be higher for premium cards. |
Annual / Renewal Fee |
Often similar to joining fee — many cards charge ₹ 500–₹ 5,000 per year if waiver criteria not met. |
Late Payment Fee |
Typically from about ₹ 100 up to ₹ 1,300 depending on bill amount and issuer. |
Cash Advance / ATM Withdrawal Fee |
Usually 2.5%–3% of the amount withdrawn, with a minimum ₹ 300–₹ 500 per transaction. |
Over‑limit / Excess Credit Limit Fee |
Often a fixed amount (e.g. ₹ 500) or a small percentage of excess amount — though many cards simply block further transactions rather than allow over-limit charges. |
Foreign / International Transaction Fee |
Typically 1% – 3.5% or more of transaction value when swiping/using cards overseas or in foreign currency. |
Card Replacement / Re-issuance Fee |
If a card is lost or damaged, replacement fees may apply, often in the lower range (₹ 200–₹ 500), depending on issuer. |
Disclaimer: The fee ranges above are indicative and reflect general benchmarks for typical credit cards issued in India as of 2025. Actual charges may vary by bank, card type, issuer policies or changes in regulation. Always refer to the official terms and conditions of your credit‑card provider for exact fee and charge amounts.
Here are some practical tips to help you keep credit card costs under control and avoid unnecessary fees:
Always pay your full bill on time: Clearing the entire outstanding amount by the due date ensures you skip interest charges and late‑payment fees.
Avoid cash withdrawals on the card: Using your credit card for ATM cash advances attracts withdrawal fees and interest from the withdrawal date itself, with no grace period.
Enable auto‑pay or set payment reminders: Automatic payments or calendar alerts reduce the risk of missing your due date and incurring penalties.
Monitor your credit‑card statement and due dates carefully: Regularly checking statements helps you spot hidden or unusual charges, and tracking payment deadlines keeps your card usage cost‑efficient.
Use reward points or cashback smartly: Redeem rewards, cashback or travel points when applicable; these can offset annual fees or other charges, making your card use more worthwhile.
Even if you believe you know all the common fees on a credit card, there are several less obvious charges that banks or card issuers may levy. Here are some hidden costs you should watch out for:
Duplicate‑statement fee: If you ask for a printed or reissued copy of your monthly credit card statement, many banks charge a fee for it. The cost can range around ₹100–₹200 per statement.
SMS / Alert‑service charges: Some issuers may charge for SMS alerts or transaction notifications instead of e‑statements. This could result in small but avoidable recurring costs, especially if multiple alerts are generated.
Card‑replacement / Re‑issuance fee: If your card is lost, damaged or needs replacement, banks sometimes levy a fee for issuing a new one. This charge is often in the range of ₹250–₹300.
Merchant surcharge or special‑category surcharges: Some purchases (like fuel, railway tickets or certain merchant categories) may attract surcharges or extra percentage fees imposed by merchant/issuer policies.
Dynamic Currency Conversion (DCC) fees: When using your Indian credit card abroad (or on foreign websites), if you choose to pay in Indian Rupees (INR) instead of the local currency, the merchant might convert the amount at a poor exchange rate plus add a markup. This can result in a higher cost than paying in the local currency and letting your card issuer handle conversion.
Disclaimer: The information provided here is for general guidance only and may not reflect the actual fees charged by your credit card issuer. Fees and charges vary across banks, card variants and over time. Always refer to the official terms and conditions issued by your card provider before making any financial decisions.
The best way to avoid credit card charges is to pay your entire credit card due amount on time every month.
The credit card providers charge a processing fee. This fee depends on the service provider, the card network it is linked with, the credit card processing method, etc.
Using a credit card requires you to pay annual fees, GST, international transaction fees, ATM withdrawal fees, late fees, interest rates, etc.
Some banks offer zero annual fee credit cards for a lifetime or for a specific time. Most cards need you to pay a specific type of charge.
If you are worried about credit card hidden charges, you can rest assured that there is generally no cause for concern. All leading credit card issuers in India offer the details about the credit card charges they levy transparently. You just need to read the terms and conditions of your credit card thoroughly to be aware of all the charges.
No, there are no fees levied each time you use your credit card. However, there are annual credit card charges that your card issuer may levy. These fees may be waived if you spend above a specified limit in the previous year.
Yes, most credit cards come with nominal forex markup charges for international transactions. This can range from 1% to 3% or so of the transaction amount.
No, credit cards do not come with a monthly fee. Rather, they come with annual credit card charges that are levied each year to renew the credit card benefits. These fees may be waived on some cards depending on the amount spent in the previous year.
The minimum credit card charges vary from one card to another. There are also credit cards that charge no joining fee or annual fee either.
If you don’t pay your full outstanding balance by the due date, the unpaid amount attracts interest, which is typically about 2.5% to 4% per month. This corresponds to an APR of roughly 30%–48% per annum.
A cash‑advance via credit card usually incurs a fee of 2.5%–3% of the amount withdrawn, with a minimum charge of around ₹300–₹500 per transaction.
If you exceed your credit limit, many issuers levy an over‑limit fee, often ₹ 500 or more. Though actual fees depend on the card and bank.
Annual or renewal fees vary widely: some basic cards have no fee, while premium cards may charge several thousand rupees. The amount depends on the card type and issuer’s policy.
Yes, many banks charge a card replacement or re‑issuance fee when you request a replacement for a lost or damaged card. The amount depends on the issuer and card variant.
Yes, issuers may increase annual/renewal fees or other charges after the first year, or if you upgrade to a higher‑tier card. Always check the updated terms and conditions.
Some banks may levy inactivity fees, or periodically send re‑issuance or maintenance charges. However, such fees vary by issuer. Read your card’s terms to know for sure.
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