This hidden credit card fee affects millions of Americans monthly—are you one of them?
If You Have These Credit Cards, Be Prepared to Pay an Extra Fee
Published on Nov. 08, 2024
Few things are as frustrating as getting dinged with random fees. After all, you work hard for your money, and those hidden charges can really add up. While many credit card fees are avoidable if you know what to look for, there’s a surprising charge affecting millions of customers every month.
Are you getting hit with added fees? Read on to find out which credit card companies are secretly charging you, why these extra fees may end up on your monthly statements and how to avoid them.
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What new fee might you see on your credit card statement?
In an effort to get customers to switch over to paperless banking, credit card companies are now charging $1.99 per month if you want to continue to receive paper credit card statements. That adds up to $24 per year.
The reason for this fee? Naturally, it has to do with the credit card companies’ bottom lines. Physical statements collectively cost financial institutions nearly $600 million a year. By going paperless, they can save a boatload of money.
While credit card companies are just now rolling out these fees, the concept isn’t new. Banks have been charging fees for paper statements for years, with some billing customers as much as $5 per month to receive a statement in the mail.
Which credit cards are affected?
You’ll have to pay for paper statements if you use a credit card from Citibank or Synchrony Bank. The latter offers hundreds of store-affiliated credit cards, which means cards associated with major retailers (like Walgreens, Sam’s Club, American Eagle, Lowe’s and JCPenney) are also affected.
In a statement to Pittsburgh’s WPXI-TV, Synchrony Bank explained the new fee, in part, by saying, “Due to changes in regulatory conditions, and to ensure … a full range of benefits, tools and rewards, we are making updates to some of our account terms across select credit card programs.”
Citibank released its guidance to customers by saying that going paperless was “now required to access your account on Citi.com and the Citi Mobile App.”
As of now, there’s no federal law that bans companies from charging these paper-statement fees. However, these companies must get permission from their customers to switch from paper to electronic statements.
What are critics saying?
There has been a great deal of criticism about this new credit card fee, mainly because some demographics rely on getting paper statements in the mail. Older people, for instance, may not be tech-savvy enough to do their banking online after using the paper method for their entire lives. And people in lower income brackets may not have easy access to a computer and a fast internet connection.
Even though Citibank allows customers to view, print and save current statements, as well as request past statements, at no additional cost, doing these things still requires customers to use an online banking platform.
For those who are blind or have accessibility challenges when using websites, going paperless presents issues as well. Citibank has made concessions for these customers, noting that people who currently receive braille or large-print paper statements will continue to do so. (People who are past due on their payments or are over their credit limit will also get paper statements.) Synchrony asks people who have disabilities or experience an accessibility issue with its digital platforms to contact customer service.
Another issue with charging fees for paper statements is that some people simply do not want to opt in to online banking. It makes people more susceptible to hackers and data breaches, and doing your bills on the internet puts personal information out into the world that would otherwise remain hidden.
How can you tell if your credit card is charging these fees?
The best way to check for a paper-statement fee is to call the customer service number on the back of your card and ask the representative if you will be charged. Depending on your credit card company, you might become automatically enrolled in e-statements or paper statements, so it’s always smart to be sure.
What other hidden credit card fees should you be aware of?
Of course, this new credit card fee isn’t the only one you need to be aware of—there are a number of hidden charges that come with most credit cards on the market. The best place to find these fees is in what’s called the Schumer box: This easy-to-read table is where you’ll find your credit card’s terms and conditions. Credit card issuers are legally required to provide this table for every card.
If you don’t have the paperwork that came with your card and you can’t find it online, you can call customer service and ask them to mail or email you all of the fee information for your card.
But to give a quick overview, here are some of the more common hidden credit card fees to keep on your radar:
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Finance charge: This fee is based on your credit card’s annual percentage rate, also known as APR. You can avoid this by paying your credit card balance in full each month.
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Cash-advance fee: You’ll likely pay this fee when you use your credit card to get cash at an ATM or use the convenience checks you received when you opened your card. To avoid it, don’t use your credit card at an ATM and recycle those checks.
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Card-replacement fee: If your card is lost or stolen, your credit card issuer may charge you a fee to get a replacement. To avoid this, simply ask the customer service agent you speak with to close your account. Chances are, they will waive this fee to keep you as a customer.
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Balance-transfer fee: If you need to transfer balances between accounts, you’ll usually have to pay a balance-transfer fee, which is typically a percentage of the amount you transfer. If you think your card doesn’t have a balance-transfer fee, check the fine print to see if this remains over the lifetime of your card or if it is just for an introductory period. The best way to avoid this fee is to find a credit card issuer that doesn’t charge a fee for balance transfers, which are usually offered through credit unions.
Which cards come with the fewest fees?
Credit card fees can be annoying, but they can also be avoided in some cases if you do your research and select the right card. If you’re looking for a credit card with fewer fees, a few popular ones are Capital One’s VentureOne Rewards credit card and Bank of America’s Travel Rewards card, which both offer no annual fee or foreign-transaction fees. Chase’s Freedom Unlimited, which offers 0% APR on purchases and balance transfers for 15 months, is another good option.
Remember that if you notice a strange charge on your card, it’s always worth calling your credit card company and speaking with a representative to better understand the fee—and perhaps even have it waived.
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Sources:
- Javelin: “Banking customers are ready for a fresh push to go, an estimated 594 million annually”
- WPXI-TV: “Some credit card companies are now charging fees for paper statements”
- The Week: “Citibank to cut off online access for customers who don’t go paperless”
- USA Today: “Go digital or else: Citibank tells customers to ditch paper statements or lose digital access”
- Citi: “Terms and Conditions”
- Synchrony: “Accessibility Statement”
- Business Insider: “Paper Bank Statement Fees: What You Need to Know”
