Hey!
Is your credit card has service charges that you are not able to understand? Or you want to know what types of charges a bank bill to you if you make any transaction using your credit card! Well, we are here to inform you about the types of service charges that you need to know before you use your credit card.
Surely, you should know about the service charges & fees applied when you use your credit card. In that way, you would be able to use your card well and also be aware of all service charges you see in your credit card statement.
Well, here is a simple & easy detail of these types of transactions & their respective service charges.
| S# | Transaction Type | Details |
| 1. | Annual Fee | These are fixed charges and once applied a year in your card. These are normally reimbursed my most banks if you use your credit card for transaction up to a certain amount as mentioned by the bank. |
| 2. | Cash Advance Issuance Fee | These charges are applied when you draw cash from your credit card along with APR for Cash Transactions. I would advise against using your credit card for cash withdrawal, until its very crucial. To know which banks charge less cash advance fee & APR for Cash, CLICK HERE |
| 3. | Annual Percentage Rate (APR) | These are the mark up rates that are applied on number of days between your transaction date & complete amount payment date. These rates vary according to the type of transaction. They are normally applied as per kind of four transaction categories which are as follows: APR for Cash Transactions APR for Retail Transactions APR for Balance Transfer Facility APR for Installment Plans To know further about APR Transactions, CLICK HERE |
| 4. | Foreign Transaction Charges | These charges are applied when you use your credit card either outside Pakistan or make any payment in any currency other than PKR. If the currency of these transaction is any other than USD, the currency is first converted to USD and then charges are applied according to exchange rate. Some banks also charge a conversion Fee. FED is also applied on these transactions. To know more about charges applied on Foreign Transactions, Banks CLICK HERE |
| 5. | Credit Limit Exceeding Charges | These charges are applied when you use your credit card for transactions exceed in your credit limit. That is, if your limit is Rs. 100,000 and you make transactions of more than Rs 100,000 in one cycle/month then these charges are applied. Along with a fixed fee, APR is also applied on the exceeding amount until paid in full. |
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