Credit cards are popular for a variety of reasons and the most important ones are the rewards and cashback offers they provide. However, as valuable as they are for building up reward points, if you do not pay your bills on time, you may find yourself in a financial trap. And, credit card transactions on AU Zenith credit card are not a trivial matter that can be overlooked.
Do you know your card issuer does not only charge you an annual fee but other charges as well? As a result, it’s critical to know what other charges they charge before you select the credit card. After all, these charges will be charged to your AU Zenith credit card and appear on your monthly bill hence, it is imperative to know the same.
Joining and annual fees: A joining fee is a one-time charge made by a bank when issuing a credit card for the first time. The annual fee is a yearly cost that is charged beginning with the second year. However, various banks may employ different jargon. The annual cost could be between zero and 10,000. You can know about the annual fees charged on AU Zenith credit card by contacting customer care support.
Many banks, on the other hand, do not charge a membership fee for some of their credit cards. When it comes to yearly fees (paid beginning with the second year), many banks either do not charge them or waive them for particular credit cards such as AU bank credit card if your spending exceeds a certain threshold. ICICI Bank, for example, does not charge an annual fee for its Platinum Chip credit card. The annual charge for the bank’s Coral credit card is Rs 500 plus GST, but it is waived if you spend more than Rs 1.5 lakh in the preceding year. If you spent Rs 3 lakh or more in the previous year, Axis Bank will waive the yearly fee of Rs 3,000 on your Signature Credit card.
Cash Advance fee: This fee is charged when you use your AU Zenith credit card to withdraw cash from any ATM in India or overseas. Aside from that, cash advances have a financing fee (the same as your existing credit card amount) that is applied from the date of withdrawal until the date of final payment. For example, a particular bank may charge 2.5 percent of the amount withdrawn.
Finance charges: This is the most crucial charge a credit card customer should be aware of. If you do not pay your AU bank credit card bill in full by the due date, the charge is computed at a monthly interest rate. The metre on cash advances starts ticking from the day of withdrawal until you pay it back. It is important to understand that simply paying the minimum amount due (MAD) before the monthly due date does not relieve you of the burden of finance charges. These fees will continue to accrue until you pay down the balance on your AU bank credit card in full. If you pay off the MAD on the due date, you will avoid late payment penalties.
Furthermore, because the monthly interest rate is often very high if you continue to carry forward your previous AU bank credit card payment amount, the finance costs can quickly build up. Finance costs on various banks and AU bank credit card can range from 2.49 percent to 3.8 percent per month (30 percent to 45.6 percent annually), including GST.
Cash payment Fee: Paying your credit card dues on AU Zenith credit card at a bank branch rather than online can be costly for people who believe in offline banking. For this, a bank may charge you a flat cost of Rs 50 to Rs 250 plus taxes.
Late payment penalties: This fee is imposed if you do not pay the MAD by the monthly due date. This is usually charged as a flat cost based on the slab into which the unpaid amount falls. In the case of SBI credit cards, for example, the late payment ranges from zero to Rs 1,300 based on the outstanding balance (which might range from less than Rs 500 to more than Rs 50,000).
Fee for exceeding the limit: If your outstanding credit card balance exceeds your credit limit, you will be charged this fee. This cost is also payable when the credit limit is exceeded owing to any fees or charges, not only a purchase. Some of the biggest banks levy an overlimit fee of 2.5 percent of the overlimit amount, with a minimum of Rs 500 or Rs 600. However, you need not be concerned about mistakenly exceeding your credit card limit and getting charged this cost.
Foreign exchange transaction or mark-up fee: When you use your credit card for an international transaction, you will be charged this fee. It is applied to the converted Rupee value shared with the bank by card payment networks like as Visa and Mastercard. This cost varies greatly between banks and credit cards.
What to do if you are the victim of Fraudulent Credit Card Transactions in India?
A fraudulent card transaction is an unauthorized purchase made with your credit card. The criminal either steals your credit card physically or steals your card information through phishing or credit card skimming and uses it to make payments or withdraw cash.
How to Inform the Reserve Bank of India about Fraudulent Credit Card Transactions
To report a fraudulent transaction made with your credit card, phone the RBI at 14440 and leave a message.
Aside from these requirements, the RBI has a defined framework in place for refunding such fraudulent acts. Here are the specifics:
Within 3 days: According to India’s apex bank, if you disclose any occurrence of a fraudulent transaction within 3 days of the incident, you would face no obligation for it. As a result, the entire sum will be refunded to your bank account.
Within 4 to 7 days: If you file your complaint after 3 days and within 7 days of the illegal transaction, you would be liable for INR 5,000 to INR 25,000, whichever is less. The remainder will be reimbursed to you after the lowest amount has been deducted.
After 7 days: If you do not disclose such unauthorized transactions within 7 days, the bank will not be obligated to return you any money.
So we are saying,
While credit cards are a terrific method to earn reward points and get instant credit to help manage one’s financial flow, it is critical to maintain track of your credit card account and pay it on time.