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Charges tariff: levied by UK credit card providers?

Last Edit: 17/10/18

The following charges tariff are commonly levied by providers of credit cards in the United Kingdom. The charges tariff levied by a credit card provider can be found in the credit agreement a customer signed when applying for their credit card. Credit card providers regularly attach an updated version of their credit agreement with monthly statements posted to their customers.

A selection of credit cards provided by payment systems visa and mastercard
(Credit agreements: will list the credit tariffs applied by your card provider)

Default Charges

- If an account is over the agreed credit limit by a specific amount (for RBS credit cards this is commonly £12 over the credit limit).
- If the minimum payment is not paid by the agreed upon monthly date (a direct debit can be put in place to automatically pay the minimum payment).

The amount a credit card companies will charge for either of the two (above) default charges varies, but is typically in the range of £10-£30.

Other Charges

- To post a duplicate monthly statement, or to send a historical monthly statement (can cost in the region of £2-£5 -- but can usually be viewed for free online).
- If you agree to an fixed monthly installment plan -- to pay for larger purchases -- there is commonly a fee for setting up the installment plan or using it each month.
- An annual fee for owning a credit card -- this is often the most expensive charge tariff, and is usually in the range of £25-£35.
- For cash advances -- withdrawing cash via an ATM or over a counter -- there is usually a charge that is a % of the cash advance: such as 2% of the cash advance.
- If a transaction is conducted in a foreign currency (not pounds sterling) then a non-sterling transaction fee is applied -- usually around 2%-3% of the transaction amount.
- If a cheque written by the customer to the credit card company bounces (not paid), then a standard fee is charged by the card provider.
- If a direct debit payment sent by the customer to the credit card company bounces (not paid), then a standard fee is charged by the card provider.

It should be noted that not all the charge tariffs listed above are applied by every credit card provider, some card providers will remove certain fees, like their annual fee, but the vast majority of credit card providers will levy most of the above charges. For example, some credit cards that do not levy an annual fee are: M&S Bank Transfer Plus Mastercard; ASDA Money Cashback Credit Card Mastercard; Barclaycard Low Rate Platinum Credit Card; MBNA Low Rate Credit Card; Sainsbury's Bank 30 month Balance Transfer Credit Card; opus Classic 34.9; and the Bank of Scotland Classic Credit Card.

Another charge tariff that is commonly removed by credit card providers is the foreign transaction fee. The following cards have no foreign transaction fee: 118 118 Money Credit Card; Aqua Advance Card; Tandem Bank Cashback Credit Card; Santander Zero Credit Card; Barclaycard Platinum Travel; Coutts Silk Card; Nationwide Select Credit Card (Just For Nationwide Members); B Credit Card; Creation Everyday Card; Halifax Clarity Credit Card; and the NatWest Reward Black Credit Card.

It should be taken into consideration that by removing one of the charge tariffs listed above -- such as the foreign transaction fee -- the card provider will often increase a fee/charge someplace else; such as increasing the representative APR. However, if a consumer owns a range of cards -- that can be used in different circumstances, such as traveling aboard -- the consumer can cut out some of the charge tariffs applied by card providers.