BANKING AFFAIRS

Detailed explanation-1: -An annual fee is a lump sum you have to pay every year that you’re signed up for certain credit cards. Often these fees, which can range from $95 to $500 or more, are offset by perks, such as airline miles, points, or cash back opportunities. Some cards also waive their annual fee for the first year.

Detailed explanation-2: -Credit card companies make money on the fees they charge customers, including the annual fee, interest charges that rack up when you don’t pay your bill in full each month and interchange fees that businesses pay every time you swipe your card.

Detailed explanation-3: -If you have a card with an annual fee, it likely appears on your monthly statement once a year. Typically, the fee shows up on your first statement after you open the account and then every 12 months after that. There are also some issuers that divide the annual fee into monthly payments.

Detailed explanation-4: -An annual (yearly) fee charged by a credit card company each year for use of a credit card. This is a separate fee from interest rate on purchases.

Detailed explanation-5: -Annual fee is a one-time charge and renewal fee is charged every year. These fees may vary from Cardholder to Cardholder, and for different card variants. These shall be as communicated to the Cardholder at the time of applying for the credit card.