ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Commonly referred to as an ‘annual fee’, this is not a hidden charge. The annual fee is charged once a year and varies depending on the card. Banks will sometimes offer free credit cards, which means there will be no joining or annual fees on the card for a set period of time or lifetime.

Detailed explanation-2: -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.

Detailed explanation-3: -Interchange Fees Every time a customer uses a credit card in your store, there’s a fee that is paid from the the acquiring bank (merchant account) to the issuing bank (customer account). It’s called an interchange fee. (There is an exception to this, see below.)

Detailed explanation-4: -An annual (yearly) fee charged by a credit card company each year for use of a credit card.

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.