ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The act of transferring money
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A yearly fee charged by a card issuer for being a card holder.
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The days between the last statement and the current statement.
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A fee charged to a cardholder’s account once a payment is late.
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Detailed explanation-1: -The annual fee is also known as credit card fees or annual maintenance charges, paid annually by the credit cardholder to keep using the credit card. Credit card issuers charge an annual fee because they offer various extra benefits to credit cardholders.
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: -Why Do Some Credit Cards Have Annual Fees? Some credit cards have annual fees because they offer extra benefits. These may include things like cash back, miles rewards or free checked luggage on flights. Cards for people who are building or rebuilding their credit may also charge annual fees.
Detailed explanation-4: -Credit card processing fees The average credit card processing fee per transaction is 1.3% to 3.5%. The fees a company charges will depend on which payment company you choose (American Express, Discover, Mastercard, or Visa), the merchant category code (MCC) and the type of credit card. Did You Know?