There have been some credit card fee changes recently and consumers will benefit from knowing the details of these changes.

Previously, all credit card issuers had very high fees for exceptional events such as spending more than their allocated credit limit, paying late, etc. Of course, the fees for these things are still quite high, but the amount charged has been reduced by most of the banks.

In early 2009, the Reserve Bank of Australia announced that consumers had paid $415 million in credit card exception fees in 2008. Since that announcement, a number of banks have made progress towards reducing the fees charged.

NAB was the first to initiate a string of announcements regarding credit card fee changes. In late July of 2009, NAB announced that they would be abolishing overdrawn fees on transaction accounts. Following this announcement, the major banks issued similar statements regarding credit card fee changes. Their announcements included reductions to credit card over-limit charges and late payment fees. After such announcements, NAB announced extended cuts to credit card fees and further reductions on transaction account monthly fees.

All of the major banks have reduced their exception fees in some way. Some have abolished the fees entirely; some have reduced them while others have provided options of avoiding the fees.

Credit card fee changes

The actual credit card fee changes vary from bank to bank:

  • ANZ Bank originally charged $35 in credit card exception fees. They have reduced this to $20. The fee change has been effective from 15th December 2009.
  • Commonwealth Bank originally charged $25 in exception fees. They have now introduced an option for consumers to block transactions over the credit limit, which will allow them to avoid having to pay this fee entirely. The new rule has been in effect from October 2009.
  • NAB originally charged $25 – $35 in exception fees. They were the first to announce reductions to the fees. They have abolished over limit fees and have reduced late fees to only $5. The changes have been in effect since December 4, 2009.
  • Westpac originally charged $35 in exception fees. They have now reduced the fees to only $9. The new fees have been in effect from October 1, 2009.

As you can see, all the major banks have reduced their fees somewhat, or introduced alternatives which will allow cardholders to avoid having to pay fees. It is useful to keep an eye out for credit card fee changes. These recent fee changes have benefited cardholders.