New data by examining the spending habits of nearly 60 000 Australian card users of all of the 4.1 million transactions has been compiled Pocket book, a ZipMoney company, and has found many people are stung hard by fees.
It showed the annual cost to have to bite the buyers the worst ($87 per year), followed by the international transaction fee, late payment fee ($38) and cash advance fees ($35).
Australians are wasting money on unnecessary credit card fees.Source:istock
And in terms of total fee revenue financial institutions make the most money from shots of consumers with international transaction fees (38% of total fee revenue), followed by the annual fees (34%), cash advance fees (9%) and late payment fees (8%).
ZipMoney chief growth officer Andy Mitchell international, the transaction costs have the most exorbitant costs, and consumers had a need to pay attention to these or risk paying too much.
International credit card fees are among the worst to hit the consumers.Source:istock
â€œInternational transaction costs are incurred in one of two situations, either the Australian consumers to stay at home, and the purchase of goods from foreign countries and / or consumers are traveling abroad and using the card while in there,â€™ he said.
â€œAccordingly, they are to engage in the foreign currency conversion fees … and a few other devices costs they are incurring on the part of banks.â€
Mr. Mitchell urged consumers to monitor their statements and to check what are the fees to be paid and to take action if they are paying too much.
â€œBy shopping around you can find a way to reduce the amount of taxes that fit in your behavior, ” he said.
There is no denying that the Australians are addicted to their credit cards â€” the most recent Reserve Bank data shows cardholders must massive $ 52.3 billion on plastic and more than $ 32.3 billion is accruing interest.
Consumer finance expert, Heidi Armstrong said, it is vital that customers use their plastic card to good use and take into account the costs that they are paying for the privilege of paying with credit.
Consumer finance expert, Heidi Armstrong said fees can spiral out of control if you don’t pay attention.Source:News Corp Australia
â€œThe fees can spiral out of control, but also to the interest,â€™ she said.
â€œBefore you open your statement to try and guess what you pay in fees, and then compare that to the statement itself and the number of persons that may receive an electric shock.â€
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