Some credit card costs may include basic, usage, penalty and business processing fees, according to CardHub. Many of these fees vary by the card or provider, but they can quickly add up, and while some are worth their value, many can be avoided or reduced.
Basic fees include annual or monthly membership fees that cover the costs of processing or rewards programs, reports CardHub. Other basic fees may include one-time fees for account setup charged when the customer is approved for a credit card. Providers often charge usage fees for particular transactions, such as foreign purchases, cash advances and balance transfers. Providers do not display such fees as prominently as they may advertise the benefits of using the service, such as with balance transfers. This service incurs a fee of about 3 percent of the balance, which may be set off by the lower interest rate paid over the grace period for the debt.
Providers financially penalize clients for any missed or late payments or exceeding their credit limits, explains CardHub. They also charge a fee for any returned payments. Avoiding such fees is one of the simplest ways to keep down credit card costs. When accepting credit cards for payments, businesses pay a separate type of processing fee, commonly about 1 percent of the purchase value.