Credit card providers making a killing

Small adjustments to charging and fees over the past years have added up to credit card providers making a mint on their customers.

According to uswitch.com, the credit card companies will make a staggering £459 million this year on balance transfer fees alone.

It explains that the “stealth charges” racking up the money also include cash withdrawal fees, zero per cent deals and negative payments hierarchy among other things.

“It’s no great surprise that every zero per cent balance transfer credit card now levies a charge. Historically, fee free deals fuelled the switching market and marked the birth of the rate tart, quickly turning into a huge financial drain on the industry, to the tune of around £600 million,” said Mike Naylor, personal finance expert at the website.

Furthermore, the company found that £71 million is made by providers from people withdrawing money on their credit cards.

Tags: cent, fee, birth, credit card companies, people withdrawing money, finance