Earlier today, I was quite surprised to find the item below while viewing my credit card statement using the internet banking service of The State Bank:
So, I was charged a fee because I exceeded the limit on my credit card. It sounds a bit dumb because that’s why there’s a limit fixed. Anyways, on the good side, it allows you to carry out the transaction even if the amount exceeds the limit by a small amount. In my case, I think that I was charged Rs150 for an excess of Rs300 used.
Note : As a customer of the SBM, everything here was written according to information obtained for SBM customers. These might be different for other banks, so please be careful.
Looking for more details
To be sure about this “overlimit fee”, I had a look at their web site. It was there, clearly mentioned in the contract which I have probably signed:
The sections mentioned above are quite clear but nevertheless, I will talk about the 2 last ones :
- 18.7 Payment in foreign currency
I’m sure that some online shopaholics might not be aware that there’s a “fee” charged for each of their transactions carried out on the internet. How it is calculated? For example, if the exchange rate of $1 is at Rs32, the effective exchange rate used might be Rs33 because of the additional charge applied. Yeah, it is unfair!
- 18.8 Increase limit
I used this service a few times during the past years. Let’s say that your credit card has a limit of Rs10, 000 but you need to purchase a mobile phone which costs Rs15, 000. To be able to carry out this transaction using the same credit card, you can write a letter to your bank asking for a temporary increase in the limit of the card during a specific period of time. You will be charged Rs100 or Rs150 for this service and you can complete the transaction without any problem and also, no need to find someone else to do the purchase.
Other credit card charges
Additionally, for those who did not know, you can withdraw cash using a credit card but a fee will be applicable. I learnt this one too a bit late, after I withdrew cash from an ATM while I could have used my normal debit card *-*
What about debit cards?
Some time back, I was amused when one of my friends told me about his experience when he used the ATM from another bank to withdraw his money (For example, using a SBM credit card on a MCB ATM). He was charged Rs75 for the transaction. Sounds fair but he used the ATM for withdrawing only a very small amount Rs100 or Rs200 to get him out of an embarassing situation. lol.
I hope that this post can be informative and useful to some of you while using your credit and debit cards. Any additional information you might know is the most welcomed.
Thanks for keeping tuned to the blog,