What fees are typically charged by credit card companies?
Matthew Harrington
Updated on February 19, 2026
8 common credit card fees and how to avoid them
- 8 common credit card fees. Annual fee.
- Annual fee. Many credit cards charge a fee every year just for having the card.
- Interest charges.
- Late payment fee.
- Foreign transaction fee.
- Balance transfer fee.
- Cash advance fee.
- Over-the-limit fee.
How much does a credit card company charge you in interest?
The average credit card interest rate is 18.04% for new offers and 14.61% for existing accounts, according to WalletHub’s Credit Card Landscape Report. Credit card interest rates tell you how much it will cost to borrow money from a credit card company, by carrying a balance from month to month.
What happens if you have a late fee on a credit card?
In this imperfect world, you can be penalized with two surcharges on one delinquency, and you won’t know about them until you’ve been charged. These can come in the form of a late fee (up to $35), and a penalty rate – a permanent interest increase that can jack up your APR to as high as 29.99 percent!
How is interest charged on a credit card?
The amount of credit card interest you pay each month can fluctuate based on your credit card balance and any changes to your interest rate. Your finance charge, which is how interest is applied to your balance, may be calculated in different ways based on your annual percentage rate and credit card balance. 2
Why do I pay a credit card processing fee?
Interchange rates also affect how much you pay per swipe, and they’re different for each credit card provider. Even so, some credit card processing companies charge a flat rate per transaction, but others charge a percentage in addition to the interchange cost. Your average fees are also affected by the types of payments you usually accept.
What happens if you pay your credit card in full every month?
By paying at least the minimum—and on time—you’ll build a good credit history and raise your credit score. Paying more than the minimum will reduce the interest you owe on your credit card balance. If you pay your balance in full every month, you can avoid interest payments altogether.
