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Good News Regarding Credit Card Fees

Posted by: RateAPY Bank Rates News
March 16th, 2010

There may be an end to the $40 cup of coffee in the near future. Under new banking regulations, credit card companies will not be able to charge customers a $35 over the limit fee for a $2 purchase. Over the limit fees are to be no higher than the amount of the transaction. For example if the $2 cup of coffee puts you over your limit, the bank can only charge you a $2 fee.

Credit Card Fees Curbed by Fed

Customers can opt out of being approved at the point of sale if the transaction exceeds the available balance on the credit card. This would prevent over the limit fees altogether. However, many people have said that they would rather not face the embarrassment of a declined card. The Federal Reserve, the nation’s banking regulator, has stepped in to counter that objection with further regulation limiting the amount of the over the limit fee.