Chase bank boasts access to almost half of the country’s households. It offers personal and business banking facilities, including credit cards with attractive rewards from brand names like Disney, Marriott, Hyatt, United, and Southwest Airlines.
Chase charges the greater of either $5 or 3% of each transaction. The charge applies to debt that is transferred between accounts, as well as to cash advances from an ATM. Chase also charges 3% in U.S. dollars per transaction on foreign transactions.
Your Chase credit card offers cash-back rewards for certain transactions and saving on personal, family-related, and socially-focused expenses. Let’s look at how transaction fees are charged and consider ways for you to pay less – or no – fees.
Transaction Fees On Chase Credit Card And How To Avoid Them
A transaction fee is charged to the client when certain electronic payments are made. It is usually around 3% of the total cost of purchase [PDF].
Transaction fees cover some payments made by the merchant and depend on transaction-risk calculations and the type of credit card used (reward, student, business card).
Other fees you are charged for cover costs paid by the merchant on purchase and divided among the companies who provide these services.
Interchange fees are paid to Chase, who issued the card, and address risks related to potential expenses incurred by the bank when it deals with fraud and the cost of bad debts.
Card companies like VISA and Mastercard charge an assessment fee that covers the costs of facilitating each specific transaction.
The fee applies, for example, to purchases made outside the USA, where different charges apply to purchases made in U.S. dollars vs. non-USD purchases.
Lastly, a payment-processor fee is paid to Chase, the issuing bank, which receives a request for payment through the credit card network and applies a validation process.
This includes verifying the credit card number, card owner’s details, the availability of funds, expiry date, and card verification value (CVV).
The bank charges two types of fees: flat fees, which are non-changeable for all types of transactions, and tiered fees, which change according to the calculated risk level of each transaction.
The rule of thumb here is that lower-risk transactions will likely carry lower costs.
Transaction Fees Chase Charges On Non-Dollar Purchases
Chase charges a fee for purchases made in any currency other-then-dollar. The fee is charged because Visa and Mastercard, the issuers of the cards, convert the purchase amount to dollars and transfer the amount to Chase.
The transaction fee addresses the costs involved in the conversion and transfer of the money to Chase.
How To Avoid Transaction Fees On Non-Dollar Purchases
Check out Chase’s no foreign transaction fee credit cards. Travel cards do not charge foreign transaction fees, and the annual fee is often covered by the savings made during travel.
A travel credit card may be a good choice if you travel frequently. Consider paying with local currency, avoiding credit card fees and regional surcharges.
Make international online purchases only with merchants that accept American credit cards and U.S. dollars. This is possible if they have a U.S.-based business or accept various international currencies, including U.S. dollars.
Transaction Fees Chase Charged On Transferring Balance
Balance transfer happens when you move your debt from one credit account to another. This is usually done when you find a credit card account that charges lower interest rates on your debt.
In such a case, you will save money by paying fewer interest charges. There is a cost involved, and Chase will charge you the highest of $5 or 3% of the transfer amount.
How To Avoid Transaction Fees On Transferring Balance
Chase offers Balance Transfer Credit cards on excellent terms, such as 0% intro APR for 15 months and no annual fees. Note that you cannot move your balance from one Chase card account to another. Your debt must come from another bank.
Transaction Fees Chase Charged On Cash Advances
A cash advance loan is available to credit card owners whose account permits such cash advances. You can get cash advances from an ATM using your credit card, but the bank may impose certain withdrawal limitations, such as daily limits.
The second facility is convenience checks. The bank will give you a checkbook to write checks to specific recipients, and the amount you specify in your check will be charged to your credit account.
Chase will charge you the highest of $5 or 3% of the advance and interest on the amount you withdrew.
How To Avoid Transaction Fees On Cash Advances
The best way to avoid transaction fees on cash advances is to look for another facility, such as a savings account, where you set a weekly or monthly amount. You will earn interest on your savings until you decide to use the money you saved.
Consider taking a loan, which will cost you much less in interest than cash advances from your credit card. A secured loan will save you even more money in lower interest payments.
One of Chase’s cash-back cards may bolster your debt-free saving fund. Some cards charge no annual fee and offer cash back on travel, drugstore and gas stations, restaurant dining, takeout, and delivery services.
Other Credit Card Fees, And How To Avoid Them
Banks like Chase ensure that the fees they charge reduce all risks taken to a minimum. Chase provides attractive rewards to incentivize customers to keep their banking habits healthy – and profitable.
In addition to transaction fees, Chase charges up to $29 for being late on making the minimum payment on your credit card, and late payment may also hurt your credit score.
Avoid late fees by creating an automatic payment of the minimum amount.
When a payment cannot go through due to a lack of funds, Chase will charge you a return payment fee of up to $29.
You can avoid this fee by ensuring you have the correct amount in your account before making a purchase.
Chase will contact you to get your consent to charge over-limit fees when your balance exceeds your credit limit and will decline the transaction if you opt out of payment.
Avoid over-limit fees by making sure you keep below your credit limit.
You may request a new card if your card gets misplaced, stolen, or damaged, and many companies will not charge for a card replacement or replace the card for free once.
You can avoid lost card charges by always keeping the card in a safe place.
Conclusion
Chase offers innovative credit facilities tailored to each client’s profile, purchase history, behavior, and money management. While fees may seem small and insignificant, the chargeable amounts may grow and become unwieldy.
In addition, clients who fall behind on their obligations may hurt their credit scores.