A Beginner’s Guide to Understanding RuPay Credit Card Fees and Charges

RuPay credit cards are popular in India, offering many benefits like cashbacks, rewards, and easy access to credit. However, before using any credit card, it’s essential to understand the various fees that come with it. This post will help you as a beginner to understand RuPay credit card fees in simple terms, so you can make better financial decisions.

What is a RuPay Credit Card?

The RuPay network, an Indian domestic card scheme created by the National Payments Corporation of India (NPCI), is where a RuPay credit card functions. It is intended to replace international card networks like Visa and MasterCard and enable electronic financial transactions throughout India. Domestic credit cardholders use RuPay cards because they are widely accepted at ATMs, point-of-sale (POS) terminals, and online retailers in India.

What Are RuPay Credit Card Fees and Charges?

Fees and charges are extra amounts that a bank or credit card company may ask you to pay while using your RuPay credit card. They can be applied for different reasons, such as using the card, missing payments, or withdrawing cash. Here are some of the fees and charges associated with RuPay credit cards:

  • Joining Fees

One feature common to all RuPay credit cards is a “joining fee.” When you initially receive the card, you must pay this one-time cost. While some cards charge a nominal fee for joining, others don’t charge any. Verify whether your card has a membership fee before committing.

  • Annual Fees

You may be required to pay an “annual fee” each year to continue using your RuPay credit card. Certain credit cards waive this charge within the first year or when you use the card for a predetermined amount. Before selecting a card, always determine the yearly charge, as it can vary.

  • Interest Charges (APR)

Among the most significant costs is the “interest charge.” If you fail to pay your credit card bill in full by the deadline, the bank will apply interest to the outstanding balance. The acronym for this interest is APR or annual percentage rate. You will pay extra interest the longer you put off paying your debt. Always try to pay your entire payment on time to avoid this fee.

  • Cash Withdrawal Fees (Cash Advance Fees)

When using your RuPay credit card to get cash out of an ATM, you will incur additional expenses, referred to as “cash advance fees.” You will also be required to pay interest on the money from the day you take it out until you return it in full. Because of this, making cash withdrawals with a credit card might be costly, so it’s recommended to avoid doing so unless essential.

  • Duplicate Statement Fees

Occasionally, you may require a copy of your credit card statement from a prior month. Although they could charge you a little “duplicate statement fee” for each old bill you request, banks can supply this. Always check to see whether you can see past invoices online to avoid paying this cost, as many banks offer free online statements.

  • Balance Transfer Fees

Certain RuPay credit cards allow you to move your balance from one credit card to another, a “balance transfer.” Although the interest rate may be cheaper, you must typically pay a “balance transfer fee.”

  • Over-Limit Fees

Each credit card has a spending limit, the highest amount that can be spent with the card. The bank will assess an “over-limit fee if you exceed this limit.” To avoid this, always monitor your spending and make an effort to stay within your card’s credit limit.

How to Avoid or Minimise Fees

Understanding RuPay credit card fees can help you avoid unnecessary costs. Here are a few simple tips:

  • Pay your bill in full: This will help you avoid interest charges and late fees.
  • Keep track of your spending: Don’t exceed your credit limit to avoid over-limit fees.
  • Avoid cash withdrawals: Use your card for purchases instead of cash to avoid cash advance fees.
  • Use your card wisely abroad: Be mindful of foreign transaction fees when travelling or shopping internationally.
  • Look for fee waivers: Some cards offer fee waivers if you spend a certain amount each year.

Why Understanding Fees Is Important

Managing your money requires knowing the charges associated with your RuPay credit card. If you’re not careful, these fees can mount up, making using your card more costly. By being aware of these charges, you may use your credit card more wisely and prevent overspending.

Conclusion

RuPay credit cards offer convenience and rewards but come with various fees and charges. As a beginner, it’s essential to be aware of these costs to avoid surprises. By understanding how these fees work and following simple tips like paying your bill on time and keeping your spending in check, you can use your RuPay credit card wisely without getting burdened by extra charges.