Bank Support: The Harsh Reality of Credit Card Fees

To maintain financial fitness, let banking work for you. For tips on your banking needs, just ask Alex, our expert banker. Learn more about what fees are associated with credit cards.?Discover how to tell if a $100 bill is real.?Gain a better understanding of electronic checks and what they mean to you.

Question:?What fees are associated with credit cards? Asked by: Juan from Peoria, Arizona,

Answer:?Credit cards are known for having a lot of fees.?The most common fee is the interest charge.?This is applied when the credit card balance is not fully paid at the end of the billing cycle.?This is shown as either an annual percentage rate (APR) or interest rate and is usually between 17% to 24% for purchases.?Another well known fee is the annual fee.?This is the price paid every year to remain a cardholder and keep the account open.?This fee is between $35 to $500 and is often used to pay for the credit card’s rewards and benefits.?Please note that several credit cards don’t charge an annual fee.?There is also the late fee.?This is incurred when the minimum payment on a credit card is missed.?The average late fee is around $35, and most credit card companies will provide a grace period before charging it.?Finally, there is the cash advance fee.?This is charged when the cardholder uses their credit limit to take out cash.?It is generally 3% to 5% of the total amount of cash advanced and has a higher APR or interest rate than purchases.?Additional fees can be found on the credit card statement or by contacting the credit card company.

Question:?How can you tell if a $100 bill is real? Asked by: Stephanie from Sterling Heights, Michigan.

Answer:? There are several ways to verify that a new (2013 to present) $100 bill is legitimate.?First, there is a watermark, a faint image of Benjamin Franklin, located on the blank right side of the portrait. It can be seen clearly if you hold the note up to light.?Second, there is color shifting ink.?The color of the large numeral 100, located on the bottom right-hand corner of the bill, will turn from green to copper when properly tilted.?There is also a green liberty bell in the copper inkwell that can be seen with similar color changing ink.?Third, there is the security thread.?Located vertically on the left of the portrait, the thread will have USA and 100 in an alternating pattern.?When held to an ultraviolet light, the thread will glow pink.?Finally, there is a blue 3-D security ribbon which is located just right of the portrait.?When moved back and forth, this vertical ribbon will display 100s and bells that move side to side.

Question:?What are electronic checks? Asked by: Lauren from Warwick, Rhode Island.

Answer:?An electronic check or e-check is the digital version of a paper check.?E-checks are frequently used to make online payments.?The routing number, checking account number, and name on the account are needed to process an e-check.?The customer is also required to authorize the transaction by either digitally accepting the merchant’s terms and conditions or signing a contract.?The payment is electronically withdrawn from the payer’s checking account and transferred to the merchant’s bank account, usually within three to five business days, via the Automated Clearing House (ACH) network.?E-checks have more security features and less costs than standard paper checks.

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Written by: Alex Sanchez, Branch Manager

Important: For your specific questions about banking, contact your banking expert, Alex, at: [email protected]

Alex has been in banking for almost 20 years.?He has worked for such notable banks as Bank of America, US Bank, and Chase.?Alex has his bachelor’s degree in Business Economic from the University of California Riverside.

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