Get Charged A Fee When You Have A Credit On You Credit Card

[jeffrey]

Shaking my head while reading this one - credit card companies aren't making enough on those that don't pay off their credit card balance each month so what do they do? How about charge a fee to those who have a credit on their credit cards - I kid you not.

Card holders charged for being in credit | Personal Finance | Money | Telegraph

[sweeps]

That is ridiculous. Good article.

[boefixepa]

Sad, so very sad. I had issues before with MBNA, just a reasurance that I will never have another account with them. I wonder how long it will be before other CC follow suite.

[disneysteve]

I wonder what the point is. Isn't it to the company's benefit since they get to earn interest on the money they are holding? Or is it because it is costing them money to maintain the accounts, send statements, etc.?

I've got a credit on my Discover card right now because I redeemed my cashback bonus and it was for more than my outstanding balance. I guess I better charge something and use up that credit.

[tinapbeana]

Originally Posted by disneysteve

I wonder what the point is. Isn't it to the company's benefit since they get to earn interest on the money they are holding? Or is it because it is costing them money to maintain the accounts, send statements, etc.?

well, with this lovely new system they get to

1. earn interest on the extra money you sent them
2. earn money by charging you a fee for creating a credit balance
3. earn money charging you interest on the now non-zero balance on your credit card account, since i'm guessing the charge the fee to your card

three streams of revenue rather than just one

[poundwise]

Chase does this too.

Discover does not.

[autoxer]

I can't believe they didn't give the option to have a check sent out. Either spend it, transfer it or donate it, but you can't have it back. If they ever try that with me, I'll close the account.

[vsjhoc]

Here's another reason a credit card issuer does not want you to carry a credit on your account: it shows up on their balance sheet as a liability. Having a few thousand or million dollars in accounts payable isn't good for their bottom line. Cry me a river.