american express india cards fees

Credit Card Charges and Fees


Credit Cards are a great tool for making purchases and earning rewards. Just like any other service, Credit Cards charge you a fee for providing the convenience and flexibility of instant credit. In order to choose
the best Card with minimum charges, it is first necessary to understand the types of charges in a Credit Card. Some of the charges you can avoid and some you must pay to be able to keep enjoying the perks and services of a Credit Card. 

What Credit Card Charges Do I need to Pay?

 

The charges you pay partly depend on the type of Card you have and how you use it. Following are the charges normally levied for Credit Card usage in India.


Monthly Percentage Rate

 

The interest rate of a Credit Card is commonly expressed as MPR. Interest is payable at the monthly percentage rate on all Charges from the date the Cardmember incurs the transaction until they are fully repaid, except where an interest free period applies. 

Interest, if payable, is calculated by multiplying:

  • The daily balance of Charges on which interest is payable; by

  • The daily percentage rate (monthly rate multiplied by twelve divided by 365); and then

  • Adding up the daily interest Charges for the applicable period.

For More Details Please Refer MITC

 

Credit Card fees

 

Also known as annual fees or annual maintenance charge, Credit Card fees is an annual fee charged to use a Credit Card. Generally, a Card with higher annual fees offers more benefits and rewards than a Card with lesser annual fees.

For e.g.,   American Express Platinum ReserveSM Credit Card  charges INR 5,000 plus applicable taxes in First Year and INR 10,000 plus applicable taxes second year onwards. Cardholders enjoy a range of benefits including exclusive dining experiences, Golf entry and airport lounge use.

Fees and Interest rates on American Express Credit Cards 

 

The various Credit Cards and their Fees. 

Card Name Card Type

Annual Fee

(Applicable taxes extra)

Finance Charges Per Month for

Goods & Services, Cash & Balance

Transfer

Cash
Advance Fee


American Express® Platinum Card



Charge Card



INR 60,000

N/A

3.5% of the Cash

Advance amount,

subject to a minimum of

INR 250



American Express Platinum ReserveSM Credit Card



Credit Card



INR 5,000(1st year)

INR 10,000 (2nd year
onwards)



3.5%*** p.m.

3.5% of the Cash

Advance amount,

subject to a minimum of

INR 250



American Express SmartEarn™ Credit Card



Credit Card



INR 495(1st year)

INR 495## (2nd
year onwards)



3.5%*** p.m.

3.5% of the Cash

Advance amount,

subject to a minimum of

INR 250



American Express® Platinum Travel Credit Card



Credit Card



INR 3,500(1st year)

INR 5,000 (2nd year
onwards)



3.5%*** p.m.

3.5% of the Cash

Advance amount,

subject to a minimum of

INR 250



American Express Membership Rewards® Credit Card



Credit Card



INR 1,000(1st year)

INR 4,500 (2nd year
onwards)



3.5%*** p.m.

3.5% of the Cash

Advance amount,

subject to a minimum of

INR 250

American Express® Gold Card

Charge Card



INR 1,000(1st year)

INR 4,500 (2nd year onwards)



3.5%*** p.m.

3.5% of the Cash

Advance amount,

subject to a minimum of

INR 250


How to Avoid Credit Card Fees and Charges?

Many of us worry about ending up in debt by using a Credit Card. However, with careful financial management you can avoid paying extra charges on your Card wherever possible.

How to Avoid Credit Card Fees?


Most Credit Cards charge you an annual fee for their usage. But some waive off this fee if you use your Card regularly and achieve a minimum spend in the given time. For e.g., American Express SmartEarn Credit Card offers a renewal fee waiver on eligible spend1 of INR 40,000 and above in the previous year of Card Membership. Some Cards offer zero Credit Card fees in the first year of the Card Membership. It is automatically added to your Billing Statement from next year onwards. Some basic Cards may offer zero annual fees for the lifetime too. The fees also depends on the card category you choose. 

How to Avoid Additional Credit Card charges?

 

Credit Cards are a great tool to manage personal finance and through diligent financial management, you can help save a lot on your extra Credit Card charges wherever possible. Here are some tips to help you avoid additional charges:

 

  • Pay your balance in full each month
    Paying the full amount owed each month ensures that you won’t have to pay interest on the money you have borrowed. While not always possible this is the best way to avoid Interest charges. If possible, set up a monthly direct Debit to repay your Card balance in full.

  • Pay as much of the balance as possible
    If you can’t pay the full balance each month then endeavour to pay as much as possible. All Credit Cards come with “minimum monthly repayments”. Meeting these ensures you don’t incur late fees although you will still accrue interest on the remaining balance in the following month. Paying off more than the minimum each month reduces the interest you are charged.

  • Pay on or before the Payment Due date
    If you default on a Credit Card payment you are charged a late fee. These late fees are added to your Credit Card debt. Set yourself a reminder to make your Credit Card payments every month and avoid these fees completely.

  • Do not exceed your credit limit
    Your Credit limit is your contractually agreed spending limit per month. If you spend above this limit on your Card, you are charged an over-limit fee. This can compromise your rewards and your ability to use the Card in future by affecting your Credit rating.

  • Use a Charge Card
    Charge Cards do not allow you to have Credit or debt. The outstanding balance on a Charge Card must be repaid, in full, at the end of every month. If you are certain that you will always have enough bank balance to make repayments, then a Charge Card is a useful tool to manage your finances.

 

What exactly is a ‘Credit Card minimum repayment’?

 

Credit Card minimum repayment or the Minimum Due amount is the minimum amount that you need to pay on or before the Payment Due date to keep your account functioning and avoid incurring any late payment fees. If not, it might adversely impact your credit score. Making the minimum repayment on time will only save you the late fee. You will still have to pay the interest on the balance due amount. Even if you can’t make the full payment, it is always a good idea to pay more than the Minimum Due amount to reduce the interest on the remaining balance. If you are aiming to maintain a good credit score and sound finances, you must try paying more than the Minimum Due amount or even the entire amount on a regular basis.

 

 

Useful terms

Credit and Charge Cards Explained

 

Has talk of interest, annual fees, rates and percentages left you feeling confused?

 

Our simple Credit and Charge Card guides are a great place to start.

 

What is Card Interest

How Credit Cards and Charge Cards work

 

What is Credit Limit

 

Earning Loyalty Points

 

Earn Air Miles

 

What is a Charge Card

 

How to choose a type of Card

American Express® Benefits

american express india fraud and shopping protection

FRAUD AND SHOPPING PROTECTION

Your security and protection are our priority. Our technology has been designed to give you peace of mind when using your card.



 
american express india world class customer service

WORLD CLASS CUSTOMER SERVICE

Access to our customer service is available 24/7 by phone, text or email.




 
american express india contactless payments

CONTACTLESS PAYMENTS

Contactless is the quick, easy and secure way to make payments - Simply touch your American Express Card on the reader, wait for the beep and you're done. What's more, with Amex pay and Apple PayTM you can even pay with your phone.

 

Explore Our Credit Cards

American Express Offers a range of Credit Cards with different rewards and benefits tailored to your lifestyle and interests.

FOOTNOTES

 

## Annual fee of INR 495 will be 100% waived off if total money spent on American Express SmartEarn™ Credit Card in the immediately preceding Card Membership year is INR 40,000 or more.

*** Cardmember will be charged a revised interest rate of 3.99% per month if the Minimum Payment Due is not paid by the due date thrice in a 12-month period. 

** Cardmember will be charged a revised interest rate of 3.99% per month if the Minimum Payment Due is not paid by the due date twice in a 12-month period.

1. Eligible spends do not include cash advances, express cash transactions, drafts made from the account, balance transfers and fees.