Credit card fees paid by households drop

Friday 17 June 2011

Article by Mozo

The fees charged by banks to households using credit cards were lower in 2010 than in the preceding year, new figures show.

Banks' fee income from householders declines

Data from the Reserve Bank of Australia revealed that despite banks' fees income from businesses rising, there was a drop in the amount charged to consumers.

The total paid was $4.2 billion, which was the lowest level recorded since 2006.

Steven Munchenberg, chief executive of the Australian Bankers Association, stated: "At a time when budgets are under pressure from rising prices, this fall in bank fees is a welcome result for families and individual customers."

It is believed that 80 per cent of the decline can be attributed to exception fees, which more than halved year-on-year.

Altogether, the drop in the banks' fee income collected from households in the country fell 16 per cent in 2010 compared to the preceding year.

Earlier this month, research by RMIT University revealed that men are more prone to making impulse purchases on their plastic than women, the Herald Sun reported.

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