WealthGuide
18 January 2025•Credit Cards

Understanding Credit Card Fees and Charges in Ireland

Credit cards are a convenient financial tool, but they come with various fees and charges that can add up if not managed carefully. Understanding these costs is essential for making informed decisions about credit card usage in Ireland.

By WealthGuide

Common Credit Card Fees

  1. Annual Fees
    Some credit cards charge an annual fee for account maintenance. In Ireland, this fee varies depending on the card type and provider. For example, the Government Stamp Duty for credit cards is €30 per year per account, regardless of the number of cards issued under that account.

  2. Interest Charges
    If you carry a balance beyond your payment due date, you’ll incur interest charges based on your card’s Annual Percentage Rate (APR). Paying your full balance each month can help you avoid these costs.

  3. Late Payment Fees
    If you miss your payment due date, a late payment fee is applied. For instance, AIB charges €7 for late payments. Setting up a direct debit can help avoid this fee.

  4. Over-Limit Fees
    Spending beyond your credit limit incurs an over-limit fee, typically around €7 in Ireland. Monitoring your spending and setting alerts can prevent this.

  5. Cash Advance Fees
    Withdrawing cash using your credit card attracts a cash advance fee (e.g., 1.5% of the transaction value, with a minimum charge of €1.90 to €2.54). Additionally, interest on cash advances starts accruing immediately.

  6. Foreign Transaction Fees
    When using your card abroad or for non-euro transactions, you may face currency conversion fees ranging from 1.75% to 2.75% of the transaction value.

  7. Returned Payment Fees
    If a payment fails due to insufficient funds, a returned payment fee (e.g., €5 to €7) may apply.

  8. Miscellaneous Charges
    These include fees for requesting paper statements (€4), sales voucher copies (€5), or replacing lost cards (varies by provider).

How to Minimise Credit Card Fees

  • Pay Your Balance in Full: Avoid interest charges by paying off your balance each month.
  • Set Up Alerts or Direct Debits: Ensure timely payments to avoid late fees.
  • Choose No-Fee Cards: Some providers offer cards without annual fees or foreign transaction fees.
  • Limit Cash Advances: Use debit cards or cash reserves instead of withdrawing cash via credit cards.

Conclusion

Credit cards can be an efficient financial tool if used wisely, but understanding their associated costs is crucial. By staying informed about fees and adopting good financial habits, you can make the most of your credit card while avoiding unnecessary expenses. Always review the terms and conditions of your card to ensure it aligns with your financial needs and goals.