February 2010 is almost upon us, which means the CARD Act is about to kick in to full effect. Of course, the credit card companies haven’t been resting on their laurels, waiting for the government to take away their moneymakers. They’ve been thinking up creative ways to sneak in extra fees and charges without you knowing. With a little vigilance, you can catch some of these – and even prevent them. Read on to find out how credit card companies are getting more of your money in 2010.

Paper Statements

All “Go Green” sentiments aside, it’s in the credit card companies best interests to forgo paper statements because it costs them in postage and supplies. To recoup their losses on printing statements when you can get them online, some companies are now tacking on “paper statement” surcharges of around $1 a month. Not astronomical, but it can certainly add up – especially when you consider that they used to be free. Watch your statement carefully for any new charges, or check out this list of companies now charging for paper billing compiled by The Consumerist. Or better yet, go paperless now just in case.

If you’re uncomfortable with leaving your financial details in the cloud, you might want to save a digital copy locally or print it off on your own. Personally, I use CutePDF to “print” off virtual copies and save them on my hard drive. Of course, this poses a greater security risk – especially if you have a laptop, since any punk in a coffee shop can nab it and have full access to your financial details. But saving some record locally – whether you keep it on an external hard drive that stays at home or in an encrypted volume – is necessary, since you may lose access to your online statements after you close your account.

Annual Fees

Annual fees are becoming the norm and it seems like just a matter of time before the free credit card is a thing of the past. This tactic is sometimes selectively imposed by credit card companies. Some consumers suspect that only cardholders who continually pay off their balance and never pay any interest are targeted for annual fees, though this hasn’t been confirmed yet. Other credit card issuers are applying annual fees to all of their customers.

Watch your mailbox for any nondescript mailings from your credit card company as these will often contain your new credit card terms.  Also be on the lookout for any emails notifying you that you have new messages that can only be viewed when you login to your account (a pain, I know, but that’s the idea).

Inactivity Fees

Another way that credit card companies are making money from customers who don’t fall into the vicious cycle of paying off finance charges and late fees is by imposing an “inactivity fee.” Bloomberg reported on this a few months ago, This may have already existed in your contract but hasn’t applied since you set a card aside due to changing terms. Pull up your contract and sort through it to make sure that you aren’t liable to pay a fee after 12 months or so of inactivity. Or, just to be safe, order a pizza or a CD with your credit card, pay it off immediately, and then put it back in the drawer for a spell.

Secondary Cards, Replacement Cards

Credit card companies have also started charging for second cards (i.e. authorized users) and replacement cards. This isn’t really avoidable – when you need a new card, you need a new card. But if you’re shopping around for a new credit card, you may want to look for one that allows free secondary cards for family members.

Temporarily Waived Fees

Another way that fees and subscription charges can sneak up on you is when they are “waived” when you sign up but kick in after 12 months. For example, many credit card contracts have you agree to annual fees when you first sign up but you won’t notice because it’s waived for the first year. You’ll see these advertised as “$0 annual fee*” with “for the first year” in tiny print. Other cards come with a baked-in annual fee that gets waived after you pass a certain spending threshold or if you apply a certain amount of reward points. If your spending behavior has changed, you may find yourself blindsided by dormant fees.

Cap Removals, Upped Balance Transfer Fees and Rates

Balance transfers are notoriously tricky to navigate. On the one hand, they really can help you save hundreds of dollars in the long run. But on the other hand, they can sometimes hide big fees. Typically, balance transfer fees are calculated from a percentage of the balance you are transferring. To make these more consumer friendly, many credit card companies had a cap, so for example, you wouldn’t pay any more than $250. But some credit card companies are doing away with those caps, which means you can potentially pay much, much more, which might even negate the benefit of transferring your balance.

Raised Minimum Finance Charge

You’ve probably already heard the horror stories about consumers having their minimum finance charge raised. Oftentimes, these people are already on the ropes and could only afford to pay the bare minimum (a problem in itself). For some, when that minimum payment gets raised, it can force people to miss their payments, incurring late fees.

“Pick a Rate” Variable Rates

With the new legislation putting the kibosh on arbitrarily fiddling with fixed rates, many of us saw our cards being switched to variable rates. The formula they disclose for calculating your interest rate has a sheen of accountability – it’s usually pegged to the prime rate (i.e. + 13.99% of prime rate). But many credit card companies add a devious little caveat to that which says that the rate can depend on the “highest prime rate within 90 days.” Credit card companies can then pick and choose which prime rate to base their calculation off of. So, if there’s a spike in April, you’ll be paying that high rate until July. And if on July 2nd, there’s another spike, you’re back up at the top again. With a three month span of prime rate figures to choose from, there’s plenty of leeway for credit card companies to give you a high rate.

There’s  no real hedge against this tactic except to always assume the worst when signing on the dotted line. Remember that we’re just coming off a recession – so the interest rates are bound to go up from here. Keep that in mind when you apply for a variable rate credit card.

Witnessed a sneaky credit card fee tactic? Let us know about it in the comments.

Image adapted from Marxchivist

Related posts:

1. 20 Common Credit Card Fees to Watch Out For!
2. The CARD Act: How it Will and Won’t Protect You After February 22
3. 8 Sneaky Credit Card Company Tricks
4. New Credit Card Rules: Brace Yourself for the Backlash
5. Credit Card Fees: The Fed’s Latest Proposal