The Russian E-Money Association in assistance with the Central Bank of Russia prepared a regulatory framework that would legitimize e-wallet inactivity fees
on the domestic market, JPMorgan analyst Alexei Gogolev tells investors in a research note.
To meet the requirements, the Kaiku Card provides a clearly communicated fee structure that covers day-to-day card use; doesn't allow overdraft coverage or fees; permits inactivity fees
only if an account has been inactive for a certain period of time; has consumer-friendly communications of fees and disclosures; individual FDIC/NCUA insurance; Visa Zero Liability fraud protection; and Regulation E Lite consumer protections.
"These cards come with a lot of fees; from fees for cash withdrawals to balance inquiries to lost or stolen cards to overdrafts and even inactivity fees
," Gunshannon wrote in the petition.
Some vendors charge ATM usage or inactivity fees
. Charging students a fee to get access to their student loan money is offensive to many.
But it claims several firms are penalising those who don't use their plastic by imposing "inactivity fees
The rule also bars issuers from charging cardholders with "inactivity fees
." Issuers no longer will be allowed to charge cardholders for not using their cards.
The new rule also bans "inactivity fees
," which are charged when a consumer fails to use the credit card within a certain time period, and prohibits multiple penalty fees for a single violation of the account terms, such as an over-the-limit transaction or late payment.
Customers would be well advised to step up the kind of activity that can help keep such outrageous practices as inactivity fees
from swiping their cash: Read the mailings; limit the number of cards in the wallet; restrain purchases; and pay the entire balance, or as much as possible, by the due date every month.
The report also said that customers might have to deal with tiered late fee structures, inactivity fees
, account management fees and international transaction fees that could neutralise any savings that could accrue because of the proposed reforms.
These range from late payment fees, to over-limit fees, to inactivity fees
. Because of this constant barrage of fee assessments, consumers have become very wary, and frankly, tired of living under these conditions.
Department stores, grocery chains, coffee shops and other retailers sell certificates and cards with expiration dates or inactivity fees
(also called "dormancy" fees) that lower the value of the card each month it is not used after a specified time.