Credit Card Checks Are Not Free

Category: Finance, Credit.

Credit card companies have worked on numerous innovations and are constantly evolving to create a better experience for card holders, one of the latest innovations is credit card checks. These checks are particularly useful when payments have to be made to organisations that do not accept credit cards.

Just like a regular bank accounts even credit cards offer customers the facility to use checks. Also they are increasingly popular as being backup cash reserves. Let's take an example, say a card holder has actually issued bank checks for amounts more than what he has in his bank account. In the course of this article I will explain how a person can use these checks effectively and what are the pros and cons of them. Today banks charge up to$ 35 for a bounced check the question is, can a person deposit funds into his bank account using his credit card? Similarly paying utility bills like electricity bills are also simplified by issuing card checks when there is no available balance in the bank.

Yes, by depositing a credit card check in the account, the card holder can ensure that none of his checks bounce, and once he has adequate funds he can then pay the card company as usual. Credit card checks are not free. If you are looking for a credit card that offers checks, make sure you choose it that has low fees associated with those checks, also most do not charge additional fees for issuing them for a limited period of time, make sure you understand clearly the duration during which you will not be charged fees. Unlike bank checks that usually have no charges associated with issuing checks, a credit card check charges an interest each time a check is issued, the charges for issuing it vary from company to company, but almost all credit card companies charge fees for' processing' the check issued. An additional downside with most card checks is that when compared to a regular credit card, most do not generate any reward points or incur any cash backs. How to use credit card checks. In the long run issuing too many of them may not be a good idea, as not only are you paying additional fees for issuing a check, but you are also not getting reward points that you would have otherwise received by using your card.

Credit card checks are a new concept when compared to other card innovations, and in time this innovation too will improve. As it stands these checks incur heavy charges if they bounce, and the interest rates associated with them are also high. However, the current scenario for these checks is simply that they are best left used for emergency purposes and making payments when there are no other options available. There is no denying that they are a brilliant innovation, but there are a few things that are going against them, this is expected to change over a period of time. As mentioned earlier they are not free, so you are better of using them during the promotional period when they are free, or else for emergency purposes. If you are a card holder and have the opportunity to use credit card check make sure you are fully aware of the charges that are associated with each one you issue. Before you use any credit card, not just credit card checks, you should read the terms and conditions of the card and clearly understand the charges that are involved, and also the APR that you will incur when you make check payments or other larger payments.