Banks wallow in credit card fees revenue
(25 May 2004 – Australia) Credit card fees grew a massive 38 percent last year, accounting for $604 million worth of fees revenue, according to Reserve Bank of Australia figures.
The figure was almost double the $345 million generated by credit card fees in 2002.
The RBA figures revealed credit cards provided the fastest growing source of revenue fees in 2003, netting banks some $3 billion.
Fees charged to business increased to $5.6 billion.
"The banks in aggregate now earn almost as much from households in credit card fees as they do from fees on housing lending," the RBA said.
"The continued rapid growth in credit card spending, together with increases in annual membership fees and higher charges for overdrawn accounts, late payments and cash advances, contributed to banks’ fee income from credit cards."
The RBA figures revealed credit cards provided the fastest growing source of revenue fees in 2003, netting banks some $3 billion.
Fees charged to business increased to $5.6 billion.
"The banks in aggregate now earn almost as much from households in credit card fees as they do from fees on housing lending," the RBA said.
"The continued rapid growth in credit card spending, together with increases in annual membership fees and higher charges for overdrawn accounts, late payments and cash advances, contributed to banks’ fee income from credit cards."
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