More credit card surprises

Sunday's Star had another excellent column by Ellen Roseman. This was the last in a series dealing with credit cards. Its title was "Some final thoughts on credit cards." (It is available online at http://www.thestar.com/Business/article/541945".)

Among the lesser documented features of credit cards she addressed:

-The holds various merchants will put on your credit card. Most people are aware that there is a hold when they charge a hotel room or a rental car, but might be surprised to learn that if you pay at the pump for your gasoline with a credit card, there may well have been a hold of $100 put on your card. The difference between your purchase and that $100 may not be removed from your account for a couple of days. (This isn't the way she put it, but I think is what she meant to say.)

-Such a charge (or series of charges) could put you close to your credit limit. If the hold hasn't been removed by the time the next charge is processed, you could face a fee for going over your limit, or for having had a charge refused. (These fees range from $10 to $35.)

-If you have a credit balance on your credit card (for some reason, you have given them more money than you owe), you may be charged a fee. She lists five issuers (including Scotiabank) that will charge you from $5 to $10 for this situation. (Sears MasterCard, meanwhile, will ding you $25 for an inactive balance.)

-And one set of charges that I have been unable to summarize, so I will quote her:

"Beware of new charges for purchases of wire transfers, money orders, traveller's cheques, bets, lottery tickets and casino gaming chips.

"Some card issuers treat these transactions as cash advances, charging interest from the first day until they're paid off.

"Some treat them as purchases, but add fees ranging from $2.50 in Canada and $5 outside Canada at CIBC and RBC to 1 per cent of the amount at MBNA (with a minimum of $7.50 and no maximum)."

It's hard to play a game if you don't know the rules. Look for further postings as I come across more instances of articles addressing these issues.

Also, I have a free report available addressing 11 other things your credit card issuer would just as soon you didn't know. If you are interested in a copy, let me know.