But any games that card companies play are not going unnoticed. New federal rules as of Oct. 1 will require credit card companies to list their penalty rates alongside their other required disclosures. There are three other fees that savvy card users should know about. When you make a balance transfer from one card to get a better interest rate on another, your new card company can charge you a fee, sometimes as high as 3 percent. And as more cards go global, large banks have found another way to tack on fees.
Some companies now charge currency conversion fees for purchases made in foreign currencies.
That can cost you an extra 2 percent to 3 percent if you use your card abroad. Gotcha alert One of the slick ways card companies add costs is with optional add-on products, such as vacation clubs, savings coupon books and unnecessary card protection insurance. One reason Providian was sued was that it signed up credit-impaired consumers and then added charges for products the cardholders never ordered and didn't want. As a defense against increasing consumer anger, many card companies are now inserting clauses in their card agreements requiring that any complaints be handled in arbitration. That means that if you accept the card, you've agreed to give up your right to a jury trial.