To avoid service charges on a debit card, maintain minimum balance requirements, set up direct deposits, or switch to a fee-free bank. Other effective strategies include using only in-network ATMs to avoid operator fees, opting for e-statements, and making regular purchases to avoid inactivity fees.
For debit cards and prepaid cards, surcharging is prohibited—even when the card is run as a signature-based transaction without the PIN. This restriction was implemented by the Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Banks charge a healthy fee for every transaction that causes an overdraft, so to avoid paying these fees and avoid being levied significant charges, track your account balance regularly; know the pending transactions, and set up low-balance alerts for any instances where your balance drops below a particular threshold.
Service charges are usually incurred for transactions not included with your account type or when you exceed the number of transactions that is included with your account.
It's usually cheaper to make payments via the EFTPOS network. You can do this by swiping or inserting your card and selecting the 'Savings' payment option. Options like 'tap and go' or paying with your digital wallet are likely to attract higher fees, as they default to the Visa or Mastercard network.
Convenience fees can be up to 3% of the transaction amount, which may seem small but can significantly impact profitability over time. For example, a company processing $1 million annually could face $30,000 in additional fees. Understanding these fees and their impact is crucial for maintaining profitability.
What types of cards can a surcharge be applied to? Surcharges may only be applied to credit card and Interac debit card transactions. Further, a Merchant must not apply a surcharge on Visa Debit, Mastercard Debit, or prepaid products issued by a Payment Card Network.
State-by-State Legality
As of June 2025 surcharges are prohibited or restricted in the following: California. Connecticut. Maine.
No. A business is generally free to charge however much it wants and can then provide a breakdown of the various fees that are included in its listed or advertised price. But the posted price must include the full amount that a consumer must pay for that good or service.
The average processing fee for debit card transactions is 34 cents in interchange plus your processor's markup.
A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.
The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.
Are there any fees for using my debit card in Canada? Yes, using your debit card in Canada may incur fees. Most banks charge between CAD $2 and $5 per international card transaction.
Borrowing more than the authorized limit on a credit card may lower your credit score. Try to use less than 30% of your available credit. It's better to have a higher credit limit and use less of it each month. For example, suppose you have a credit card with a $5,000 limit and an average borrowing amount of $1,000.
Businesses can only apply surcharges to credit card transactions. It is a violation of card brand rules and some state laws to apply surcharges to debit or prepaid card transactions, even when the debit or prepaid card is treated like a credit card during checkout.
- use cash (not every place have change though) - Ask a Chinese person who you know to transfer Yuan into your balance in WeChat or Alipay and you give them cash (best option to avoid the fee) - ask them to split the bills 200 or less but it's a hassle especially when there's line behind you.