Two major credit card companies have recently come under fire for quietly implementing a $1.99 fee for customers who choose to receive paper statements instead of switching to digital billing.
This shift aims to encourage users to embrace digital statements, but for those who prefer traditional paper statements, it can feel like an unwelcome surprise.
Which Companies Are Affected?
This Article Includes
One prominent company implementing this fee is Synchrony Bank, which issues over 100 co-branded and store-affiliated credit cards. Some well-known cards include the Sam’s Club Credit Card, Lowe’s Store Card, and Amazon Store Card.
Another major player, Citibank, has also updated its policies, stating that going paperless is “required” to access accounts via Citi.com and the Citi Mobile App.
While there is no law preventing customers from requesting paper statements, credit card companies require permission to transition to paperless billing. This has led to frustration among consumers who feel pressured to comply with this digital push.
Real Stories from Customers
Alicia Galowitsch, a customer affected by these changes, spoke to NBC about her experience. She shared that the added fees have taken a toll on her family’s budget, making it difficult for them to make ends meet.
“It’s very tight. It’s very tight to where we had to start going to a food bank,” she explained, highlighting how even small fees can add up to significant burdens.
Alicia emphasized the importance of paper statements for her family’s organization, saying, “If I’m not here, the payments are going to be late because Mark’s not going to know what to do.” For her, having everything written down makes managing finances easier.
Concerns from the Community
The introduction of this fee has sparked outrage among customers, many of whom have taken to social media platforms like Reddit to express their dissatisfaction.
One user warned others about the PayPal Mastercard, which will also start charging fees for those who don’t opt for electronic statements. Another user mentioned they were considering closing their account over the fee, showcasing the growing frustration among cardholders.
Changing Value of Credit Card Rewards
In addition to the new fees, credit card users are also facing changes in the value of their reward points. Over the past few years, the purchasing power of credit card points has declined due to inflation.
For example, a point that was once worth about one cent has lost approximately 20% of its value since 2018, according to the Bureau of Labor Statistics. This decline can significantly impact how customers redeem their rewards for travel, hotels, or cash.
Signs Your Credit Has Been Compromised
As you navigate the complexities of credit card use and potential fees, it’s crucial to be vigilant about your financial security. Here are some signs that your credit may have been compromised, according to Michael Bruemmer, vice president of Experian Global Data Breach Resolution and Consumer Protection:
- Unrecognized charges on your credit card or bank account
- Unexpected credit checks on your report
- Receiving unfamiliar bills
- A sudden drop in your credit score
Recognizing these red flags early can help you minimize damage in case of identity theft.
Conclusion
As credit card companies move toward paperless billing, consumers need to stay informed about potential fees and the impact on their finances.
If you’re facing similar challenges or are concerned about the new charges, consider exploring ways to adjust your billing preferences or discussing your concerns with your credit card provider.
Staying proactive about your financial health can help you avoid unpleasant surprises down the road.
