Credit Card Issuer Annual Fee Rules
We get a lot of questions and a lot of interest in annual fees and the rules relating to them. This post features the annual fee refund rules and timelines for the major credit card issuers. You’ll notice there are two different dates mentioned in several of the rules and the distinction is important: posting date compared to statement date. (I’ve elaborated on the distinction in the conclusion.) Also, there are two types of refunds mentioned, a prorated refund and complete refund. Prorated is simply an amount based on the number of months remaining.
In addition to this resource, we have a number of other quick reference guides available:
- Credit Card Reconsideration Strategies When Calling In Fails
- Multi-Bank Guide Reconsideration Phone Numbers
- Resource: Hotel Point Expiration Policies By Loyalty Program
Annual Fee Rules by Issuer
You must close or downgrade your card within 30 days of the statement closing date in order to receive a full refund of the annual fee. Thereafter, the only way to receive any type of refund is to downgrade and receive a prorated refund.
Bank Of America
It doesn’t appear they have any sort of fast and true policy in place. It will depend on your banking history with them. If you have been a good customer and don’t have a late payment history etc. they will generally reimburse you for around 30-45 days after it posts. So you usually will have one statement period.
You will receive a full refund of your annual fee if you cancel within 60 days of the date the fee is charged to your account.
According to Doc, you have 30 days to cancel to receive a refund.
In order to receive any type of refund you must cancel the card within 30 days of the statement date in which the annual fee posted.
In order to receive any type of refund you must cancel the card within 60 days of the annual fee posting.
You will receive a full refund of your annual fee if you cancel within 30 days of the date the fee is charged to your account.
If your account is closed within 90 days of the annual fee being charged, the annual fee will be refunded.
As you can see from the policies above, it’s important not to wait too long before you cancel your account once your annual fee has been charged. Many issuers are willing to offer retention offers in exchange for you keeping the card open, so it’s always worth a shot to call first.
Posting date is the day the annual fee is charged to your account and the statement date refers to the date of the statement reflecting the period in which the annual fee was charged to the account. For example, if your statement dated January 19th is for your account activity from December 16-January 16 and your annual fee is charged on January 15th, the posting date January 15th, but the statement date would be January 19th.