Hidden Fees Alert: How Credit Card Companies Are Charging You Without Warning: Credit Card Fees Under Fire - How to Avoid the $1.99 Paper Statement Charge

Two major credit card companies are facing backlash for quietly imposing a $1.99 fee on consumers opting for paper statements. In a push to encourage customers to switch to digital statements, these companies are penalizing those who still prefer traditional paper billing. However, there are ways to avoid this fee—by opting into electronic statements or contacting your card issuer for potential exceptions.

The Shift to Digital Statements and the $1.99 Fee

Credit card issuers, including Synchrony Bank and Citibank, have introduced this fee for customers who choose paper statements instead of going digital. Synchrony Bank, which offers more than 100 co-branded and store-affiliated credit cards—such as Sam's Club Credit Card, Lowe's Store Card, and Amazon Store Card—is one of the key players imposing the charge. Citibank followed suit in late 2022, requiring customers to switch to paperless billing to access their accounts online or through the Citi Mobile App.

Despite the shift, legally, credit card companies must still offer paper statements, but customer consent is required for paperless billing. Many customers, like Alicia Galowitsch, find themselves facing additional costs. "It's very tight for us," she told NBC, explaining how these fees have impacted her household finances. "We had to start going to a food bank. It’s going to be $11.94 [in fees]," she shared, highlighting how small fees can quickly add up for families managing multiple accounts.

For some, paper statements are essential for organization, particularly when managing multiple credit card accounts. Ms. Galowitsch added, "If I'm not here, the payments are going to be late because [my husband] Mark's not going to know what to do." For people who rely on paper statements to stay organized, these new fees feel like an unfair burden.

Related: Should I use my credit card for big purchases?

Growing Consumer Frustration and Security Concerns

Beyond the financial strain, many customers are also concerned about the security risks associated with digital statements. Those who aren't comfortable with online banking worry that going paperless could leave them vulnerable to fraud. In response, frustrated credit card holders have taken to forums like Reddit to voice their discontent.

One Reddit user shared, "I received a letter today about my PayPal Mastercard. Starting in April, they will impose a charge if you don’t opt for electronic statements." The fee in this case is $2.50—slightly higher than Synchrony’s—but still a source of frustration. Another user mentioned they were closing their account entirely due to the fee.

This latest wave of fees follows recent changes by credit card giants Visa and American Express, which subtly reduced the value of rewards points. With Americans sitting on millions of credit card points for flights, hotels, and cash-back options, the impact of inflation has caused these points to lose value. Once worth roughly one cent per point, their purchasing power has dropped by 20% since 2018, according to data from the Bureau of Labor Statistics.

How to Avoid the Paper Statement Fee

If you're being charged for paper statements, here's how you can avoid paying unnecessary fees:

  • Switch to electronic statements: Opting for digital billing is the simplest way to sidestep the fee.
  • Request an exception: In some cases, particularly for elderly or disabled customers, credit card companies may waive the fee upon request.
  • Track your statements online: Even if you prefer paper, familiarizing yourself with online banking can help you stay on top of your finances.

Signs Your Credit Has Been Compromised

Amid concerns about switching to online statements, it's crucial to keep an eye out for signs that your credit may have been compromised. According to Michael Bruemmer, vice president of Experian Global Data Breach Resolution, these warning signs should not be ignored:

  • Unrecognized charges on your credit card or bank account
  • Unexpected credit checks appearing on your report
  • Receiving unfamiliar bills
  • A sudden drop in your credit score

"If you notice any of these, it could be a red flag that someone is using your identity," Bruemmer warns. Early detection is key to minimizing potential damage to your credit.

Conclusion

As credit card companies push customers toward digital billing, it's important to stay informed about fees and how they can impact your finances. Whether you're holding onto paper statements for organization or security reasons, knowing how to avoid fees can save you money. Stay vigilant about your accounts, and keep an eye out for any signs of fraud to protect your financial health.