Let’s start with the bottom line: credit card and bank fees are completely a “sucker’s game.” At the end of the article, I’ve written clear guidelines on how to handle the fee cancellation conversation with banks and credit companies, so you’ll approach it with high confidence. In the article, we’ll also discuss the reasons why I claim that banks and credit companies are willing to waive your management fees and charges. <\/p>\n
Banks and credit companies are the entities that safeguard our money, enable transfers, payments at businesses, installment plans, loans, and even investments. Without these services, our financial lives wouldn’t be possible. That said, there’s no reason to pay them more than the minimum possible, which in most cases is simply zero. <\/p>\n
Why?<\/strong> Because these entities don’t survive solely on the fees we pay. Banks earn mainly from granting loans, and credit companies also profit from loans (for example: “revolving credit,” “installment plans,” “credit payments”) and primarily from the money businesses pay them for the privilege of accepting credit card payments. In other words, the fees are really just a small addition to these entities’ profit centers. And since everyone wants you to be their customer, so they can continue earning from the services we mentioned, they’re willing to waive fees. <\/p>\n Supposedly we’re paying for the privilege of holding a certain credit card, or managing an account at a particular bank. In practice, there are fees because most people haven’t checked how much they’re paying and haven’t asked if there’s another way. <\/p>\n Bank fees and credit card charges seem negligible: 10 NIS here, 15 NIS there, a transaction fee of 1.65 NIS per operation. And cumulatively? Hundreds of shekels a year, sometimes thousands, for services you can receive at exactly the same quality without paying for them. The kind of payments I call “neglect tax” – payment for the mere fact that we didn’t cancel the payment, without any added value to our lives.<\/p>\n <\/p>\n Banks and credit companies are an integral part of our financial lives, but there’s no reason to pay them more than the minimum possible.<\/p>\n Many times we pay unnecessary fees, simply because we don’t understand what they are. By cutting unnecessary fees, you can save hundreds and even thousands of shekels a year! <\/p>\n How will you cut unnecessary fees quickly and wisely? – Keep reading <\/p>\n <\/p>\n First of all – don’t beg. Don’t threaten. Simply ask. We do this from an understanding that we’re desirable customers and we have alternatives. They know this very well. Many people are intimidated by the idea of “negotiation,” but a conversation about fees isn’t a confrontation, it’s part of the relationship with a service provider. In my experience, you might hear “no” in these conversations, and that’s okay. The answer turns to “yes” very quickly when it comes to customer retention… <\/p>\n This answer has two parts:<\/p>\n Canceling credit fees<\/strong> is very, very easy! So it’s definitely worth it even though you’ll only save about 200 NIS a year. You usually won’t encounter resistance either. There are only three companies competing for you – Isracard, Cal, and Max – and each of them has cards with and without card fees. If a representative refuses to cancel card fees on an existing card, ask them which cards they have with card fee exemptions, and request to open such a card. Immediately upon opening the card, you’ll be able to transfer recurring payments to the new card and cancel the old one. There’s even a short form you can fill out to move all recurring charges together from one card to another. <\/p>\n Canceling bank fees<\/strong> is a bit more annoying, mainly because banks count on you not wanting to start switching banks. But the savings potential is higher – hundreds of shekels a year. Fortunately, the “One-Click Portability” reform allows you to switch banks (with your standing orders, savings, etc.) very easily. Before the conversation with the representative, I warmly suggest arriving prepared with an offer from another bank for a fee-exempt account. If they tell you there’s no possibility to completely cancel the fees (not reduce! cancel<\/strong>!!), simply activate the one-click portability from the bank where you received a competing offer. In most cases, before executing the portability, your original bank will already get back to you and suddenly will be able to offer an exemption, and maybe even a refund on some of the fees you’ve paid in recent years! <\/p>\n <\/p>\n <\/p>\n You: “Hi [representative’s name], how are you? In many cases, you’ll already receive a card fee exemption here for at least a year. If the representative explains that it’s not possible, ask: <\/p>\n You: “I understand, in that case which cards do you offer today that are without card fees?”<\/p>\n All companies offer cards without card fees. If the representative says they don’t – they’re lying. And if they insist, politely end the conversation and switch to a competing company. There’s a short form you can fill out to pull standing orders and recurring charges from one card to another, request this form when you open a new card, fill it out – and you’re done! <\/p>\n You: “Hi [representative’s name], how are you? Here there’s a high chance you’ll encounter resistance. They’ll offer you a discount, partial exemption, a discounted plan. In my view, that’s not good enough. If the representative insists and doesn’t even offer a transfer to a fee-free plan at the digital branch – politely end the conversation and activate the “One-Click Portability” reform from the bank where you received an offer for a fee-free account. <\/p>\n At this stage, when the bank’s customer retention representative calls in a panic – you can already request a retroactive refund on the fees:<\/p>\n You: “I spoke with you a week ago and the representative didn’t respect my time, and said fees can’t be canceled. For me to feel comfortable staying, I’m also requesting a fee refund for the last three months.”<\/p>\n Tell me how it went! I’d love to hear success stories. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" What exactly to do to avoid paying unnecessary fees<\/p>\n","protected":false},"author":2,"featured_media":1125,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37],"tags":[],"class_list":["post-1126","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-getting-basic-order"],"acf":[],"_links":{"self":[{"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/posts\/1126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/comments?post=1126"}],"version-history":[{"count":0,"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/posts\/1126\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/media\/1125"}],"wp:attachment":[{"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/media?parent=1126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/categories?post=1126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neta.ussl.app\/en\/wp-json\/wp\/v2\/tags?post=1126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How is it possible that we pay tons of fees and don’t understand what for and why?<\/strong><\/h2>\n
How much money does this actually amount to?<\/strong><\/h2>\n
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What’s the principle here?<\/strong><\/h2>\n
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Why do I claim that fees can be canceled?<\/strong><\/h2>\n
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You’ve discovered that you’re paying bank fees, or card fees on your credit card. What do you do to cancel them? <\/strong><\/h2>\n
Is the hassle worth this little bit of money?<\/strong><\/h2>\n
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Step by step<\/strong><\/h2>\n
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With the credit company – this is how you’ll conduct the conversation:<\/strong><\/h2>\n
\nI saw that I’m paying card fees on the card ending in digits [XXXX].
\nI understand that today there are cards without card fees and before I switch I’d be happy to check if there’s a possibility to receive an exemption from the card fees I’m currently paying, so I won’t have to change cards.”<\/p>\nWith the bank – this is how you’ll conduct the conversation:<\/strong><\/h2>\n
\nI saw in the monthly SMS I receive that I’m paying transaction fees on the operations in my account. I checked with other banks [preferably actually give a specific name] and they’re offering today an account without fees [and sometimes also benefits for new members]. I’m a longtime customer of yours and I’d prefer to stay with you. What can be done to cancel the fees I’m paying with you?” <\/p>\n