Card Maintenance Fees By Bank
Card maintenance fees are one of the most common — yet least understood — bank charges in Nigeria. Many account holders notice small but consistent deductions from their accounts and often confuse them with transfer charges, VAT, or stamp duty. In reality, card maintenance fees are a separate category of banking charges applied for the upkeep and management of debit and credit cards. Is a periodic charge applied by banks for managing your ATM, debit, or credit card. It covers costs such as:
- Card production and replacement
- Payment network charges (Verve, Mastercard, Visa)
- Fraud monitoring and security systems
- Card transaction processing
- Customer support and dispute handling
Unlike transfer fees or stamp duty, card maintenance fees are recurring, meaning they are charged monthly, quarterly, or annually depending on the bank and card type.
How Card Maintenance Fees Are Charged in Nigeria
Nigerian banks apply card maintenance fees using different structures. The most common methods include:
- Quarterly Charges : Many banks charge ₦50 per quarter on naira debit cards. This amount may appear slightly higher when VAT is included.
- Annual Charges : Some banks bundle the maintenance cost into a single annual fee, especially for premium or foreign cards.
- Foreign Currency Card Charges : Dollar, pound, or euro cards usually attract higher annual fees, often charged in foreign currency. These fees reflect international processing and network costs.
- VAT on Card Maintenance : Where applicable, Value Added Tax (VAT) is added to card maintenance charges, which explains why a ₦50 fee may appear as ₦53.75 on bank statements.
Card Maintenance Fees by Nigerian Banks: Fees vary by account type and card category. Always check your bank’s official pricing guide.
Naira Debit Cards
- Most Nigerian banks charge ₦50 quarterly
- Some banks show this as an annual equivalent
- VAT may apply
Dollar / Foreign Cards
- Annual maintenance ranges between $10 – $20
- Charges are deducted from domiciliary accounts
- Additional international transaction fees may apply
Card Issuance & Replacement
- First issuance may be free on some accounts
- Replacement fees typically range from ₦1,000 – ₦1,500
- VAT usually applies
Do All Account Types Attract Card Maintenance Fees?
No. Card maintenance fees depend on:
- Account tier (basic, savings, current, premium)
- Whether a physical card is issued
- Card type (Verve, Visa, Mastercard)
- Bank-specific policies
Some student, salary, or entry-level accounts waive card maintenance fees entirely, while premium accounts may bundle them with other services.
Hidden Costs Linked to Card Usage: Beyond maintenance fees, cardholders may encounter additional charges such as:
- ATM withdrawal fees (especially on other banks’ ATMs)
- International transaction markups
- POS decline or reversal fees
- Card replacement and reactivation charges.
Read Also: ATM Withdrawal Charges Explained
How VAT Affects Card Maintenance Fees: Banks are required to apply VAT on eligible services. When VAT is applied:
- ₦50 becomes ₦53.75
- ₦100 becomes ₦107.50
This is why card maintenance fees sometimes appear higher than expected.
How to Reduce Card Maintenance Fees in Nigeria:While card maintenance fees are common, there are practical ways to reduce their impact:
- Choose the Right Account: Some accounts come with zero card maintenance fees, especially basic or student accounts.
- Avoid Unnecessary Cards: Multiple accounts mean multiple card fees. Consolidating accounts reduces costs.
- Use Digital or Virtual Cards: Some banks offer virtual cards with lower or no maintenance charges.
Are Card Maintenance Fees Legal in Nigeria?
Yes. Card maintenance fees are permitted banking charges as long as they align with regulatory guidelines and are disclosed in the bank’s pricing structure. However, banks are required to:
- Publish their rates clearly
- Notify customers of changes
- Apply charges transparently
Customers are encouraged to review bank statements regularly and request explanations where charges are unclear.
What You Should Know
- Card maintenance fees are recurring charges for managing debit and credit cards
- Most naira cards attract ₦50 quarterly, sometimes plus VAT
- Foreign cards have higher annual fees
These fees are separate from transfer charges, VAT, and stamp duty, Customers can reduce costs by choosing the right account and card type.
In Conclusion, Understanding card maintenance fees is essential for managing personal and business finances in Nigeria. While the charges may appear small, they accumulate over time — especially when combined with other bank deductions such as VAT, SMS alerts, ATM fees, and stamp duty.
By staying informed, reviewing pricing guides, and choosing accounts strategically, Nigerian bank customers can take control of their banking costs and avoid unnecessary charges.
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