When cardholders’ purchases exceed their credit limit, credit card issuers impose an over-limit fee as a punishment. When a customer made a purchase that exceeded their credit limit, credit card issuers used to deny the transaction; now, they allow the transaction to go through but charge a fee. Since the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act was passed in 2009, this practice has ended.

When credit card user exceeds their credit limitations, they are assessed an over-limit fee.

Previously, businesses could choose the magnitude of their over-limit fines, but they are now only allowed to charge up to the amount that was exceeded.

In order to be able to go above their credit limit and incur over-limit costs, clients nowadays must “opt-in.” Over-limit fines have all but vanished since the CARD Act was passed.

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