When we use a credit card issued by any bank or financial institution, we usually pay an annual fee or renewal fee. This charge, in most cases, is justifiable. It compensates the bank for providing year-round services related to card management, including security features, system maintenance, staffing costs, and establishing and maintaining the infrastructure for ATMs and POS (Point-of-Sale) terminals. These are essential components of the card ecosystem, and maintaining them requires substantial investment.
Moreover, credit card charges often vary based on the credit limit, card type, and privileges offered. Premium cards with higher benefits naturally come with higher fees, which users may accept as part of a value-added package.
However, in my opinion, one of the most frustrating and unjustified charges imposed by many banks is the fee for transaction or SMS alerts. While receiving real-time alerts for card usage is a vital security measure and a transparency tool, I believe that charging customers extra for this essential service seems both illogical and excessive, especially when the user is already paying a significant annual fee.
Many reputable banks and financial institutions impose this SMS alert charge without clearly informing the customer or offering an option to opt out. This lack of transparency erodes trust and raises concerns about customer exploitation. On the brighter side, a few banks do waive this fee or offer it free of charge under specific conditions, and such practices should be recognized and encouraged.
Unfortunately, many institutions appear to prioritize excessive profit-making over customer satisfaction. By introducing and layering multiple fees—some of which are hardly justifiable—they are effectively burdening cardholders in the name of premium service. This trend is not only disappointing but also raises ethical questions about the banking sector’s approach to consumer rights.
As responsible customers, we have every right to question hidden charges, seek clarification, and demand transparency in billing practices. Annual fees and service charges should be fair, clearly communicated, and based on the actual value delivered—not a blanket policy for revenue generation.
The banking sector must realize that long-term customer loyalty is built on trust, fairness, and openness not just on profit margins. Moving towards more transparent, customer-centric policies is not just good ethics it’s good business.