Banks have a right to charge annual fees for credit cards, and waivers are not a given

In response to a letter writer who questioned if banks should continue to charge annual fees for credit cards given that most will accede to customers’ requests for waivers, readers mostly agreed that it is a hassle having to ask for a waiver but noted the banks have a right to charge such a fee to cover their costs. Others added that some banks can be strict in granting waivers.

It’s not about the money, it’s about: 1. Compulsory contact. They’re forcing you to contact them so your mindshare remembers them as your bank. 2. Gratitude. Makes you feel grateful that they’re giving you a waiver. The banks' behaviour reminds me of insecure and possessive spouses, hahaha. (I'm a divorce lawyer) GENESIS SHEN

Banks do not earn from customers with zero or minimum activity on the card. The base cost of providing the card is already S$100 per annum (statements, rewards, card replacement etc) therefore they have to cover back the base cost at least. It is a bank for a reason and not a charity. Not siding with the bank but just felt that once you sign the application you are obliged to follow all the terms and conditions. CHANDRA LIM

Who says it’s normally granted? Mine was being declined and I paid S$160 for the annual fee for OCBC card... seems like for waiver, they don’t take into consideration the promptness of the payment and not owing money to them... but rather it’s the amount you spend per year. IRENE GILENE GOH

Agree. Such a waste of my time putting me through layers of auto voice recorder. TOH ONG

It’s a waste of time to get customers to phone in for waiver ... banks make money through the use of credit cards.. there should be no annual fees at all ... nobody will pay for such fees when the benefits are one way ... the more we use, the more they profit.. having a credit card was once a ‘status’... today it is the bank’s market reach. So it should be free, no annual fee. TL OON

It all depends on how much you spend. If you don't meet their "ideal" minimum spend, sorry "no waiver" and they won't bother to change your mind even if you want to cancel your card. TAN LING CHUI

There will be customers who are too busy to notice the fee charged to their bill, especially the get huge bill each month. If they don't notice the fee, naturally they don't call for waiver and banks get to earn extra money in the process. IVAN HO HIN WENG

They are entitled to charge a fee. Waiver is at each bank’s discretion, not “automatic”. One bank doing it willingly doesn’t mean others have to follow suit. Each card has their own services and benefits. JON WAN

Because they want you to acknowledge they're doing you a favour. AMY LAW

I would only pay for the annual fees for cards that I use, and cancel those cards that I don't. I think it is fair to pay for usage. Besides, card companies have invested millions in giving back value to their cardholders, so it is a fair exchange. If one cannot afford to pay the annual fee, the bank have the right to terminate the services. SHAO WEI LI

If you miss it and didn't know that fee can be waived, the bank makes money. If you knew that fee can be waived and request for waiver, you will feel grateful and spend more. FRANCIS ALAN

*Comments were first posted on TODAY's Facebook page. They are edited for language and clarity.