What is the Misused Authorization Fee?
The Misused Authorization Fee is a fee applied when a cardholder misuses the bank’s authorization service. This includes when a cardholder has purchased goods from an unauthorized merchant or when they have made too many payments to one biller in a month. The bank must apply this fee to cover its costs, and prevent misuse of its services.
What does the Misused Authorization Fee cover?
The fee is not an interest charge. It covers expenses, for example, related to processing a payment or contacting the customer over possible misuse of the authorization service. The fee also covers actual costs incurred by us when we reimburse other banks for payments made because you do not have sufficient funds in your deposit account or when you exceed your credit limit.
What are the Misused Authorization Fee rates?
The Misused Authorization Fee is 0.50 SEK per fee applied, with a minimum of 2.00 SEK and maximum of 10.00 SEK per month. If there are more than 10 occurrences in a one-year period, we will not charge the fee for the remaining occurrences within the 12-month period.
When is this fee applied?
The Misused Authorization Fee is applied when you use your debit or credit card at a Swedish store without having enough money in your account to cover it. We are entitled to charge this fee if you have made up to three payments to the same biller within a period of 30 days without having enough money in your account to cover the payment. We might also charge you for any additional occurrences after this time frame.
How can I avoid being charged?
If we suspect misuse of the authorization service, we will contact you so that you know what has happened. You must then contact us to find out more about how we process the payment of your debit or credit card, and what you can do if you suspect misuse of the authorization service.
How can I find out if a Misused Authorization Fee is applied?
The first time we apply the fee, you will receive a text from us informing you of this. You will not be charged for any further fees during the next 365 days. If we have not been able to inform you of a possible misuse of an authorization service via text, we will send you a letter.
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