How to Avoid Extra Fees: Synchrony Bank’s New Paper Statement Charge Sparks Discontent Among Credit Card Users

Credit cardholders are now facing an additional fee of $1.99 if they choose to continue receiving paper statements. This new charge, introduced by Synchrony Bank—which issues co-branded credit cards for several major retail brands, including Amazon, Walgreens, American Eagle, Lowe’s, PayPal, and Verizon—has generated frustration and complaints across social media.

The Rising Cost of Paper Statements: Why Synchrony Bank Is Charging $1.99

In recent months, Synchrony Bank implemented this fee for printed statements, impacting customers who value paper statements for record-keeping or for managing their finances more effectively. While there are no laws prohibiting fees for paper statements, companies must secure customer consent before making the switch. For many, especially older adults or those on fixed incomes, the convenience of digital statements does not outweigh the security and accessibility of paper records.

Point Park University’s Professor Elaine Luther has raised concerns about potential risks with digital statements, pointing to data breaches and privacy issues. Moreover, low-income consumers might face barriers when relying solely on digital payment systems, such as access to reliable internet.

Real-Life Impact: A Fixed-Income Family’s Response to the Fee

For Alicia and Mark Galowitsch, a fixed-income couple with six Synchrony-issued credit cards, the $1.99 monthly charge quickly adds up to an unexpected $11.94 per month. Alicia explained to NBC Los Angeles that paper statements play a crucial role in managing their budget, especially when traveling. Her initial request to waive the fee was denied by Synchrony Bank, despite paying nearly $450 monthly in interest. However, after NBC intervened, the fees were suspended indefinitely for the Galowitsches, highlighting how these fees can have a real financial impact on customers who rely on printed statements.

Legal Insights: Is the Charge for Paper Statements Fair?

Chi Chi Wu, an attorney at the National Consumer Law Center, argues that charging for paper financial statements is unfair. Many consumers may overlook digital notifications for statements due to email overload or find accessing them inconvenient, especially if they lose passwords or encounter login issues.

Inflation’s Impact on Reward Points: Are Your Credit Card Perks Worth Less?

The discussion around Synchrony Bank’s new paper statement fee has also brought attention to a broader trend in credit card rewards: the declining value of points due to inflation. According to recent reports from The Wall Street Journal, reward points are losing value as inflation reduces purchasing power. For instance, customers who accumulated 50,000 points in 2020 might find them worth closer to 41,300 points today. This change demonstrates how inflation directly impacts the benefits associated with credit card loyalty programs, reducing the value of rewards over time.

How to Avoid Surprises on Your Credit Card Bill

As credit card companies look for ways to cover costs, customers should stay vigilant about new fees and charges. Keeping track of changes in loyalty points and fees can help cardholders maximize the value of their credit cards.