Is Credit Card Annual Fee Pro-Rated if We Cancel?

Hi all, I signed up for NAB credit card a year ago to get some points offered.

I planned to cancel it closer to the anniversary of the card but I forgot to do it and just got charged annual fee of $195 few days ago. I just realised it when I was about to pay my bill.

My question: if I cancel it now, will the annual fee usually be pro-rated and I will get some refund? Thanks.


  • You could trying ringing it up and asking for it to be waived. Then cancel once you see it reversed.

    • On what ground usually (or the best strategy) I ask for the annual fee to be waived?

      • They only want one thing, amount of spend

  • Yes, thats what happens with anz anyway…

    • I tried that with ANZ years ago. That was before the anniversary of the card and they just happily cancelled my card without offering to waive annual fee. :-p

      • It probably depends on who you speak to.

        I called them 6 months ago and said that I thought that the card I had wasn't good value any more and that they could either refund my annual fee or I would cancel the card - they paid my annual fee back in advance (ie. it wasn't due for another month). I never pay any interest on that card either.

        I might do that again this year and just cancel it then if they say no.

  • +1

    What did ANZ say when you contacted them?

  • It should be in your PDS

  • +1

    Generally no, the annual fee is not pro-rata.
    If you've already paid the annual fee, then you ring to cancel it's possible they'll credit it back to you to keep you on.
    You'll then need to spend that credited fee and ring back a few days/weeks later to cancel.

  • My question: if I cancel it now, will the annual fee usually be pro-rated and I will get some refund? Thanks.


  • +1

    Very unlikely. Why would they refund you a fee when you plan to cancel your card? There is no benefit for the bank in that arrangement.

    • Because it's an annual fee charged in advance, so if you don't have one, they shouldn't charge it…or at least refund it.

      • Unfortunately there's a whole lotta things the bank shouldn't charge but they do!

  • Generally no.

    The fee is charged based on the provision of a credit card account on the day that the fee is charged.

    Though it is charged for the year ahead, I'd say that the fee would be non-refundable, or refunded as a credit at best.

  • Call them and ask, let us know

  • From my experience with ANZ if you have another credit card with them they will credit the annual fee onto the other.

  • Thanks for all your responses. I'll call them and let you know. Cheers.

    • +3

      That's what you should have done in the first place. There are no general rules; it's up to the provider.

      • +5

        Don't be ridiculous! 1st step is always post on OZB!

      • Yep I know that ultimately it is up to the provider … I just wanted to gather some more info so that I can build up better conversation on the phone. Cheers.

        • +2

          Nah, just bluff your way through it. E.g. My mate is with ANZ and they refunded him, I'm sure you can do the same.

  • They do refund if you cancel within 90 days of anniversary/fee pay date. Perhaps not all banks.

  • Call, ask them to waive or you will cancel. Likely scenario is they will put you through to the customer retention team. If the bank refuse, use your points or work out a deal. Sometimes they will offer partial refund if you keep the card. Lastly, reconfirm your annual cycle and put that date in your phone's calendar and set reminder to annual.

  • I have cancelled a few of my credit cards later than the anniversary of the card and the banks waived the annual fee.
    You can try to negotiate a better deal or lie to them that you are moving to their competitors and if they don't reduce or waive your fee you would not go further with their credit card. If they are smart enough, they would want to keep your business and give you some incentives.

  • Its a per annum fee hence should be pro-rataed. Best check your conditions as they are the governing factor.
    ut if you explain situation you should get whole amount back providing YOU HAVENT USED IT.

  • +1

    I've had the annual fee waived @ Westpac, ANZ, bankwest, amex if I called to cancel the card within 30 days of the annual fee posting.

    Hope you check your bills regularly… :)

  • +1

    Rang them. They would not waive the annual fee (which would be the best outcome for me) but they were happy to reverse the annual fee and closed my account (which is okay for me).

    So I have never been offered annual fee to be waived because the bank wants to keep me :-p

    • Well I suppose we should give you an OzB point for wishing for a better outcome than you originally hoped.

  • Yayyy this worked for me .. thanks

  • +1

    I closed my Westpac credit card, and afterwards phoned them to try to get the annual fee refunded, which was charged less than 30 days ago. They said that because I had already closed the credit card account, they cannot refund the fee. If I had not yet closed the account, they said that the fee would have been refunded. This is different to Commonwealth Bank, who in the same situation, refunded the annual fee.

Login or Join to leave a comment