American Express and AIB's classic credit card carry the highest interest rate charges in the Irish market, according to a survey released today by the financial regulator.
The results show AIB and American Express levy a hefty 18.9 annual percentage rate (APR) of interest on purchases, almost double that of An Post financial subsidiary, One Direct, whose gold Visa card carries an APR of 10.9 per cent.
These variation in prices emphasise the need for consumers to shop around when choosing a credit card account, the Irish Financial Services Regulatory Authority (IFSRA) argues in its first independent cost survey on the market.
Consumer Director, Ms Mary O'Dea said: "Credit cards play an increasingly important role in the way people manage their money. There are a variety of credit card products available with different benefits so it is important that consumers know how to choose the credit card account best suited to their own particular needs. The results of this survey will help consumers to compare the products on offer."
People who pay their credit cards off in full each month are recommended to opt for an account with low fees and charges, while those who carry their balance forward each month are advised to look for cards with a low rate of APR.
Ms O'Dea explained: "Credit cards are a great way of paying for goods and services if you pay your bill in full and on time in each billing period.
Many cards give an interest-free period of 56 days, which means you can use your credit card and still not pay back the outstanding amount for several weeks without having any interest charged.
"It is when you regularly fail to pay your bill in full that credit cards become a costly item to have in your wallet."
Welcoming the IFSRA survey, the Irish Bankers' Federation said the 25 per cent increase in credit card providers means consumers now have a wide variety of choice in the market.
But it argued competition is stymied by the Government's €40 stamp duty on credit cards, claiming that cardholders can incur a stamp duty bill of €80 before even using a new account.