Banking
Credit Card Overlimit Fee Charged
Charging a fee when a cardholder's balance exceeds their approved credit limit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Credit Card Receivables | Asset (+) | 25.00 | - |
| Overlimit Fee Income | Revenue (+) | - | 25.00 |
💡 Accountant's Note
Overlimit fees are recognized immediately. Banks must clearly disclose this fee in card agreements. Some regulators limit or prohibit overlimit fees as a consumer protection measure.
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