Banking

Credit Card Overlimit Fee Charged

Charging a fee when a cardholder's balance exceeds their approved credit limit.

Account NameTypeDebit ($)Credit ($)
Credit Card ReceivablesAsset (+)25.00-
Overlimit Fee IncomeRevenue (+)-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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