TD Visa (and other Mastercards): Overlimit Fees & Avoiding Them

I got hit with an overlimit fee on my TD Rebate Rewards Credit Cards

I'll say that these fees are a bit sneaky.

The cards give you a "credit limit", then they let you surpass that limit, and charge you $20 for it. So much for it being a limit. 

Say your limit is $500. If you've so far spent $475, and then make a purchase for $26 (putting you at $501), TD will allow the purchase to go through and charge you a $20 overlimit fee, rather than decline it for being over your limit. Future purchases past this $501 figure will be declined (I think), so you can still end up in a "stuck" situation. The overlimit fee can only happen once per statement (for TD Rebate Rewards anyway)

Wouldn't you expect them to decline the payment, if it was over your limit? Now, I was aware of overlimit fees, but I thought they only came into play, if, say, interest charges pushed you over the limit (ie: they're forced to provide you credit past the limit), I didn't think the bank would let me get into this situation in the first place. 

Many banks do this, so read the fine print. Some charge it only if you're over your limit at the time that your credit card statement is printed. So, if you know that you've gone over the limit before that time/date, you can make an early payment and be in the clear.

Other banks, like National Bank and Desjardins, don't charge overlimit fees at all (I guess they just decline the transaction) according to this Government of Canada document comparing cards. 

What I did about the credit card overlimit fee

First, I called TD, at the 416 number, instead of the 800 number, so I don't wait in queue or go through the IVR, it just rings and then takes you straight to a CSR :) After explaining how dumb the overlimit fee was, and them trying to explain it to me, they finally got the message when I mentioned the words "Then I guess I'll have to cancel this credit card". It would probably be a good idea to outright ask for them to waive it, as a special favour, and if they don't, then request that they cancel your card. I was indeed willing to cancel the card if they didn't budge. If that doesn't work, feel free to bring up other accounts that you may have at TD that could be switched over. I have a feeling that they tend to review telephone calls that CSRs take when there's an account cancelled (and credit cards ARE a profitable business), so they're sure to be on their best behaviour once they realize there's a chance of cancellation(s).

So, I was able to get the overlimit fee credited (on my next statement), and I changed my credit card account so that it won't allow me to go over the limit in the future.

Overlimit Fee Summary

  1. If you go over your limit, by all means call in to see what can be done about it
  2. If you always have a backup credit/debit card, call your credit card company and tell them to not allow transactions that would put you past your credit limit 
  3. Research other Visa and Mastercard Credit Cards that have better overlimit fee terms and other terms.

ATB charges via MasterCard a

ATB charges via MasterCard a whopping $30.00 penalty for over purchases , it off and cancel are my plans,...

advice doesn't work (sadly)

I also was charged an overlimit fee by TD bank after having gone over my limit for only a matter of days, before even receiving my statement and with no warning from the company. The frustrating thing is I had called them a year before and asked them to enforce the limit on my card. The opperator told me my card would only go overlimit if I had pre-authorized payments. After being charged this fee, I called to complain and they told me I had been previously mis-informed and that the charges would stand. I did cancel my card. TD's reaction was "go ahead and cancel." So I did.

How can a bank ignore an agreed-upon limit and then profit from it? Amazing that a practice like this could be legal.

It's not a huge loss, there

It's not a huge loss, there are better cards out there.

I suppose a better method would be to ask first, and then if they refuse, cancel your card. I'll amend my instructions.

all big banks are the same, SCAM!!!

it happened to me at Scotia, they charged me twice for same month period and only agreed to cancel once, so I canceled my Scotia card.

today same happened to my TD card, so I did a search and found that in US, you can choose not to opt in for over limit transactions, but its' not available in Canada, what a shame!!!

so I called BMO, where i have anohter credite card, asking them I would like to opt out for the overlimit transaction, the CSR later said they can't, my only option is to check my account hbalance if it's close to limit. seems the money is too easy for them to make.

I'm still on call with TD and pretty sure they will give me same shit.. why no one has complained this to the government. this is totally scam, why we are not given the choice to reject the transaction if it's over the limit...????

btw, your government of canada link is broken, so can't find banks that don't charge overlimit fee, also, i called TD 416 numbers, still ask me to hold a long time....

Don't change your URLs. Desjardins has no over-limit fee.

And all I have to say to the Government of Canada is: Cool URIs don't change.

On the plus side, the government now has a fancy Credit Card Selector Tool at
But the sum up the results, seemingly ALL credit cards charge an over-limit fee EXCEPT Desjardins. You also don't have to be a Quebecker to get a Desjardins credit card. Check out my review of Desjardins Credit Card offerings here.

I'm sad to see that the 416 trick isn't working anymore :(

im with RBC and I was under

im with RBC and I was under the impression that a credit card limit is just that.. A LIMIT WHICH YOU CAN NOT PASS????? But apperantly a credit card limit is just a sneaky way of taking more money from you. Im disgusted. From now on I refuse to use my credit card.

Scotia Scene

I had the same problem with a scotia scene visa card. I didn't get any warning saying i was near my limit and when i looked at my bill there was a 25$ overlimit fee. i was quite upset. I also figured it would just come up declined. Banks really are scamming people and it should be addressed!

Received Credit for overlimit fee

As the poster says, just call the 416 number and explain that you were not aware that it would over charge you if you went over and you thought it only happened when you incurred interest. (This is actually what I was told by the teller when I applied for the card). I spoke to a gentleman (Naveen) who said he would cred. my 20 dollars. The phone call lasted no more than 3 mins. Since I always pay my bills in full and on time I had no trouble trying to convince him or anything. Just call and explain your situation.

The consumers should not tolerate this overlimit fee

I was furious when BMO mastercard charged me $25 overlimit fee. When I called, the agent I spoke to told me that some merchants have an agreement with Mastercard to allow them to charge over the limit, while others do not. This sounds like a complete bull*. Basically, it is a bank scam, and customers should not tolerate it. We should all write to our MPs and have them draft a bill to limit banks from charging this outrageous fee. It is outrageous because the bank does not inform you that you are over the limit when they charge you the fee, even though it is perfectly feasible for them to provide you with this information at the point of purchase. That is, the bank, before charging you the fees, could have informed you, the customer, that you are above to go over the limit, and if you wish to continue with the transaction, an overlimit fee will be charged to your account. The fact that it is within their ability to do so and they choose not to do so indicates to me that they are being "sneaky" -- in other words, it is a scam, and should be made illegal. We stop all do something to stop this!

Have experienced the same

Have experienced the same problem with my td visa card. the problem is that even td customer service line doesnt know when and why it at times allows to go beyond limit. I think that a large bank has made this kind of information not clear upfront by hiding it in the fineprint and not being able to offer reasonable explanation for why it is occurring is something regrettable. I will be cancelling my card as a way of expressing my dissatisfaction.

I don't know what's going on.

I have had a TD Classic Travel Visa for almost a year now and I have been always paying at least the minimum every time they send me a bill. I picked that card because I am currently studying in France and I figured that it could bring me some travel points. I have a limit of 500$ (which is nothing in Europe by the way) and every time I would try to buy something that costs say 30$, and my current balance was at 471$, it would automatically decline the purchase. Recently, I decided to make a trip back to Canada and figured I should use my TD Visa for the points. I called Visa so that I can bring up the limit to 1000$, they refused. I didn't mind seeing as how I'm a student and every time I pay their bills, it's more often than not the minimum being paid. Suddenly, I decided to try and use my card to buy some books online. I knew that I was dangerously close to the limit but I tried anyways. I don't understand how but it went through (oddly the day after the call to increase my limit). I thought maybe they pulled some strings and let me have my increase in limit so I checked online, now I have 0.00 available credit and I owe 536$ (the book costs 12$). To see if it would work again, I used my Iphone to buy a cheap 0.99$ application, It went through as well. I don't know what is going on but it's tempting me to buy these expensive glasses that costs 250$ and see how they would react.

Td visa outrageous overlimit fees and non compliance

I have a td emerald visa card all was well when I paid the balance in full every month. Then I became ill and gradually hit my limit on the card, paying only the minimum balance and payment to free up credit to allow bill to be paid.
Prior to this period if I made a purchase that was over my limit the card would simply decline, and if I made an online transfer to the card to free up credit before a purchase I had no problems. The payment was processed before the debit purchase was made. Now for the last five months i can not get an accurate available credit balance online, postings and transactions are not up to date, visa has in my opinion deliberately posting debits to the card which put me over my limit even when I have made the transfer payment first to cover the debit transaction. I have called them several times a month spent hopurs on the phone ,requested that my card is declined at its limit to avoid the $20 overlimit fees, and was promised they would honor my request. B.S !!! I'd get off the phone post a payment, then later that day make a purchase(even for less than the payment0 and Visa will put the transaction thru before the payment and put me over my limit and charge me interest, over the limit fees, again.Vampires!!

I just got into the same

I just got into the same situation actually with my rebate td card.And I told them if they can credit my $20 back since I knew that you got your money back that way.And they said yes.Woo HOOOOOOOOOO

Canadian Credit Card Company Scams

I had an over limit fee with a HSBC Master Card $20.00 last year; after a lengthy discussion HSBC reversed the charges and started declining any transactions over the limit. Recently, HSBC charged me $29.00 and refused to reverse the charges. I cancelled the credit card and refuse to get another. I got a credit cad out of a Bahamian Bank, no service charges and great service, it seems Canadians need to do more business outside our country to get treated in a reasonable manner.

Bahamas Credit Card?

I'm not really sure how a Bahamian credit card will help things, as far as I know, two of their main banks are branches of Canadian ones. Care to share which bank you got it through, or how you did so? It would be a nice alternative, unless they nail you on currency exchange fees (their currency is pegged to the US$)

CIBC visa credit limit

I am so angry.

I have been a CIBC customer for 30 years. I have never been charged an over limit fee on my visa UNTIL LAST MONTH!

I have been a great customer almost always paying my bills on time. Last month, I forgot and got this $20 cver limit fee charge. I was so mad that I threatened to cancel the visa card. They did not offer to credit that $20 so I no longer have a CIBC visa card.

Good riddance.

Any advice on a new visa with customer satisfaction?

Well, I guess I had a better

Well, I guess I had a better experience with my TD card. Also, take a look at that government of Canada document I linked above, it looks like some of the cards don't even have overlimit fees (but check the fine print to be sure).

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