These will be periodically posted regarding things people don’t question or think about but things that make you wonder “why is it like that?”
Today: Credit card activation fee occurs at the time when the back-office “Activates” the card. The consumer could get the credit cards months later (as was the case for me).
So theoretically, the fee you are paying for up until you can actually use the card is free money for the credit card company as you have not actually received a service and even if the fee is “waived” (to think you are paying a fee to pay them interest on money they lend you) you get billed for next years fee at the same time.
The lapse in time between activation + actually being able to use it is usually two weeks. It was 1.5 months for me for my TD Visa which meant I also would have half the time to earn the “bonus welcome miles” and (not a big deal) but also $18 in loss because of the $149 yearly fee, which comes to about $12 a month. Even if the fee for the first year is waived, making your first year free, if you get billed within 12 months of the activation date, you actually aren’t getting the first year’s fee waived.
Luckily, it just so happens that their systems are incapable of actually changing these dates or issuing credit if the card is delayed.