Status: checked against official sources; automated independent review
FREQUENT FLYER GLOSSARY
What is an annual fee waiver?
An annual fee waiver is a card term under which the issuer does not charge the card's yearly account fee at all, whether the product is permanently fee-free, the first year is waived, or a spend condition removes the fee for a set period. It differs from a statement credit, which offsets a fee that has already been billed: with a waiver the fee never appears on the account. Issuers set waivers out in product fee lines and offer footnotes, and the terms differ by market — American Express lists the first year of the American Express Preferred Rewards Gold Credit Card in the United Kingdom at a £0 annual fee before £195 applies from year two [1], while Commonwealth Bank of Australia removes a monthly card fee when a spending target is met [3].
Facts checked: 18 October 2026
Key takeaways
- A waiver is a decision not to charge the fee, not a refund of one already billed: American Express shows £0 in the first year on the Preferred Rewards Gold Credit Card, then £195 from year two [1].
- Some products carry no annual fee for as long as they are held: the British Airways American Express Credit Card, the Amex Cashback Everyday Credit Card and The American Express Rewards Credit Card are listed with no annual fee [1].
- Waivers can be conditional and time-limited: Commonwealth Bank of Australia drops the monthly fee on its Smart and Ultimate credit cards when a spend target is met, and says the spend-based waiver ends for statements issued on or after 1 January 2027 [3].
- A waived fee can also change the card's other benefits, because some credits are issued only for periods in which the fee was charged [3].
What forms can an annual fee waiver take?
A permanently fee-free product. American Express says some of its cards have no annual fee, and it groups products under the heading "No Annual Fee Credit Cards" [1]. Three products carry "No annual fee" in the fee line on its United Kingdom card pages: the British Airways American Express Credit Card, the Amex Cashback Everyday Credit Card and The American Express Rewards Credit Card [1]. Fee-free status belongs to the individual product rather than to the issuer, because the same pages quote The Platinum Card at a £650 annual fee and the Marriott Bonvoy American Express Card at £95 [1].
A first-year waiver. The American Express Preferred Rewards Gold Credit Card is listed at a £195 annual fee with £0 in the first year under an offer [1]. The issuer's note says the first year of Cardmembership is at a £0 annual fee and that from year two the £195 fee is charged automatically to the account on or after the anniversary of the account opening date [1]. American Express also says it charges an annual fee once a year starting on the date of the first statement, unless it tells the cardmember otherwise [1].
A nil fee line in a monthly billing model. Barclaycard, a trading name of Barclays Bank UK PLC, quotes its United Kingdom card fees monthly rather than annually: Barclaycard Avios is listed with no monthly fee, while Barclaycard Avios Plus is listed with a £20 monthly fee [2]. Both pages show the fee in the representative example as a monthly amount [2].
How do spend-based fee waivers work?
Commonwealth Bank of Australia (CommBank) applies a monthly card fee and waives it for a statement period in which the cardholder spends enough on the card [3].
| Card | Condition for a $0 monthly fee | Monthly fee when the condition is met | Monthly fee otherwise |
|---|---|---|---|
| Low Fee credit card | At least $300 of spend in the statement period | $0 | $3 |
| Smart credit card | At least $2,000 of spend in the statement period | $0 | $19 |
| Ultimate credit card | At least $4,000 of spend in the statement period | $0 | $35 |
The spend test counts purchases and cash advances made on the card minus refunds, for transactions fully processed within the statement period rather than pending ones [3]. The Smart and Ultimate fee lines state that after 1 January 2027 the monthly spend-based fee waiver will be removed and the $19 and $35 monthly fees will apply, and a footnote dates the change from the first statement issued on or after 1 January 2027 [3]. Separately, the CommBank Neo card carries no monthly fee for a statement period with no processed transactions where the previous statement closing balance is paid in full by the due date [3].
Does a waived fee affect the card's other benefits?
For CommBank, the reason for the waiver matters as much as the waiver itself. Travel credits on the Smart and Ultimate cards are issued only for a statement period in which the applicable card fee has been charged; where the fee is waived or not charged, no travel credit is provided for that period, except where the fee is waived by meeting the minimum spend requirement — $4,000 for Ultimate and $2,000 for Smart per statement period [3].
Dining credits follow the same pattern: a credit is received only where the card fee has been charged for the relevant period, it is still received where the fee is waived because the minimum spend requirement was met, and it is not received where the fee is waived or not charged for any other reason [3].
What limits apply to annual fee waivers?
- The waiver can revert automatically. The £0 first year on the American Express Preferred Rewards Gold Credit Card is a first-year offer; from year two the £195 fee is charged on or after the anniversary of the account opening date [1].
- A spend waiver can end on a stated date. CommBank states that its monthly spend-based fee waiver will be removed after 1 January 2027, with the $19 and $35 monthly fees applying from the first statement issued on or after that date [3].
- Waivers can be conditional on benefits. CommBank withholds travel and dining credits for periods in which no card fee was charged, apart from waivers earned through the minimum spend requirement [3].
- Separate offer rules can apply to the same card. The acquisition offers for the CommBank Smart and Ultimate cards are not available to customers who currently hold, or have held, certain activated card types in the previous 24 months as a primary cardholder, or who switch from another card type — conditions that sit alongside the fee waiver terms [3].
- Fee-free does not always mean an annual structure. Barclaycard expresses the fee as a monthly amount, so a £0 fee line there describes a monthly charge rather than a yearly one [2].
Frequently asked questions
Is the card fee charged once a year or every month?
It depends on the issuer and market. American Express says it charges an annual fee once a year starting on the date of the first statement, unless it tells the cardmember otherwise [1]. Commonwealth Bank of Australia applies its card fees monthly, per statement period [3].
How long does a first-year annual fee waiver last?
One year of Cardmembership on the offer described for the American Express Preferred Rewards Gold Credit Card; from year two the £195 annual fee is charged automatically on or after the anniversary of the account opening date [1].
Can an issuer remove a spend-based fee waiver?
Yes. Commonwealth Bank of Australia states that from 1 January 2027 the spend-based monthly fee waiver on its Smart and Ultimate credit cards will be removed, and the $19 and $35 monthly fees will apply from the first statement issued on or after that date [3].
Do travel credits continue if the fee is waived?
On the CommBank Smart and Ultimate cards, travel credits are issued only where the card fee has been charged for the statement period, with an exception where the fee is waived by meeting the minimum spend requirement; a waiver for any other reason means no travel credit for that period [3].
Sources
Sources checked on 18 October 2026. Cards issued by other banks, American Express products outside the United Kingdom, and airline and hotel loyalty programmes are not covered here; see the glossary for related terms.
- American Express UK credit cards and card fee notes, checked 18 October 2026
- Barclaycard UK credit cards and representative examples, checked 18 October 2026
- Commonwealth Bank of Australia credit cards and fee footnotes, checked 18 October 2026