If a payment is late, which charge is commonly applied to the account?

• A. Annual fee
• B. Late fee
• C. Interest charge
• D. Balance transfer fee

Answer: (B)

Missing a payment by the due date typically triggers a late fee—the penalty charged simply for not paying on time. This fee is set in the account terms and can be a fixed amount or a percentage of the minimum due; it applies once the payment is past due. The other charges aren’t tied to lateness: an annual fee is a standing yearly charge for having the account, not for paying late; interest charges come from carrying a balance or losing a grace period, and while a late payment can sometimes affect interest behavior, the immediate penalty most commonly associated with lateness is the late fee; a balance transfer fee is charged when moving balances between accounts, not because a payment was late.