THE cost of using a credit card is increasing as providers use a range of charges to make money from customers.

The Office of Fair Trading (OFT) said last year that credit card companies must cut the penalty fees they charged customers to a maximum of £12.

But Which? says since then other fees and charges levied on customers have "notably increased".

Some credit card providers have introduced annual fees of up to £24 a year, while the amount charged to people transferring a balance from one card to another has risen from a typical two per cent to as much as three per cent.

The group claimed some providers had also reduced the minimum repayments people had to make so that those who only repaid the minimum each month paid more interest before they cleared their balance.

Others have changed the order in which repayments are made, so that people pay off debt that they are paying the lowest interest rate on first, before debt on which they are being charged higher rates is reduced.

Which? said some providers had introduced low usage fees, charging people who did not use their card regularly penalties of up to £35, while others fined consumers up to £12 for failing to inform them of changes of address.

The group added that some cards now charged higher interest rates and fees for cash withdrawals, and some providers even treated the purchase of vouchers as if they were cash withdrawals, on which interest rates are higher.

Editor of Which? Money Martyn Hocking said: "Credit card providers seem to be resorting to a raft of ingenious methods to recoup lost revenue following the OFT crackdown on penalty fees."

He urged people to check the small print and make sure they knew which charges applied to them.

Spokesman for Barclaycard Ian Barber added: "We've actually reduced fees on six of our cards in the last year. We haven't increased in the areas that Which? highlights.

"I'm not aware of more than two cards in the industry that charge annual usage fees. Which? is right selectively with its report but Barclaycard has reduced its APR in the last six months and there are still great deals out there for customers."