Customers eligible for the fee will begin payment from June 1st on the card, which offers a lower credit limit than Morgan Stanley’s Platinum product.

Nevertheless, Morgan Stanley customers will be paying less than credit card customers with the Co-operative Platinum Visa or Northern Rock Base Rate Visa cards.

Both groups had £24 yearly fees, paid in £2 monthly instalments, introduced on their cards earlier this year.

Many card providers say they need the fees to make up for the revenue they lost when the OFT set an upper limit on default payment charges just over a year ago, uSwitch.com’s personal finance campaigner Mike Naylor commented.

And Morgan Stanley’s move may herald the introduction of similar fees by other providers over the coming months, Mr Naylor warned.

Meanwhile, HSBC has introduced two new zero per cent interest credit card deals in what may prove a timely reminder to customers to look again at their options.

Find out more about Morgan Stanley credit cards

© Adfero Ltd