What is a balance transfer fee?
A balance transfer fee is a charge imposed by a credit card company when you transfer a balance from one card to another. This fee is often a percentage of the total amount that you are transferring and usually ranges from 3 - 5%. In Oregon, the law states that a credit card issuer must make the balance transfer fee clear on the terms and conditions of the credit card agreement, as well as provide a clear explanation of what the fee is for. Any fees must be reasonable and not exceed more than the amount actually charged. Additionally, if a balance transfer fee is charged, the account holder must be informed of the fee when they receive their first statement after the transfer is complete. Balance transfer fees are typically used to cover the cost of the processing and administrative costs associated with transferring a balance.
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