What is a balance transfer fee?

A balance transfer fee is a charge incurred when transferring a balance from one credit card to another. This fee is typically a percentage of the total balance being transferred and is typically assessed by the institution that is receiving the balance. In Washington, balance transfer fees on credit cards are regulated by state law. Under Washington State’s 2008 credit card law, banks and credit card companies are limited to charging a balance transfer fee of no more than 5% of the amount being transferred. The law also restricts the maximum fee to no more than $50 per transfer. Consumers must also be informed in advance of the amount of the fee before a balance transfer is completed. The balance transfer fee was created to offset the costs associated with allowing consumers to switch balance from one card to another. This fee is an important part of the credit card industry and helps to ensure that financial institutions are able to recoup costs associated with allowing customers to transfer their balances. Balance transfer fees are just one of many fees associated with credit cards. Understanding the different fees associated with credit cards can help consumers use them more responsibly and manage their debt more effectively.

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What is a balance transfer fee?

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