Chase Balance Transfer Fees Climbing to Five Percent

Chase has begun to raise credit card balance transfer fees to as much as five percent on some of its credit cards, according to Bloomberg.

The move is the result of increased regulations and supposed costs related to new credit card rules recently signed by President Obama, set to go into effect in August.

Among the changes are the abolishment of universal default and negative payment hierarchy.

At that time, Chase will make a number of changes, including raising the fee for cash advances and making some fixed rates variable, likely anticipating a rise in the prime rate as the economy begins to repair itself.

The five percent balance transfer fee will be the highest in the industry, beating out Bank of America’s four percent fee, which was imposed in June to reflect higher costs.

Of course some card issuers, including Chase, don’t have ceilings on balance transfer fees, so a lower percentage with no ceiling could turn out to be more expensive than a higher set percentage.

For example, if you transfer a balance of $7,500 on a credit card with a three percent balance transfer fee and no ceiling, the cost would be $225.

Conversely, a balance transfer fee of five percent with a ceiling of $150 would limit your fees on a high balance transfer.

Unfortunately, many credit card issuers have eliminated balance transfer fee ceilings, so fees will likely be higher industry-wide (Check out existing no fee balance transfer credit cards).

Back in February, Chase raised minimum payments amounts and imposed a monthly service fee for cardholders who carry large balances without paying them off.

That fee was subsequently returned to most Chase customers after New York Attorney General Andrew Cuomo argued that the standard balance transfer fee should be the only fee related to the accounts.

Look for all the credit card issuers to become increasingly harsh as the new rules are implemented later this summer.

Related Topics:

1. Watch Out for Multiple Balance Transfer Fees
2. Chase to End Extra Fees for Those Carrying a Credit Card Balance
3. Watch Out for Hefty Balance Transfer Fees
4. Balance Transfer Fee Caps Disappearing
5. No Fee Balance Transfer Credit Cards