How are balance transfer fees assessed?Balance transfer fees are simply added to the amount being transferred, which means you don’t have to pay them right away. You might therefore be wondering why it’s called a balance transfer “fee,” after all.
Credit card companies call it a fee to preserve the advertised balance transfer APR. You see, there is no fundamental difference between a credit card that offers a 0% balance transfer APR for six months and charges a 3% balance transfer fee and a credit card with no balance transfer fee that has a 6% transfer APR, but the 0% offer seems more appealing. Interest and transfer fees are both considered finance charges from a regulatory standpoint, and the distinction is therefore merely marketing-based.