Discover has sent out a letter to cardholders informing them that fees will be increasing on July 1st. Fee changes are as follows:
- 3% balance transfer fee will increase to 5%. You can opt out of this, but by doing so you’ll no longer be able to do a balance transfer.
- Late fee. First late fee will still be waived, second late fee will be $28 if you have not been charged a late fee during the prior six billing periods. Otherwise the fee is $39. Currently your first fee is waived and then it is $37.
- Return payment fee. First returned payment fee will still be waived, second late fee will be $28 if you have not been charged a returned payment fee during the prior six billing periods. Otherwise the fee is $39. Currently your first fee is waived and then it is $37.
They also provided some additional clarity on definitions and a few other things. You can read the full letter below
Our Verdict
Hopefully for all readers these changes to fees will make no difference, as you should be paying off your credit cards in full anyway. They are actually reducing fees if you only forget to make payments infrequently, but fees are increasing for those who are habitually late.
Hat tip to reader Brad
