Posted by William Charles on April 5, 2019
Credit Cards

Published on April 5th, 2019 | by William Charles

14

Discover To Change Fees On July 1st, 2019

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

 

 



14
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
Alys Holden
Alys Holden

never missed a payment before in 15 years of credit card stuff… everyone should pay in full on time

Master Allan
Master Allan

Happened to me once and on this discover card held for 20 years. Charged a large amount during a charge cycle for a quarterly promotion and paid some of it off quickly. The statement closed. Charged much more and made another early payment. When a 2nd statement closed there was an interest charge of about $1. With all high volume payments and transactions I miscalculated and underpaid the 1st statement by a small amount. Decided not to draw attention to myself by calling a CSR and asking for a courtesy credit.

Gadget

That’s not a fee. That’s interest. Very unlikely they would waive that, even if you called. I imagine most everyone has had an oops like that… Stacking a bill in the wrong stack, paying the wrong card, etc. It happens.

R
R

amex waive it for me once

Gadget

I said unlikely. Exception, not rule. Discover, not Amex.

Dave
Dave

No late fee ever for me, and have only paid interest one time.
That was on a store CC (possibly 1981, but can’t recall now)

JB
JB

I wonder why anyone would do a balance transfer to Discover at a 3% fee, let alone a 5% fee.

R McAllister
R McAllister

Here’s why I am considering it – but I am open to suggestions:
I have a $35K balance on another card that’s about to hit 18%APR, but Discover is offering me 0% interest for a year with 3% fee. I have great credit, but I don’t know of any new account promos that would give me that kind of limit at opening.

Ann
Ann

If you can get in at Navy FCU (just needs a family member up to as far back as grandparents to have been in the US military), they are known for large limits (maybe not that large) and frequent 0% promos. https://www.doctorofcredit.com/navy-federal-credit-union-0-apr-12-months-0-balance-transfer-fee-new-existing-cardholders/

Millennial Outrage

Desperation

Dylan
Dylan

Especially because MSing is basically a balance transfer with a 0% fee.

Gadget

Likely someone who has multiple credit card balances and trying to consolidate debt. Certainly not a financially smart move, but some people are willing to pay fees and interest to make their life “easier”, to have one CC bill to pay vice 4. Much better options exist than BT at 3-5%. But realistically speaking, many people are in debt and paying interest… And some just seek to get a lower monthly payment so they have more money to spend.

Nickod777
Nickod777

Yep. I opened 4 new cc accounts one time to BT 13 grand. 3 of those accounts opened with 1.5k each. 4th account gave me 8.5k…

I truthfully don’t know why a non-rewards card was able to get me 8.5k.Which recently got increased to 9.5k.

missjenniferd1
missjenniferd1

3% isnt bad when you have a high credit limit and need cash. i did several balance transfers, but i gain 4.5& interest on $20,000 at my bank account with first advantage. i didnt really have enough to max that out because i just upgraded to a nicer house. so i was basically cash strapped. when that 4.5% deal came along with first advantage, max $10,000 per account, and max 2 accounts, so a total of $20,000. i got an offer from discover for 18 months zero %, 3% fee, so for me it was a no brainer. granted, it’s not MUCH of a gain, considering the fee, but when you are cash strapped, it’s more about having money (to do more bank deals), and just not being broke. im very good with my money, and didnt owe anything on my previous house, but when i moved, i had to pay on my old home till it sold, plus my new home as well. that went on for 8 months straight. i now owe $30,000 on a $210,000 home, so i think i’m doing great, but it was no fun going back to being paycheck to paycheck. so i drew off $20,000 at a 3% fee, have 18 months to pay it back, am no longer cash strapped. plus i’m gaining all the fee back due to the 4.5% interest, and i also have funds to “play” with to do bank deals, whereas previous to that, i couldnt due to being cash strapped. i have at least tripled my money back on the fee due to having the funds to doing bank deals alone. furthermore, because of doing bank deals, i’m actually being able to pay more down toward my bills than what i wouldve been able to had i not drawn the money off. i made at least $2000 in bank deals last year, and about $1500 so far this year. the fee on $20,000 at 3% was $600. but after this bt offer runs out, i wont be doing any more, 5% is no longer a viable option, but i think i will have paid all my debt back by the end of it anyway, but even if i havent, there’s plenty of other banks that still do 3%. some are even lower, barclay usually sends me 1% fee deals, and chase sends me 2% fee deals.

Back to Top ↑