How much effort does it take for credit card companies to do a transfer?

Question

What does it take for them to do the actual transfer from one credit card to the next? They want to add an extra charge of 4% of the debt that I owe to transfer over. This is nonsense. I really don't think pushing a few buttons on their computers requires such an extra charge. Please explain the actual process if you really know.

Answer 1

Zero effort; what buttons need to be pushed? The cashier does all the work.

The credit card company doesn't push a single button. The cash register is where all the buttons are pushed. After that it is all electronic and no humans are involved.

Once the credit card is scanned the terminal knows the number and the account for it. The cashier enters the price and that amount is automatically added to your balance due. Anything like sales tax is handled at the terminal.

This is why you can make a charge at 4:00 am and have it go through in just a few minutes. The only limit to the time of the transaction is how fast the Internet connection is.

I like to do electronic banking on Bank of America's website. When I use my debt card the transaction, and change in my balance is immediate. I check it at an ATM or at home and the charge has gone through and the balance shows that charge and is current.

I also pay my bills on line, including my credit card bills. I set up an account and address for the company that I want to pay a bill to and Bank of America handles the rest. I enter the amount to pay, select a date to pay it on and the payment is made. In most cases it is an electronic payment, but if necessary Bank of America will print and mail a check to make that payment.

Once the cashier is finished with pushing the buttons on the cash register and the card is scanned in, before you can reach for the pin to sign the receipt the transaction is complete. It was done all by computers and the credit card company expends no effort at all. This is why credit cards are such bad deals. They are charging you for the privilege of having an open unsecured loan that you can access at any time.

If I transfer money from my bank to my credit card it doesn't cost me anything. If you transfer money from your Visa to your Mastercard then both companies want to get a piece of that action so a transaction fee is charged. Deal with a bank and save the charges.

Answer 2

I work at Capital one and I handle balance transfers everyday. On our end its really just a click of a few buttons,but alot of banks(including Capitol One),charge a fee for that service.Try to find one thats 0% for 1 year with no balance transfer fee