balance transfer fee

What is a balance transfer fee?

Information verified correct on April 28th, 2017

What is a balance transfer fee? Discover what you'll have to pay when you consolidate your debt.

Balance transfers can be a useful way to consolidate your debt without the cost of high interest. While you'll save on balance transfer rates, this doesn't mean that balance transfers are cost-free. As well as the standard card fees, you might also have to pay a one-off balance transfer fee. Here we explain what this fee is and how you can confirm what you'll have to pay when you transfer your balance.

What is the balance transfer fee?

A balance transfer fee is charged when transferring your existing credit card debt to a new credit card. It is usually 1-3% of the entire balance transfer amount.

When you conduct a balance transfer, you may be asked to pay a one-time balance transfer fee. It's generally 1% to 3% of the total balance being transferred. Sometimes, this fee is capped and you'll be required to pay the larger of the two. Usually, a balance transfer fee will be capped between $25 and $100. So if the fee had been capped at $75 and the balance transfer fee was 2%, then the 2% would be applied to any balance up to, say, $4,250. After this amount, you'd be required to pay the $75.

If you're wondering if your card will charge a balance transfer fee, check the relevant product disclosure statement (PDS) and you should be able to locate your answer under the 'fees and rates' section. If you're still unsure, contact the provider's customer service team to confirm what you'll be expected to pay.

Comparison of credit cards without a balance transfer fee

Rates last updated April 28th, 2017
$
% p.a.

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Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent within the first three months. Plus, save with a long-term balance transfer offer and a reduced annual fee in the first year.
0% p.a. for 18 months with 1.5% balance transfer fee 20.74% p.a. $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
NAB Rewards Platinum Card
Enjoy 80,000 bonus points when you spend $2,500 on everyday purchases within 90 days from card approval. Benefit from $0 annual fee for the first year and a range of platinum features.
4.99% p.a. for 6 months 19.99% p.a. $0 p.a. annual fee for the first year ($195 p.a. thereafter) Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
0% p.a. for 15 months 19.99% p.a. $149 p.a. Go to site More info
Emirates Citi World Mastercard
Receive up to 50,000 bonus points and enjoy a reduced annual fee for the first year.
0% p.a. for 9 months 20.99% p.a. $149 p.a. annual fee for the first year ($299 p.a. thereafter) Go to site More info
Bankwest More World MasterCard
Enjoy a low balance transfer rate and earn 2.5 per $1 spent on eligible purchases.
2.99% p.a. for 9 months 19.99% p.a. $240 p.a. Go to site More info
Bankwest Qantas World MasterCard
Earn uncapped Qantas Points per $1 spent on eligible purchases. Also enjoy no foreign transaction fees on online and overseas spend.
2.99% p.a. for 9 months 20.49% p.a. $270 p.a. Go to site More info
Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
Receive up to 30,000 bonus Velocity Points and earn 1 Velocity Points per $1 spent. Receive an exclusive $129 Virgin Australia Gift Voucher and two complimentary Single Entry Virgin Australia domestic Lounge passes each year.
1.9% p.a. for 15 months 20.74% p.a. $144 p.a. annual fee for the first year ($289 p.a. thereafter) Go to site More info
ANZ Platinum Credit Card - Exclusive Offer
Receive a low introductory offer of 0% p.a. on purchases for 3 months and 0% p.a. on balance transfers for 12 months. Also, enjoy an annual fee waiver in the first year.
0% p.a. for 12 months 0% p.a. for 3 months (reverts to 19.74% p.a.) $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
Bank of Melbourne Amplify Platinum
Enjoy introductory offers on purchases and balance transfers with a sign up bonus points of 30,000 on eligible spend.
0% p.a. for 12 months 0% p.a. for 6 months (reverts to 19.49% p.a.) $99 p.a. Go to site More info
Bank of Melbourne Vertigo Platinum
A platinum card with a low balance transfer offer of 0% p.a. interest for 12 months and 0% p.a. for 6 months on purchases combined with complimentary insurance covers.
0% p.a. for 12 months 0% p.a. for 6 months (reverts to 12.74% p.a.) $99 p.a. Go to site More info

Balance transfer review and frequently asked questions

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2 Responses to What is a balance transfer fee?

  1. Default Gravatar
    Ricky | November 15, 2011

    Are you aware of any credit cards in the Australian market that currently charge a balance transfer fee? I’ve shopped around and I can’t find any at present…

    • Staff
      Jeremy | November 17, 2011

      Hi Ricky

      The HSBC Credit Card currently charges a 2% balance transfer fee.

      Cheers

      Jeremy

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