balance transfer fee

What is a balance transfer fee?

Information verified correct on May 25th, 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 May 25th, 2017
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Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
Virgin Australia Velocity Flyer Card - Exclusive Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent within the first 3 months, plus a $129 Virgin Australia Gift Voucher each year.
0% p.a. for 18 months 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
Earn 1 NAB Rewards Point per $1 spent and receive double points on purchases made in major department and hardware stores.
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
Earn 1 Reward Point per $1 spent and receive an annual fee refund with minimum spend.
0% p.a. for 22 months with 2% balance transfer fee 19.99% p.a. $99 p.a. Go to site More info
Emirates Citi World Mastercard
Earn up to 1.5 Skywards Miles for every $1 spent and indulge in carefully curated local and global experiences.
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
Earn 2.5 More Rewards Points per $1 spent and receive complimentary travel insurance.
0% p.a. for 6 months with 1% balance transfer fee 19.99% p.a. $270 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
Take off sooner with up to 1 Velocity Point per $1 spent and receive 30,000 Bonus Velocity Points.
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 Vertigo Platinum
Save with 12.74% p.a. on purchases. Also enjoy up to 55 days interest-free.
0% p.a. for 20 months 12.74% p.a. $99 p.a. Go to site More info
BankSA Vertigo Platinum
Save with 12.74% p.a. on purchases. Also enjoy travel insurance.
0% p.a. for 14 months 12.74% p.a. $0 p.a. annual fee for the first year ($99 p.a. thereafter) 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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