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What is a balance transfer fee?

Learn more about the one-time fee you'll pay when you move your debt to a new credit card.

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.

Sometimes, this fee is capped at a set dollar amount 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. Unlike an annual fee, this fee is only charged once when you first move your balance.

Not all balance transfer credit cards charge a balance transfer fee, so it's something worth considering when you're comparing your balance transfer options. If you're wondering if your new card will charge a balance transfer fee, you can check the product disclosure statement (PDS), the card review on finder or contact the card issuer to confirm the fee.

Comparison of credit cards without a balance transfer fee

Rates last updated February 25th, 2018
$
% p.a.

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Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Amount Saved Product Description
NAB Premium Card - Exclusive Offer
0% p.a. for 25 months
19.74% p.a.
$90 p.a.
Exclusive to finder.com.au, enjoy a 0% BT fee, 0% balance transfer offer for 25 months and seven complimentary insurance covers.
St.George Vertigo Platinum - Online Offer
0% p.a. for 24 months
12.74% p.a.
$99 p.a.
Platinum card benefits including complimentary insurance, plus 0% p.a. for 24 months on balance transfers (with no BT fee). Ends 28 February 2018.
Virgin Money Low Rate Credit Card
0% p.a. for 14 months
11.99% p.a.
$49 p.a.
Receive a discounted annual fee, $100 cashback when you meet the spend requirement and up to 14 months interest-free on balance transfers.
Emirates Citi World Mastercard
0% p.a. for 9 months
20.99% p.a.
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Receive up to 60,000 bonus Skywards Miles, pay half the annual fee for the first year and indulge in curated local and global experiences.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Earn up to 60,000 bonus Velocity Points in the first 3 months and enjoy a discounted annual fee of $64 for the first year. Ends 28 February 2018.
St.George Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of a 3% p.a. interest rate on balance transfers for 36 months. Plus, a $0 first year annual fee and 1 Amplify Point per $1 spent.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Save with 0% p.a. for 18 months on balance transfers and earn 3 bonus Velocity Points per $1 for the first 3 months. Offer ends on 28 February 2018.
Suncorp Clear Options Platinum Credit Card - Exclusive Offer
0% p.a. for 18 months
20.74% p.a.
$99 p.a. annual fee for the first year ($129 p.a. thereafter)
Exclusive to finder, receive a long-term, no fee balance transfer and earn up to 1.25 Suncorp Rewards Points per $1 spent.
Citi Simplicity Card
0% p.a. for 15 months with 1.5% balance transfer fee
19.99% p.a.
$0 p.a.
Earn 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from card approval. Plus, a 15 month balance transfer offer.
NAB Qantas Rewards Card
4.99% p.a. for 6 months
19.99% p.a.
$95 p.a.
A Visa card that offers 0.5 Qantas points per $1 spent, complimentary purchase protection insurance and up to 44 days interest-free on purchases.

Compare up to 4 providers

Balance transfer review and frequently asked questions

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Credit Card Offers

Important Information*
American Express Velocity Escape Card
American Express Velocity Escape Card

Interest rate

20.74

Annual fee

0
NAB Premium Card - Exclusive Offer
NAB Premium Card - Exclusive Offer

Interest rate

19.74

Annual fee

90
St.George Vertigo Platinum - Online Offer
St.George Vertigo Platinum - Online Offer

Interest rate

12.74

Annual fee

99
Westpac Low Rate - Online Offer
Westpac Low Rate - Online Offer

Interest rate

13.49

Annual fee

59

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2 Responses

  1. Default Gravatar
    RickyNovember 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
      JeremyNovember 17, 2011Staff

      Hi Ricky

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

      Cheers

      Jeremy

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