Plain-language definition
A balance transfer fee is a charge for moving a balance to another account. It can be calculated as a percentage of the amount transferred and may be added to the balance on the receiving account.
Why it matters
The fee is an immediate transfer cost and must be included when comparing a promotional APR with the interest that might accrue on the original account.
Example
A 3% fee on a $5,000 transfer is $150. If added to the receiving account, the transfer path begins at $5,150 before promotional interest and payments.
What to check on your statement
Use the term as a starting point, then locate the matching label, balance category, date, fee, or rate on the current statement and cardmember agreement.
Common confusion
- A 0% promotional APR does not make the transfer fee disappear.
- The approved transfer amount may be limited by the new account's terms and limit.
Related learning
Related tools
Sources
Sources are listed so readers can verify the key facts, assumptions, and limitations behind this page.
This definition is general education and should be checked against the current statement, agreement, and official guidance when making a decision.