What is a balance transfer fee?
Reviewed by the CompareMyCard editorial team · Last updated 14 August 2026
A balance transfer fee is a one-time charge, typically 3% to 5% of the amount transferred, charged when you move a balance from one credit card to another, most commonly to take advantage of a 0% intro APR offer.
A worked example
You transfer a $5,000 balance to a card with a 3% balance transfer fee and a 0% intro APR for 18 months. You'll pay a $150 fee upfront, but if you'd otherwise have been paying, say, 24% APR on that balance, you could save well over $1,000 in interest over those 18 months, even after the fee. The math only works in your favor if you can pay off the balance before the intro period ends, after that, the regular APR applies to whatever's left.
Why it matters when choosing a card
Always compare the balance transfer fee against the interest you'd actually save. A 5% fee on a small balance you could pay off in two months probably isn't worth it, the same fee on a large balance you'll take over a year to pay down usually is.