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What is a balance transfer fee?

Feb. 21, 2025
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4 min read
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If you're conducting your first balance transfer, you might not know that there's generally a fee attached. Unsurprisingly, we call this a balance transfer fee.

A balance transfer fee tends to be 3% to 5% of the total amount transferred. There are some restrictions on balance transfers, such as an amount limit. Also, same-issuer transfers — for example, transferring debt on one Citi card to another Citi card — generally aren't allowed.

But how do credit card balance transfer fees work, and what do you need to know about them before conducting a transfer? Here's your complete guide.

How does a balance transfer fee work?

Balance transfer fees typically come out to 3%-5% of the total amount you transfer and usually have a minimum fee of $5 to $10. The fee is charged by the issuer you're transferring the debt to.

Since the entire point of a balance transfer is to save money with lower interest rates, you'll want to weigh the amount you'd be saving on interest versus the amount you'd be paying in transfer fees whenever you're considering a balance transfer.

Woman reviewing bills
FOTOSTORM/GETTY IMAGES

There are a number of balance transfer credit cards with a 0% introductory transfer fee, which can also come alongside a 0% introductory annual percentage rate and other perks. Unless you get a card with benefits like this, you’ll want to ensure your theoretical balance transfer will save you money at the end of the day.

Related: Balance transfer or personal loan: What’s the difference?

What would be a good balance transfer fee?

The cost of a balance transfer fee varies based on the terms set by your credit card company and the amount of debt you transfer. Typically, this fee ranges from 3% to 5%, depending on the issuer.

man talking on phone while on laptop
ROB LEWINE/GETTY IMAGES

While 3% is on the lower end of typical transfer fees (aside from an introductory 0% offer), it all depends on the amount you're paying in transfer fees versus the amount you'd pay in interest if you didn't transfer the debt. While balance transfers are typically less than whatever amount of interest you'd pay on a card, it's not always a guarantee that that's the case.

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Related: Can you keep transferring credit card balances?

Can you avoid balance transfer fees?

The most reliable way to avoid balance transfer fees is to check if there are any balance transfer cards available that completely waive the fee. Alternatively, you may find cards offering introductory balance transfer fee promotions.

Young casually clothed woman online shopping from her domestic kitchen
PEKIC/GETTY IMAGES

It's important to note that the $0 transfer fee may apply only within a specific period. So, it is crucial to read the terms carefully and determine when you need to request the balance transfers for the offer to be valid. Typically, this window falls within the first few months after receiving the card.

Related: What kind of debt can you transfer to a credit card?

Bottom line

When conducting your first balance transfer, it's possible to be unaware of the accompanying 3%-5% fee. Balance transfers can be a useful way to save money on your next high-interest payment, but you'll want to make sure it makes financial sense to pay the transfer fee instead of the interest on your original card.

Check out our full list of the best balance transfer cards for some good options.

Related: The pros and cons of balance transfer credit cards

Featured image by PEKIC/GETTY IMAGES
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.