Balance transfer fee
A balance transfer fee is the charge for moving a balance to a credit card, usually 3% to 5% of the amount transferred, often with a $5 minimum, added to the new card's balance.
On $5,000, a 3% fee is $150 and a 5% fee $250. It is charged once, when the transfer posts. Some cards charge a lower fee for transfers made in the first months.
Work it out
Related terms
Sources: CFPB: Regulation Z, 12 CFR 1026.53