What is a balance transfer fee?

A balance transfer fee is a fee that is charged when you transfer one or more credit card balances to another credit card account. In Florida, balance transfer fees are regulated by the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). In general, the fee is typically charged as a percentage of the amount being transferred, usually three percent, with a minimum balance transfer fee. The percentage rate and the minimum fee amount can vary, depending on the credit card issuer and may not be the same for all credit cards. In addition, some credit cards do not charge any fee for balance transfers. The purpose of the balance transfer fee is to cover the cost of processing a transfer and to discourage people from transferring their debt around among multiple credit cards. Since balance transfers are a convenience, they need to be paid for in one form or another. In order to take advantage of a balance transfer fee, it is important to review the terms and conditions of the transfer before agreeing to it. Balance transfer fees are only charged when the transfer actually takes place, and some credit card issuers may charge a higher fee if you go over the balance limit. They can also be charged for transactions such as cash advances. It is important to remember that balance transfer fees are only part of the cost of transferring a balance. Interest rates and other fees may also apply after the balance has been transferred. It is important to read and understand all of the terms and conditions associated with any credit card transfer before agreeing to it.

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What is a balance transfer fee?

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