Balance Transfer

A transaction where a balance owed is transferred from one account to another.  Often the new account has more favorable terms, prompting the transfer.

Balance transfers are usually discussed in the context of the credit card industry; often credit card companies offer a balance transfer deal to new and existing customers to encourage their customers to move balances.  These deals often offer a period of 0% interest, making them appealing to customers who are paying high interest on an existing credit card balance.