A new two per cent charge will now be levied on all balance transfers for Halifax One cardholders, up to a maximum of £50.

Halifax is following the lead of a number of rival lenders, including Barclaycard, Egg, BskyB and MINT.

Richard Mason, director of credit cards at price comparison website moneysupermarket.com believes the move represents “another nail in the coffin for the zero per cent fee-free balance transfer deal”.

“In a market fast becoming a game of swings and roundabouts, it seems more and more providers are rethinking the benefits offered on their credit cards.”

In addition, Halifax has withdrawn the 0.25 per cent cashback scheme previously applied to all purchases as well as raising the minimum charge for cash withdrawals from two to 2.5 per cent.

However, Mr Mason points out that Halifax One now offers new cardholders a 12-month interest free balance transfer facility, with the fee only imposed after this date.

“This move may spark other card providers to raise the stakes and introduce 0% balance transfer and purchase deals for at least 12 months, though I am sure that those who do not charge a fee will remain the most attractive to financially savvy customers,” he concluded.

To read more about balance transfers, click here.

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