A balance transfer and an easy payment plan may seem similar because both break a large amount of borrowed money into fixed monthly instalments. But they serve different purposes. A balance transfer is for existing credit card debt that is already charging you interest. An easy payment plan is for a new purchase you haven't paid for yet. Choose the wrong one, and you either pay interest you could have avoided or leave expensive debt growing.
Balance Transfers
When you carry a balance over on a credit card bill, a large chunk of each repayment goes towards interest rather than reducing what you owe. A balance transfer moves that outstanding balance onto a new card (or sometimes an existing one) at a lower promotional rate, giving you a window to pay that debt down faster.
Most banks in Malaysia offer a promotional 0% rate for 6 to 24 months. When the promotion period ends, the standard rate (up to 18% p.a.) applies to whatever balance remains, so the plan only works if you clear the balance before the promotional period ends.
Most balance transfer promotions require the debt to come from a card at a different bank. You generally cannot transfer between two cards at the same institution. Someone with two Maybank cards, for example, cannot use a Maybank balance transfer to move debt between them.
Balance transfer plans come in two structures, and choosing the one to save you the most money depends on how long you need to repay the balance you’re transferring:
- 0% with an upfront fee: a one-time handling fee (typically 2% to 5% of the transferred amount) applies, then 0% interest for the tenure. The fee is fixed regardless of how quickly you repay.
- Low flat rate: no upfront fee, but a fixed interest rate applies throughout. A flat rate is calculated on the original transferred amount for the full tenure, not on your reducing balance, so you pay the same interest charge each month even as you repay.
For a RM5,000 balance, here is what each option costs you over 12 months:
| Scenario | Total cost over 12 months | Balance remaining after 12 months |
| 0% with 3% upfront fee (12-month plan) | RM150 (one-time fee only) | RM0 |
| 7% p.a. flat rate, no fee (12-month plan) | RM350 | RM0 |
| Staying on existing card at 18% p.a., minimum payments only | RM745 | RM3,261 still owed |
After a full year of minimum payments on your existing card, you've paid RM745 in interest and still owe RM3,261. Most of what you paid went to the bank, not to clearing what you owe. Either balance transfer option clears the full RM5,000 in the same 12 months, for RM150 or RM350.
For a 12-month plan, paying the upfront fee once is usually cheaper. If you need more time to repay, say 24 months, the monthly interest on a flat rate plan can end up costing less in total. Check both options before you decide.
Maximum transfer amounts are capped at 80% of your credit limit. The minimum is RM1,000 for most banks. Compare balance transfer plans across Malaysian banks to find the tenure and rate that works for your situation.
Easy Payment Plans (EPP)
An EPP splits a purchase into fixed monthly instalments, usually at 0% interest, directly at the point of sale. A RM3,000 purchase split over 12 months at 0% works out to RM250 per month with no additional cost. The same RM3,000 left to revolve (carry forward month to month as unpaid debt) on your card at 18% p.a. on the minimum payment alone would take around four and a half years to clear and cost over RM1,000 in interest.
The most common purchase is a big-ticket item at retailers like Harvey Norman or Courts, where paying in full upfront would leave a large balance sitting on your card at 15–18% p.a.
EPPs are merchant-dependent. That means the store has to be partnered with your card's bank for the plan to be available. Common categories include electronics, furniture, appliances, travel, and jewellery, but the pairing varies by bank and retailer. If your bank isn't in the merchant's programme, you can't use EPP there.
Most banks set a minimum of RM500 per transaction to qualify for EPP, though Maybank EzyPay and CIMB 0% Easy Pay both require RM1,000. Tenures (the length of your repayment period) typically range from 3 to 36 months, with some banks up to 48 months for selected merchants such as Apple resellers. The 0% rate only holds if you pay on time.
Miss a payment, and the bank reverses the 0%, applying up to 18% p.a. on the remaining balance for the rest of the tenure. The miss is also recorded by credit reporting agencies, and in CCRIS, Bank Negara's central credit database, and might affect your credit score and future loan or card applications.
On early exit, most banks (Maybank, HSBC, Public Bank, RHB, and Standard Chartered) waive the termination fee entirely. CIMB charges RM50, and UOB's Easi-Payment Plan charges 5% of the outstanding balance. Check the bank's current Product Disclosure Sheet before settling early, as fee structures can change.
EPP transactions may not earn the same rewards, cashback, or points as regular card spend. Some banks award full points on EPP transactions. Others exclude them or award at a reduced rate. HSBC, for instance, does not award reward points on any card instalment plan purchase. Check your card's terms before committing if rewards matter to you.
The full EPP amount is also held against your credit limit for the duration of the plan. On a RM10,000 credit limit with RM6,000 in EPP, your available credit for other spending drops to RM4,000 until it's fully settled. If you already have a balance on your card, check that adding the EPP amount won't push you over your limit, as over-limit charges apply.
Not all credit cards offer EPP. Compare which cards include it and which merchants are covered on the easy payment plans page, and read up on how EPP hidden costs work before you commit.
Balance Transfer vs EPP
Both use your credit card and result in fixed monthly payments, but what each solves and when you use it is different.
| Balance Transfer | Easy Payment Plan | |
| What it solves | Debt already on your card costing you interest | A large purchase you're about to make |
| When you use it | Any time after the debt is on the card | At the point of sale |
| Typical cost | 0% + upfront fee, or low flat rate | 0% if paid on time |
| Merchant required | No | Yes, bank must be partnered |
| If you miss a payment | 0% reversed. Up to 18% p.a. applies | 0% reversed. Up to 18% p.a. applies |
Flexi Payment Plans
A flexi plan works like an EPP but without the merchant restriction. You make a purchase on your card, then convert it into monthly instalments via your bank's app, usually before your statement date. Any eligible transaction above the minimum amount can be converted, not just purchases at specific retailers.
Flexi plans carry an interest rate, unlike a standard EPP. For example, Maybank's EzyPay Plus runs at 9% p.a. standard (promotional 0% applies during campaign periods). CIMB's Flexi Payment Plan rate varies and is set by the bank, so check the current rate via the CIMB OCTO app before applying. Both are lower than the 15–18% p.a. you'd pay on a revolving balance, but they're not free.
Use a flexi plan when you've already made a purchase at a merchant that isn't in your bank's EPP programme and want to spread the cost without letting it sit on your card at the full revolving rate.
For BNPL options, the BNPL guide covers providers like Atome, Grab PayLater, and SPayLater, their costs, and how the Consumer Credit Act 2025 affects them.
Which One Applies to You
Carrying debt on a card you're paying interest on
A balance transfer moves it to a lower rate. Clear the balance before the promotional period ends, as anything left will be charged at the standard rate. Most promotions require the balance to come from a different bank's card.
Buying something large at a participating merchant
If your bank is in the merchant's programme, a 0% EPP for up to 36 months is the cheapest way to spread the cost. Check whether your card earns rewards on EPP spend before committing, and make sure the monthly instalment fits your budget, as missing one reverses the rate.
Already purchased at a merchant not in your bank's EPP programme
A flexi payment plan converts it into instalments before your statement date. The rate is higher than a 0% EPP but much lower than the 15–18% p.a. you'd pay if the balance revolves on your card.
Before You Commit
Can you meet every monthly payment? Missing one on an EPP or balance transfer reverses the promotional rate. The bank applies up to 18% p.a. on whatever remains for the rest of the tenure.
Does the EPP or balance transfer reduce your available credit? Yes. The full amount is held against your credit limit until it's cleared. If your card already carries a balance, check that adding the plan won't push you over your limit, as over-limit charges apply.
For a balance transfer, have you worked out the total cost? Include the upfront fee or the flat rate interest across the full tenure, not just the monthly instalment. A leftover balance when the promotion ends gets charged at the standard rate, which could wipe out what you saved during the promotional period.
Frequently Asked Questions
What is a flexi payment plan and how is it different from an EPP?
A flexi payment plan converts a purchase you've already made into monthly instalments via your bank's app. Unlike an EPP, it isn't restricted to specific merchants. Any eligible transaction above the bank's minimum amount can be converted. Flexi plans carry an interest rate, typically around 9% p.a. A standard EPP is 0% if you pay on time.
Can I use an EPP at any merchant?
No. EPPs are only available at merchants partnered with specific card issuers. If your bank isn't in the programme, you won't be able to use EPP there regardless of which card you have.
What happens if I miss an EPP payment?
The bank reverses the 0% rate and applies up to 18% p.a. on the remaining balance for the rest of the tenure. The missed payment is also recorded with credit rating agencies and CCRIS, which can affect your credit score and future loan applications.
Can I pay off my EPP or balance transfer early?
Yes, though some banks charge a termination fee. For EPPs, Maybank, HSBC, Public Bank, RHB, and Standard Chartered waive it entirely. CIMB charges RM50. For UOB's Easi-Payment Plan, the early termination fee is up to 5% of the outstanding balance. UOB's 0% Instalment Payment Plan (0% IPP) has no cancellation fee. For balance transfers, check your bank's current Product Disclosure Sheet.
Does an EPP reduce my available credit limit?
Yes. The full EPP amount is held against your credit limit for the duration of the plan. Your limit is restored progressively as you make each monthly payment. If your card already has a balance, adding a large EPP may push you close to or over your limit.
What is the standard credit card interest rate in Malaysia?
Bank Negara Malaysia (BNM) regulates credit card rates through a tiered structure based on your payment history. Pay on time for 12 consecutive months, and you get the best rate of 15% p.a. Miss even one payment in that year, and it moves to 17% p.a. Miss three or more, and it goes to 18% p.a. Your tier is assessed per bank, so, for example, your rate at Maybank is independent of your rate at CIMB.
Can I do a balance transfer on my existing card or do I need a new one?
Both are possible, but most balance transfer promotions require the balance to come from a card at a different bank. Some banks restrict the promotional rate to new customers. Check whether the card you're applying to requires you to be new-to-bank to qualify.
What is the minimum income to apply for a credit card with EPP or balance transfer?
Most banks in Malaysia require a minimum monthly income of RM2,000 to RM3,000 for a basic credit card. Some cards with higher credit limits or more competitive balance transfer rates require RM3,500 or more. EPP availability is tied to your card, not a separate application, so the income requirement is the same as your card's eligibility criteria.
