What is a money transfer?

Exploring one of the ways you can use your credit card.

A quick summary

 
  • A money transfer is when you move money from your credit card directly into your own UK current account.
  • The minimum money transfer is usually £100.
  • You could get an introductory or promotional interest rate. You may also pay a one-off money transfer fee, as well as more interest over time.
  • Money transfers are only available to UK residents aged 18 or over and are subject to status.
  • A money transfer is one of four ways to use a credit card, including card purchases, balance transfers and cash transactions.

Money transfer basics

A money transfer is when you transfer funds from a credit card directly to a bank account for use on purchases.

  • You can only send money to your own UK current accounts.
  • As well as interest, money transfer fees may apply. This is usually a small percentage of the transferred amount.
  • A money transfer is subject to approval.

Watch our short video for more details.

What is a money transfer? Watch our short video to find out more.

Why is a money transfer useful?

If credit cards aren't accepted

For example, if your current account balance is low and somewhere doesn’t accept credit cards, a money transfer can provide funds to use from your current account using your debit card.

For financial flexibility

A money transfer can also be helpful for unplanned expenses and one-off major purchases, letting you use your credit card’s available funds in situations where you can’t use your card. This is because the transferred money can be taken out of your current account as cash or used to pay for things with your direct debit.

A closer look at money transfers

You may be charged a money transfer fee

This fee is usually a small percentage (up to 5.00%) of the amount you’re transferring into your current account. You’ll most likely be charged each time you make a money transfer.

You’ll also pay interest, but the rate can vary

If you get a promotional interest rate but don’t clear your balance before it finishes, you’ll move onto your standard money transfer rate. The sooner you clear your balance, the less interest you’re likely to pay.

If you’ve already taken out a promotional offer

Before you apply for a new offer, it’s always worth checking which one you’ll be paying off first. Find out more about balances and what your payments go towards

You can’t transfer to a foreign account, or one that isn’t yours

Any money transfer must always be sent directly to a UK current account in your name.

The minimum amount you can transfer is £100

The maximum amount varies from person to person, depending on your credit limit and your credit available at the time.

How a money transfer works in practice

Here is a simple example using a card with a promotional offer giving you a 0% money transfer interest rate for 12 months. Before you complete a transfer, you’ll be told your interest rate (and whether you have a promotional rate) as well as your money transfer fee.

  1. You get an unexpected £500 car repair bill, but you don’t have enough money in your bank account. Your garage also doesn’t accept credit cards.
  2. You have a credit card with a 0% money transfer interest rate for 12 months and a 3% transfer fee. So you complete a £500 money transfer with a 3% fee, totalling £515 on your credit card.
  3. This puts £500 into your current account, so you can pay for the repairs using your debit card.
  4. The promotional rate will expire after 12 months. If the balance isn’t fully repaid, any remaining amount will revert to your standard money transfer rate.
  5. Remember, the amount of interest you will be charged depends on how quickly you pay it back. Other fees may also apply, depending on your credit card provider.

Please note:

If you have more than one promotional offer, the one with the highest interest rate will be paid off first. 

  • If they have the same interest rates, balances will be paid off in the order you took them out.
  • They won’t be paid off based on which offer ends first.

Find out more about balances and what your payments go towards

Is a money transfer right for you?

  • Explore all your options carefully, checking fees, interest rates and the terms and conditions.
  • With a dedicated money transfer credit card, you could get an introductory/promotional interest rate.
    • When your promotional rate is coming to an end, we’ll make sure to let you know in plenty of time.
    • We’ll then charge your standard variable interest rate on any balances left after this. You can find this rate on your monthly statement.
  • Purchases won’t be protected under Section 75 of the Consumer Credit Act 1974 when using money transferred from your credit card to your current account – unlike some purchases made with your credit card.
  • If you pay late or miss a payment, you may have to pay fees, lose any promotional offers you have, and it could damage your credit score.
  • Promotional interest rates won’t apply to all transactions. So, you need to understand how using a balance transfer credit card for other things could affect the cost of borrowing and time to repay.
  • If you use a money transfer card for other purposes such as everyday spending, the standard purchase rate might be higher. Which means you could be charged more interest.
  • Payments will be made towards the balances with the highest interest rate first. Find out more about balances and what your payments go towards

Key points on money transfers

  • A money transfer is when you move money from your credit card directly into your own UK current account.
    • This could be helpful if you need to make cash-only purchases, or manage unexpected expenses.
  • The minimum money transfer is usually £100, the maximum depends on your credit limit.
  • Money transfers are only available to UK residents aged 18 or over and are subject to status.
  • You could take advantage of an introductory or promotional interest rate. And you may also pay a one-off money transfer fee, as well as more interest over time.
  • If you have more than one promotional offer, the one with the highest interest rate will be paid off first. 
  • A money transfer is one of four ways to use a credit card, including card purchases, balance transfers and cash transactions.

How to make a money transfer with us

So you can make an informed decision, we will always tell you up front what fees and interest rate you’ll be paying. If you’re an existing customer, log on to Internet Banking or the Mobile Banking app to see your money transfer offers.

Log on to Internet Banking

If you don’t bank online, please call us to discuss your options.

Use One Check to find the right credit card for you

For new customers, first find a credit card that’s right for you using One Check – our easy to use eligibility checker that doesn’t affect your credit score. Based on eligibility, money transfers are offered to credit card holders once their account has been set up.

Check your eligibility

Let’s look at the details

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