A guide to understanding money transfers
What is a money transfer?
A money transfer is when you transfer money from your credit card and pay it into your bank or building society account. It will form part of your credit card balance and is subject to repayments as part of your monthly statement balance.
This service is available on some credit cards and is usually quite simple to arrange. Once the money has reached your account you can use it to pay for goods or services, pay off higher interest credit where appropriate, or unexpected bills (for instance, a broken boiler). You’ll usually be charged a money transfer fee on any transfers you make (usually a percentage of the transfer value).
Using a money transfer means you won’t have the Section 75 protection provided by the Consumer Credit Act 1974 for credit card payments. However, even with a handling fee, a money transfer may still be more cost effective than paying for goods and services using a credit card.
Money transfers - a quick summary
Before you get into the more detailed information below, you might like to watch this short video about money transfers. It covers the basic benefits and the different ways you can request a transfer.
They're a great idea.
Basically it's transferring money from your credit card to your bank account. Transfer fees may apply.
It's really handy for cash only purchases.
And you can request a transfer quickly and easily.
Do it online, or through the MBNA app 24/7
You'll need to make at least the minimum monthly payment.
But overpaying means you'll clear your balance faster.
What’s great about money transfers?
Depending on your credit card lender, you’re unlikely to be charged for making overpayments or clearing your balance early, meaning you could save money and clear your debt faster. Overpaying is particularly useful if you take a money transfer on a promotional rate, as you could pay off your balance before the promotional rate ends (after which the standard interest rate would apply, costing more and potentially taking longer to clear).
How to do a money transfer
You can ask for a money transfer as part of your credit card application, and afterwards using the MBNA Card Services App and Online Card Services (where you’ll be able to see all available offers), or by contacting us.
You’ll need to know how much you want to transfer, along with the account number and sort code of the UK bank or building society account you want to transfer the money to. After we approve the request, the transfer will normally arrive by the next working day. Working days do not include weekends or bank holidays.
Browse the range of MBNA money transfer credit cards and find the right one for you.
What else do I need to know about money transfers?
Money transfer requests are subject to eligibility and security checks, but these won’t leave a footprint on your credit file.
Money transfers must be a minimum of £100, and the maximum amount you’ll be able to transfer is up to 93% of your credit limit. This is to allow for any money transfer fee and any other fees, as well as charges or transactions which haven’t yet reached your account.
Once the money transfer has been processed you can’t cancel it and any fees can’t be returned.
If you’ve taken advantage of a promotional offer but haven’t paid off the transfer amount in full before the offer ends, interest will be payable on the remaining amount at the standard interest rate applicable at the time.
Other useful information
Promotional offers will no longer apply from the beginning of any statement period during which you have breached your terms and conditions, for example if you haven’t paid on time or have gone over your credit limit.
Payment allocation - any payments you make will be used to pay off amounts on which we charge the highest rate of interest first, then the next highest rate, and so on down to the lowest rate of interest.
Other borrowing options - before asking for a money transfer it's worth considering other ways to borrow, as well as any savings you may have, as these could be better options for you.