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A guide to understanding money transfers

A guide to understanding money transfers

A money transfer is when you transfer money from your credit card and pay it into your bank or building society account.

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, or unexpected bills. 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 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 Video

Video transcript

 

What is a money transfer credit card?

A money transfer credit card comes with the ability to request a transfer of money from the card to your bank or building society account. You will usually need to pay a fee for a money transfer, normally a percentage of the amount you want to transfer. Money transfer cards often include introductory low rates, although promotional rates might also be offered to existing customers.

 

What’s great about money transfers?

  • They could save you money: a money transfer with an introductory promotional offer may be more cost effective than paying for goods and services using a credit card, but you won’t have the protection provided by the Consumer Credit Act 1974 for credit card payments (Section 75 protection).
  • There are usually no charges for early payments: 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. When you do this, the balance goes onto the standard interest rate, which could then cost you more and take you longer to clear.

 

How to do a money transfer 

You’ll need to know how much you want to transfer, along with the account number and sort code of your bank or building society account you want to transfer the money to.

To request a money transfer using Online Card Services or Mobile Card Services – just log in or register to get started. If you aren’t a customer, you can usually request a money transfer as part of a new credit card application with MBNA. If you apply online it’s one of the options on the ‘account choices’ section.

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?

Important to remember

  • All transfers are subject to our approval.
  • The lowest amount you can transfer is £100. The maximum amount you can transfer depends on your credit limit and any existing balance you may have on your account. The total transfer amount plus any balances already on your account and any transfer requests already made, cannot be more than 93% of your credit limit. This is to allow for future transactions on the account.
  • You can only make a money transfer to a UK bank or building society account.
  • Once the transfer has been processed you cannot cancel it and any fees cannot be returned.
  • By transferring money from a credit card to your current account, you won’t have the protection provided by the Consumer Credit Act 1974 for credit card payments (Section 75 protection).

 

What if a promotional offer is involved?

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.

Remember to stay within your limit and to make at least the minimum monthly payments on time, otherwise you’d lose the promotional offers on your account and pay the standard interest rate instead.

If you need any more information or would like a hand with your money transfer, just get in touch.