What is a money transfer?

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

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.

  • If somewhere doesn’t accept credit cards or if you need funds in your current account to pay for an unexpected bill, for instance. A money transfer could help.

    Available on some credit cards, Money transfers move money directly from your credit card into your own UK current account and can help you be more flexible with your finances in emergency situations.

    You can transfer as little as £100, the minimum usually allowed. While the maximum is usually 93% of your credit limit to leave room for any potential interest or fees.

    When it comes to requesting a money transfer, there’s two main costs you should be aware of.
    The first is your transfer fee. A percentage of the money you’re moving added on to your balance at the time of the transfer.
    The second is interest, which you’ll pay over time until your balance is cleared.
    Sometimes, you’ll find interest rates as low as 0% for a set period of time as part of a promotional offer. But remember that once the offer runs out, any remaining balance will be charged at your standard money transfer interest rate until repaid.

    To help you make an informed decision, at Lloyds Bank we’ll always tell you your money transfer fee and interest rate up front.

    Now let’s see how a money transfer with a promotional offer works in practice with help from Elisha.

    One month, Elisha gets an unplanned £500 repair bill for her car. Unfortunately, she hasn’t budgeted for this in her current account. Plus, her garage doesn’t accept credit cards.

    However, she has a credit card with a promotional offer. It has a money transfer fee of 3% and 12 months of 0% interest on any money transfers made in the next 30 days.To cover the cost of the repair, she makes a money transfer of £500 from her credit card into her current account.
    Now, she can pay for the repair with her debit card.

    Including the 3% money transfer fee, which costs her £15. Her overall credit card balance is now £515.
    She can pay this off in 10 monthly payments of £51.50. She can pay it off in one go on her next payday. Or, however she chooses.

    Elisha won’t pay any interest as long as she pays at least her monthly minimum payment, clears her full balance before her 0% interest rate offer ends, stays within her credit limit and doesn’t spend anything else on her credit card. This also assumes that she had no existing balance on the card to begin with.

    But it’s important to note that if she doesn’t clear her balance before the end of the offer period she’ll pay interest at her standard money transfer interest rate.

    Like Elisha, you can use a money transfer to help you stay financially flexible. But be sure to consider all your available options to make sure that a money transfer is right for you.

    Thanks for watching.
    Visit lloydsbank.com/creditcards for more information.

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.

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.

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.
  • Pay off as much as you can during any promotional periods to pay less interest, as your standard interest rate for money transfers will be higher.
  • If you use a money transfer card for other purposes such as everyday spending, the standard purchase rate might be higher – meaning you could be charged more interest.
  • If you break the terms and conditions of your card, for example by going over your credit limit or not making your minimum payment on time, you could lose any promotional interest rates and offers you have.

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’d prefer, you can also call PhoneBank® to access and manage your account.
0345 602 1997 (+44 1733 347 007 from outside the UK). Lines are open 24/7 and our advisers are available from 7am to 11pm if you'd like more information.

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

Frequently Asked Questions

Key points on money transfers

  • 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.

Where next?

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.