Money Transfer Fees: What Moving Cash Costs

A money transfer credit card lets you move money from your card into your own bank account to spend as cash, and it usually comes with a fee¹. That fee is normally a percentage of the amount you move, commonly between 2.99% and 5%². On a £500 transfer at 3%, you would owe £515 on the card: the £500 you received plus £15³.

The fee is not deducted from the money that lands in your account. It is added to your credit card balance, so you repay it along with the transfer itself³. That matters because the fee starts sitting on the card straight away, and if the transfer is not on a 0% deal, interest can build on it.

Money transfers are not the same as balance transfers, and they are not the same as taking cash out of an ATM. Each has its own fee, its own interest treatment and its own effect on your credit file. This page sets out what each one costs, how the fee is worked out, and what to check before you confirm a transfer.

Money transfer fees: usually around 3% to 5% of the amount

The fee on a money transfer is a percentage of what you move, and the range across providers is wide. HSBC states that transfer fees are usually between 2.99% and 5%². Which? puts a money transfer credit card fee at usually around 4%¹, and its guidance on 0% money transfer cards describes a one-off fee of normally up to 5% to move money from card to bank account⁵.

The percentage is not the whole story. Some cards apply a minimum charge, so a small transfer costs more than the headline rate suggests. Vanquis, for example, charges 3.00% of the amount transferred or £3, whichever is greater, on its Credit Builder card⁴. There is also usually a floor on how little you can move: HSBC states the minimum amount you can transfer into your account is £100², and Lloyds Bank says the minimum you can usually transfer is £100³.

Because the fee is a percentage, the cost scales with the amount. A £300 transfer at 2.99% carries a fee of £8.97, leaving a card balance of £308.97². Lloyds Bank's own example is a £500 money transfer with a 3% fee, totalling £515 on the credit card³, and it gives a second example of a 3% fee on a £1,000 transfer costing £30³.

What drives the difference between one card and another is the deal attached. A card offering a long interest-free period on the transferred money tends to price that in through the fee, while a shorter or plainer deal may charge less. The fee is set by the provider and disclosed in the card's terms, so the only reliable figure for a particular card is the one that card states.

How the fee is added to what you owe

The fee does not come out of the money you receive. It is added to your credit card balance, so the amount you owe rises by the transfer plus the fee³. In the £300 example, the £8.97 fee turns a £300 transfer into a £308.97 balance².

That has two consequences. First, the fee is borrowed money from the moment it is added, so if the transfer is not covered by a 0% offer, interest accrues on it. Second, the fee counts towards your credit limit, which means a transfer can push you closer to your limit than the amount you asked for suggests. Going over your credit limit usually triggers a charge⁷.

The same principle applies elsewhere in credit: costs get added to the debt rather than billed separately. A creditor applying for a charging order pays a court fee and adds it to the debtor's debt⁸. On credit cards generally, you will usually be charged for going over your limit, for using the card abroad and for late payments⁷.

Money transfer or balance transfer: how the fees differ

Both move money, but they move it to different places and the fees are priced differently.

A balance transfer moves existing card debt from one card to another. Most credit card providers charge 2 to 3% of the amount you are transferring as a one-off fee⁹, and Citizens Advice puts the handling fee at around 2% of the balance¹⁰. Which? reports that most cards charge a fee to transfer the balance, typically around 3%¹, and that the longest 0% deals often come with a balance transfer fee typically around 3% to 3.5%¹¹. Some cards charge nothing, while others charge up to 5% for each balance transfer¹². Experian says the transfer fee tends to be at least 3% of the amount you are transferring, though a lower or fee-free deal may be available¹³.

A money transfer moves money from your card into your bank account. The fee is a percentage of the amount you transfer and is added to the balance³, and lenders often charge a fee for the money transfer with a money transfer card¹⁴. Experian notes that you may need to pay a fee to the lender¹⁵.

The practical difference is what the money does. A balance transfer pays off debt you already have on another card. A money transfer puts cash in your account, which some people use to pay off an overdraft¹⁶. Both add to what you owe on the card you are using, and both usually carry a fee.

Is a money transfer fee the same as a cash withdrawal fee?

No, and the differences matter more than the headline percentages suggest.

Withdrawing cash on a credit card carries a fee that can be up to 5% of the money you withdraw, depending on your card and provider, and it can have a fixed minimum amount¹⁸. Citizens Advice puts the cash handling fee at around 2% of the amount you withdraw¹⁰. Which? reports that you can expect to pay a fee of around 3%, minimum £3, when you take money out of an ATM with a credit card¹⁹.

The bigger difference is interest. Cash withdrawals attract a withdrawal fee, as well as a higher APR, and do not enjoy the interest-free period available for purchases¹. You are charged interest from the day you took the money out²⁰. A money transfer, by contrast, can sit on a 0% rate period, which is the whole point of a money transfer card¹⁵.

There is also a credit file difference. Cash withdrawals are recorded on your credit report¹. If you withdraw cash abroad, you may be charged a foreign transaction fee on top of the usual cash advance fee²¹, and most credit cards add a foreign transaction fee of around 3% on non-sterling purchases and cash withdrawals¹.

The 0% period: longer deals tend to carry higher fees

Money transfer cards typically offer a 0% rate period, though you may need a good credit score to be approved¹⁵. The trade-off is the fee: 0% money transfer cards normally charge a one-off fee of up to 5% to move money from the card to your bank account⁵.

The same pattern runs through the balance transfer market, which gives a sense of how the pricing works. The longest 0% balance transfer deals currently on the market are 38 months¹, and some deals offer up to 34 months interest-free²². Those long deals usually come with a fee: the longest deals often carry a balance transfer fee typically around 3% to 3.5%, and are usually reserved for applicants with the strongest credit scores¹¹. Some cards offer shorter 0% periods but for a lower or even no balance transfer fee¹³.

Shorter deals can cost less. Some cards offer shorter 0% periods but for a lower or even no balance transfer fee²³. Many credit card companies offer 0% transfer fees as a way to encourage applications²⁴, and some cards do not charge a balance transfer fee at all, while others charge up to 5% for each balance transfer¹².

Two conditions are worth knowing. Most 0% interest deals only last for a number of months, and a lender may be able to end a 0% deal early if you fall behind with regular payments²⁵. Money transfer cards also usually require a minimum payment each month¹⁵.

Do all credit cards let you make money transfers?

No. Money transfers are a feature of selected cards, not a standard one. Lloyds Bank states that with selected credit cards you can transfer funds to your UK current account²⁶, and it notes that money transfers may not always be offered immediately with a new credit card by some providers²⁶.

If you want to move money from a card to your bank account, you need a card that lists money transfers as a feature. Money transfer credit cards enable the user to pay directly into their own bank account, and some give lengthy 0% interest-free periods¹⁶. Experian describes money transfer cards as typically offering a 0% rate period, with approval often depending on having a good credit score¹⁵.

The amount you can move is normally limited by your credit limit, and the minimum is usually £100². Because the fee is added to the balance, a transfer uses more of your available credit than the amount you receive.

When do I find out the exact fee for my transfer?

Before you confirm it. Lloyds Bank states that the fee is usually a percentage of the transfer amount and will be confirmed before you go ahead⁶. That means you see the cost at the point of approval, not afterwards.

Timing of the money itself is separate. Once your credit card provider approves the transfer, the money should arrive in your current account by the next working day, and can take up to three days².

Where a transfer is made into a wallet rather than a bank account, the timing of the fee can differ: any credit card fee incurred for transferring funds to a wallet is incurred immediately upon the money being credited, and the lender is notified before the transfer²⁷.

What protects you, and where it stops

The main protection is disclosure: the fee is confirmed before you go ahead⁶, and the card's terms set out the charges that apply⁷. If a provider charges a fee you were not told about, or applies terms differently from what was agreed, you can complain to the provider and, if unresolved, take the complaint to the Financial Ombudsman Service.

Section 75 protection is a separate matter. It applies to purchases made directly with a credit card, not to money transfers, so moving cash into your bank account does not bring a purchase within it. If you are using a money transfer to pay off an overdraft, the transfer itself is not a purchase from a supplier.

Where the fee becomes a problem is when the transfer adds to debt you cannot clear. Free, impartial help is available: StepChange, National Debtline and Citizens Advice all provide free debt advice, and MoneyHelper offers free guidance on banking and switching accounts²⁸. If you are in Scotland or Northern Ireland, the same free services operate, and Citizens Advice Scotland and nidirect set out the rules that apply there²¹.

If your card has moved to another provider

Card ranges do change hands, and that can affect what you can do with a transfer. Virgin Money's business, including its credit cards, transferred to Nationwide on 2 April 2026, making Nationwide the card provider³⁰. Balance transfers between Nationwide and Virgin Money credit cards ended at 23:59 on 2 April 2026, so customers can no longer transfer balances between the two card ranges³¹.

What did not change is the terms. Virgin Money states there are no changes to your terms as a result of the transfer, including your limit, minimum payment and interest rate³¹. Transfers from other UK banks or building societies are still allowed³¹.

If a card you hold changes provider, the practical questions are whether your terms changed, whether any transfer routes closed, and who now administers the account. In this case the answers are that terms stayed the same, transfers between the two brands stopped, and Nationwide is now the provider³⁰.