Money Transfer from Credit Card to Bank

BACKTOBACK

I have been looking at the cheapest way to get a money transfer from a credit card to a bank account. I have been using £6000 over 6 months just for comparison.
Regular offers from Virgin for money transfers but with a 4% fee (so instantly hit with a £240 fee) which would be quite high for the short term loan.
Looked at a TransferWise account and at the option to top-up the GBP balance with £6000 from a credit card and it showed a fee of around £18. I know once the balance is with TransferWise then it would be free to transfer the money from there to another current account.
So far this would save £222 doing it this way (£240 - £18) but would the transaction attract any additional charges from the Virgin Credit Card as a 'cash type' transaction or similar?

[Deleted User]

It would likely be treated as cash, so you'll need to factor in the fee and interest.

collins74

Agree, this is a cash withdrawal as far as the CC company treat it. 

funkycredit

Easiest way is to send it as a gift via PayPal - 100% free. 

I just had to send a family member over £5k and registered the card to my PayPal. Then I lifted the limits by having the code / £1 test done and then I sent the family member £5,000 as a gift so there was no charges. They then withdrew it to their account fine and dandy. 

I earned a few points in the process - and paid it off a few days later. But I wanted the points. 

It does not show as cash nor is it treated as cash. It shows as *paypal sales* on the online transactions statement. 

FaceHead

funkycredit said:

Easiest way is to send it as a gift via PayPal - 100% free. 

I just had to send a family member over £5k and registered the card to my PayPal. Then I lifted the limits by having the code / £1 test done and then I sent the family member £5,000 as a gift so there was no charges. They then withdrew it to their account fine and dandy. 

I earned a few points in the process - and paid it off a few days later. But I wanted the points. 

It does not show as cash nor is it treated as cash. It shows as *paypal sales* on the online transactions statement. 

In this case couldn't we just cycle money around on a cashback card and continue to earn points? And all money transfers should be out of business? I can't see the issue, but it seems too good to be true.

funkycredit

Well here's another £1500 I used on Sainsbury's card via PayPal - shows as sale and I'll get more points. However, I've not recycled money for points as such. Only sent gifts to family twice using PayPal to get myself some points. I'll not make it a habit - plus I've many cards, not just one. 

But the principle stands - a one-off might work fine, as it has twice for me on different cards. 

born_again

Just be very careful. If you do it too often it will flag up a check, as it looks like ML.

Fingerbobs

I've sent money to friends via PayPal a few times using various credit cards and prepaid cards as the funding source, and have never been charged any cash fees or interest, nor has the recipient been charged any fees.

Fighter1986

The only potential caveat here is as @born_again says it might flag up as ML.

I've only had this happen once, Natwest closed my current account the moment my friend transferred the paypal funds from his current account to mine. My account was immediately frozen and only after a fortnight was I able to attend the branch with photo ID and withdraw my balance as cash. They did not permit any other method of withdrawal. They sent me a letter advising that "RBS Group will not be offering you (me) banking facilities in the future".

No CIFAS marker was placed against me, however. So that's a saving grace

BACKTOBACK

I have done a £6000 money transfer from a Halifax credit card to current account with a zero fee but 4.9%apr. Then completed a balance transfer from Halifax to Santander which was zero interest and zero fee

Fighter1986

Nicely Done