You can use a Spanish credit card to send money to the UK through various online transfer services, but this method often comes with higher costs.
Cash advance charges, immediate interest fees, and less favourable exchange rates make credit cards more suitable for smaller, urgent payments rather than larger transfers.
For larger transactions, international bank transfers are a better option. They typically offer lower fees, more competitive exchange rates, and a straightforward process, ensuring more of your money reaches its destination.
The Convenience And Cost Of Using a Credit Card
Picture this: You need to send money to the UK quickly, maybe to cover an emergency bill, support a family member, or even pay for last minute travel arrangements.
Using your Spanish credit card seems like the easiest solution. After all, it’s already in your wallet, and payment apps like PayPal and Western Union accept it.
But is it the best choice?
While credit cards offer speed and convenience, they come with significant downsides, particularly when it comes to fees.
Processing fees alone can range from 2-4% of the transfer amount. For a €1,000 transfer, that’s €20-€40 gone before you even account for exchange rate markups.
And it doesn’t stop there.
Most credit card companies treat international money transfers as cash advances, meaning you could face additional fees and immediate interest charges, often at higher rates than standard purchases.
When Is a Credit Card a Good Option?
Let’s be honest: credit cards aren’t the cheapest way to send money, but they do have their place.
Emergency Situations: Need to send money immediately? A credit card allows for near-instant transfers through services like PayPal or Western Union.
Small Transfers: For amounts under €500, the higher fees might feel less impactful compared to the convenience. However, for larger transfers, these fees and interest costs quickly add up, making credit cards a less practical option.
The Hidden Costs of Credit Card Transfers
Here’s a breakdown of what you might face:
Processing Fees: Most services charge 2-4% of the transfer amount for credit card payments.
Exchange Rate Markups: Credit card providers often offer less favourable rates, meaning you lose more in the conversion.
Cash Advance Charges: Depending on your card issuer, you might pay an additional fee, typically 3-5% of the amount, plus interest from the moment the transaction occurs.
For example, transferring €1,000 could cost:
- €40 in fees (processing and cash advance)
- €20+ lost to exchange rate markups
That’s €60 gone before the money even lands in the recipient’s account.
Better Alternatives for Larger Transfers
If you’re transferring a significant amount, consider these alternatives:
Currency Brokers: Services like Key Currency provide better exchange rates, lower fees, and personalised support for larger sums. They also offer rate-locking options, helping you avoid market fluctuations.
Bank Transfers: Although slower, bank transfers are often more cost-effective and secure, especially for one-off payments.
Online Platforms: For medium-sized transfers, services like Wise offer transparent fees and mid-market exchange rates, making them a more affordable option than credit cards.
Summary
Using your Spanish credit card to send money to the UK is possible but comes at a price.
It’s a good option for small, urgent payments where speed is the priority. For larger amounts, however, currency brokers or bank transfers provide far better value.
Choosing the right method ensures your money goes further, whether you’re covering an emergency or sending significant funds abroad.