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Withdrawing cash and cash transactions
In the same way you’d use a debit card, most credit cards allow you to withdraw money from an ATM, which is known as a cash transaction.
A closer look at cash transactions
- What’s the interest rate?
So you understand the potential costs, check your latest credit card account terms and conditions before making a cash transaction.
- When does interest apply?
Unlike card purchases, which could be interest free for up to 56 days when you repay your statement balance in full every month, interest will apply to cash transactions from the transaction date.
- Do transaction fees apply?
A cash transaction fee of up to five percent could apply, so check your latest credit card account terms and conditions to understand the potential costs.
- Is there a withdrawal limit?
At Halifax, the daily ATM withdrawal limit is £500, but other lenders and ATM operators can set their own limits. To avoid additional charges, make sure you stay within your credit limit.
When a cash transaction could be useful
As withdrawing cash with a credit card can be an expensive way to borrow, it’s probably best suited to emergencies. Here’s an example:
Frequently asked cash transaction questions
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No. Once you’ve withdrawn cash using your credit card, transactions you make are not protected under Section 75 of the Consumer Credit Act 1974.
Only purchases made with your credit card, over £100 and up to £30,000, are covered.
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No, some credit cards also give you the option to request a money transfer:
- Move money from your credit card account to your UK current account.
- Helpful for managing cash only purchases or unexpected bills.
A summary on cash transactions
If you use a credit card to withdraw money at an ATM, that’s a cash transaction.
- Unlike card purchases, interest will apply from the date a cash transaction is made.
- Cash transaction fees might apply. Other fees could apply to transactions made abroad.
- Cash transactions are an expensive way to borrow, but could be handy in an emergency.
- Buying foreign currency and gambling transactions are other examples of cash transactions.