Withdrawing cash and cash transactions

Taking a detailed look at using credit cards to withdraw cash.

If you need to, you can use most credit cards to withdraw money from a cashpoint. We call this a cash transaction. It’s usually one of the more expensive ways to borrow money on your credit card, so we recommend doing this only in emergencies.

  • The amount you can withdraw depends on your credit limit and current balance, as well as a daily cash limit for ATM use (disclosed in terms and conditions).
  • You may be charged interest from the date your credit card provider adds the transaction to your account.
  • Most credit card providers charge a cash transaction fee.

Withdrawing cash using your credit card is called a cash transaction

Withdrawing cash using your credit card is called a cash transaction

You can withdraw cash at a cashpoint with your credit card, just like you would with your debit card. However, you should consider other options first, as cash withdrawals can be an expensive way to use your credit card.

What other transactions count as a cash transaction?

Withdrawing cash is the most common type of cash transaction. But there are some other uses that also count, depending on your provider. For example, we include:

  • Using your available credit to obtain cash (e.g. at an ATM or at an over-the-counter service). 
  • Gambling transactions, using your card to make transactions at casinos, betting outlets and bookmakers, and buying online lottery tickets or gaming chips, share trading or spread betting.
  • Buying foreign currency.
  • Sending money orders or wire transfers (other than balance transfers or money transfers).
  • Buying coins, banknotes or digital currency.
  • Paying government or court fines, enforcement penalties, fees or costs.
  • Online trading such as share dealing or investments.
  • Purchasing or topping up electronic money, payment cards, mobile wallets or account dashboard services.

Please check the terms and conditions of your credit card for a comprehensive list of cash transactions

A closer look at cash transactions

You’ll be charged interest from the date a cash transaction is added to your account

With a card purchase, you won’t pay interest for a period if you pay your statement in full each month. Whereas, you’ll pay interest on a cash transaction as soon as your credit card provider adds the transaction to your account.

You’ll pay interest at your cash transaction rate

Before you make any cash withdrawal, check your statement or your card’s terms and conditions to make sure you’re happy with what your interest rate will be.

You will likely be charged a transaction fee

Every time you make a cash transaction, you will likely pay a fee. This fee can have a fixed minimum amount and may be up to 5% of the money you withdraw, depending on your credit card and provider.

Cash borrowing limits are usually lower

As cash transactions can incur more interest and fees than other transactions, credit card providers usually protect you by limiting the amount of cash you can withdraw. At Lloyds Bank, the daily ATM limit is set at £500, but this may vary between credit card providers.

Read more about credit card fees

When is a cash transaction useful?

As withdrawing cash using a credit card can be expensive, we recommend only relying on this in emergencies. For example:

  1. Say you’re eating dinner at a restaurant while on holiday.
  2. At the end of the meal, you realise you’ve run out of cash and the restaurant doesn’t accept cards.
  3. As you only have your credit card with you, you decide to go to a nearby cashpoint and withdraw some money.
  4. As you’re abroad, you may pay both a cash transaction fee and a foreign exchange fee.
  5. You’ll also be charged interest at your cash transaction rate from the date it is added to your account.

If you withdraw cash abroad, you’ll likely pay an extra fee

When you withdraw cash abroad, you’ll most likely be charged two different transaction fees for doing so:

Your regular cash transaction fee

As we’ve mentioned above, this can be a percentage of the total money withdrawn. This is a charge for withdrawing cash. 

A foreign exchange fee

Sometimes called a foreign currency fee, this is also usually a percentage of the money you withdraw. 

Using a credit card abroad

Frequently Asked Questions

Key points on cash transactions

 
  • If you use your credit card to withdraw money from a cashpoint, this is called a cash transaction.
  • Unlike with card purchases, you’ll be charged interest from the date the transaction is added to your account. You’ll most likely pay a transaction fee too.
  • Cash transactions are an expensive way to borrow, so we recommend using them for emergencies only.
  • Gambling, buying foreign currency and some other uses are also counted as cash transactions.
  • A cash transaction is one of four ways to use a credit card, including card purchases, balance transfers and money transfers. 

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