Withdrawing cash and cash advances

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 advance or transaction.

What’s a cash advance?

At Halifax the following credit card transactions are classed as cash advances:

  • Withdrawing cash from an ATM or over the counter.
  • Buying physical currency, travellers cheques or digital currency, including top-up payment cards, digital wallets or account dashboard services.
  • Cash equivalents, like money orders or wire transfers (excluding credit card balance and money transfers).
  • Gambling transactions, including payments made at casinos, betting outlets and purchasing lottery tickets.
  • Paying government fines, enforcement penalties, fees or costs.
  • Share dealing or investment transactions.


For full details about cash advances, check the terms and conditions of your credit card account.

Just so you know, we don’t offer credit card cash withdrawals over the counter at Halifax branches.

A closer look at cash advances

 

  • What’s the interest rate?
    So you understand the potential costs, check your latest credit card account terms and conditions before making a cash advance 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 advances from the transaction date.
 
  • Do transaction fees apply?
    A cash advance 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.

Extra fees might apply when you’re abroad

If you withdraw cash using a credit card when you’re abroad, in addition to a cash advance fee, you might also be charged a foreign exchange fee. This is usually a percentage of the transaction amount.

It’s useful to know that travel credit cards offer tailor-made benefits, like low fees when you use your credit card outside of the UK, or for non-Sterling transactions. 
 

More on using a credit card abroad

When a cash advance 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:

You’re on holiday and enjoying a meal out at a restaurant. When you come to pay, you realise you’ve got no cash and the restaurant doesn’t accept cards.

You decide to go to a nearby cashpoint and withdraw some money using your credit card.

As you’re abroad, cash advance and foreign exchange fees might apply. Interest will also be charged from the date of the transaction.

Frequently asked cash advance questions
 

A summary on cash advances

If you use a credit card to withdraw money at an ATM, that’s a cash advance.
 

  • Unlike card purchases, interest will apply from the date a cash advance is made.
  • Cash advance fees might apply. Other fees could apply to transactions made abroad.
  • Cash advances are an expensive way to borrow, but could be handy in an emergency.
  • Buying foreign currency and gambling transactions are other examples of cash advances.

Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.