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.

What’s a cash transaction?

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

  • 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.

For full details about cash transactions, 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 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.

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 transaction 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 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:

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 transaction and foreign exchange fees might apply. Interest will also be charged from the date of the transaction.

Frequently asked cash transaction questions

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.