Credit card cash advance fees on the rise

Cash advance fees on many popular credit cards have increased over the past five years, making it more expensive to withdraw cash or complete similarly processed transactions.


Many credit cards allow cardholders to withdraw money, for example from an ATM, the same way you would use your PIN and a debit card.

However, users could be hit with immediate cash advance fees, as well as the usual APR from the minute you withdraw money, which means it can be an expensive way to borrow money. the money.

Certain other credit card transactions may also be processed as a cash advance, including the purchase of foreign currency and those related to betting or gambling.

Overall, withdrawing money from your credit card should be considered a last resort and only in an emergency.

A credit card comparison by business insights and reviews site Defaqto found that over the past five years several providers have increased their cash advance fees.

According to Katie Brain, consumer banking expert at Defaqto, three of the top 10 credit card providers have increased their cash advance fees, while the Post Office and two risky cards have also done the same:

The Halifax reference is for the credit card, not the Halifax Clarity credit card.

Brain said: “Making a cash withdrawal will now cost you an extra 99p to £2 per £100 withdrawn, so it’s worth looking into which credit card is the most profitable for you, as some cards don’t have no fees for cash withdrawals The Barclaycard Rewards credit card and the Halifax Clarity credit card have no cash advance fees.

Moneycomms’ Andrew Hagger added that Halifax, MBNA and Lloyds Banking Group now all charge 5% with no minimum amount.

He said: “MBNA charged £5 for many years with Virgin Money (which at one time was part of MBNA). Lloyds and Halifax appeared to have adopted the 5% MBNA rate after Lloyds took it over.

However, Defaqto also found that the number of cards that do not charge cash advance fees has increased from four in August 2017 to seven today.

The following providers and products do not charge cash advance fees:

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