Credit Card Cash Withdrawals: Fees, Interest and Using ATMs Abroad

By QuidRadar Team · Updated 30 October 2026

You can use most credit cards at a cash machine, but it's one of the most expensive ways to use one. A cash withdrawal (also called a cash advance) is treated differently from a purchase, and the difference shows up as fees and interest that start straight away.

Key takeaways

  • Most cards charge a cash fee, usually a percentage with a minimum, such as 3% (minimum £3).
  • Interest starts on the day you take the cash, often at a higher rate than purchases, even if you clear your bill in full.
  • Buying currency, gambling and some transfers can be treated as cash too.
  • Abroad, you may also pay a foreign transaction fee and a cash machine operator's charge. Always choose the local currency.
  • A fee-free debit card, or a travel card that waives cash fees, is usually cheaper.

This is general information, not financial advice.

How a cash withdrawal differs from a purchase

When you buy something on a credit card and pay your statement in full by the due date, you usually pay no interest at all. That's the interest-free period. Cash doesn't get it. Citizens Advice notes that interest on cash withdrawals is usually charged from the date of the transaction, and often at a higher rate than for purchases.

So a cash withdrawal has up to three costs:

  1. The cash fee, charged when you take the money out.
  2. Cash interest, building from day one until the balance is cleared.
  3. Abroad only: a foreign transaction fee on the converted amount, plus any charge from the cash machine operator.

How much does it cost? A worked example

Say you take out £200 on a card with a 3% (minimum £3) cash fee and a cash interest rate of 24.9% a year, and you pay it off in full 30 days later.

  • Cash fee: 3% of £200 = £6
  • Interest: roughly £200 × 24.9% ÷ 365 × 30 = about £4.09
  • Total: about £10.09 to borrow £200 for a month

Issuers calculate interest in different ways, so treat this as an illustration. Use the figures in your own card's summary box.

Examples from cards we list

When we checked in October 2026:

  • Santander's Cashback card listed a 3% (minimum £3) cash transaction fee.
  • Nationwide's balance transfer and purchase cards listed a 2.5% (minimum £3) cash fee with a 24.9% cash rate.
  • The Barclaycard Rewards card listed no cash withdrawal fee, though interest still applies from the day of the withdrawal.
  • M&S Bank listed no cash advance fee when you use the card to buy M&S Travel Money.

These terms change, so check the issuer's page before you rely on them.

What counts as a cash transaction?

It isn't just cash machines. Depending on your issuer, cash-type transactions can include:

  • Buying foreign currency or travellers' cheques at a bureau de change.
  • Gambling transactions, including some lottery and betting payments.
  • Buying money orders or loading some prepaid cards and e-wallets.
  • Cashback at a till when paying by credit card, where offered.

Your card's terms list what your provider treats as cash. If in doubt, assume a transaction that turns credit into cash or near-cash will be charged as cash.

Using your credit card at a cash machine abroad

Cash withdrawals abroad can stack several charges:

  • Cash fee from your card provider.
  • Foreign transaction fee, unless your card waives it. Some travel cards waive this on cash too, but most still charge cash interest.
  • ATM operator fee: some machines add their own charge and must show it on screen.
  • Dynamic currency conversion (DCC): the machine may offer to charge you in pounds "at a guaranteed rate".

The Post Office's travel money guidance is clear: if an ATM offers to convert into sterling, choose the local currency instead. HSBC explains that with DCC the rate is set by the machine operator or their bank rather than by Visa or Mastercard, and is usually worse. Look for buttons labelled "without conversion" or "decline conversion".

For a full checklist, see Using a Credit Card Abroad: Fees, Exchange Rates and How to Save.

Does taking cash out affect your credit score?

A one-off withdrawal won't wreck your score. But cash use can be visible to lenders, and regular cash advances can be read as a sign of financial pressure. Cash also adds to your balance, which raises your credit utilisation. See Credit Utilisation Explained: How Much of Your Limit Should You Use?

How repayments are applied

When your balance is made up of different types of spending, the law requires that payments above your minimum go towards the most expensive balance first. Cash is often charged at the highest rate, so paying more than the minimum clears it faster. Even so, interest builds every day until it's paid off. If you have taken cash out, pay it back as soon as you can.

Cheaper ways to get cash

  • A debit card from your current account. Many UK debit cards are free to use at UK cash machines, though some charge abroad.
  • A travel debit card or account that doesn't charge for overseas withdrawals, up to a limit.
  • Ordering currency in advance with a debit card, rather than on a credit card, where it could count as cash.
  • Paying by card where possible rather than withdrawing cash. Purchases get the normal interest-free period and Section 75 protection on eligible items.

If you need to borrow money rather than just access it, a money transfer card or a personal loan may be cheaper than cash advances. Compare the options in Balance Transfer vs Personal Loan: Which Is Better for Clearing Debt?

If you're relying on cash withdrawals

If you're using your credit card for cash to get through the month, that's a sign to get support early. MoneyHelper offers free, impartial guidance and can point you to free debt advice. Your card provider must also treat you fairly if you're in financial difficulty.

Frequently asked questions

Can I withdraw cash with any credit card?

Most UK credit cards allow cash withdrawals up to a cash limit, which can be lower than your overall credit limit. Some credit-builder cards set a low cash limit. Check your terms or app.

Is there an interest-free period on cash withdrawals?

Usually not. Interest on cash is normally charged from the date of the withdrawal, even if you pay your statement in full.

Is it cheaper to withdraw cash abroad on a credit card or a debit card?

Usually a debit card, especially one with no overseas fees. Most credit cards add a cash fee and charge interest from day one, even if they don't charge a foreign transaction fee on purchases.

Does buying foreign currency on a credit card count as a cash withdrawal?

Often, yes. Many issuers treat bureau de change purchases as cash transactions, with the cash fee and cash interest. Some retailers' own cards offer exceptions, so check first.

Should I choose pounds or local currency at a foreign cash machine?

Choose the local currency. If you choose pounds, the machine operator sets the exchange rate, which is usually less favourable.

This is general information, not financial advice. Fees and rates vary by card and can change, so check your provider's summary box.

Sources

Rewards & travel credit cards

Top 3 by the published figures – see all.