Halifax has clarified its transfer rules warning as it warned that customers could face fees when making certain transactions.
A customer contacted the bank over social media with the request: “I want to send £50 to my wife by credit card.”
The bank initially replied to warn that it’s “not possible” to transfer funds from a credit card account to another person.
They further explained: “To give your wife £50 from your credit card, you’ll only be able to do this by withdrawing it from an ATM and handing it to her.”
The Halifax website states that similar to how debit cards work, you can withdraw money from a cash machine using a credit card, which is known as a cash transaction.
But the bank issued a warning that doing so would incur some extra charges for the customer. Halifax stated: “Please note however, this will incur a cash fee and interest being applied to your credit card.”
Guidance from the bank website warns that this type of transaction is “an expensive way to borrow”, although it can be useful in emergencies.
A transaction fee of up to 5% could apply when making a withdrawal with a credit card. Customers are urged to check the terms and conditions for their account before taking out cash in this way.
It’s also worth noting that Halifax does not offer credit card cash withdrawals over the counter at Halifax branches. You can read more about how cash withdrawals from credit card accounts work here.
There are eight types of credit card transactions that Halifax classifies as cash transactions:
- Gambling transactions, such as at a casino, betting outlet or bookmakers, and buying online lottery tickets or gaming chips, share trading or spread betting
- Buying coins, banknotes or digital currency
- Sending money orders or wire transfers (other than balance transfers or money transfers)
- Using your available credit to obtain cash (e.g. at an ATM or at an over-the-counter service)
- Online trading such as share dealing or investments
- Paying government or court fines, enforcement penalties, fees or costs
- Purchasing or topping up electronic money, payment cards, mobile wallets or account dashboard services
- Buying foreign currency.
