Avoid costly charges on credit card withdrawals
With extortionate charges attached to cash withdrawals on credit cards, consumers in the UK are being urged to try and avoid making cash transactions and withdrawals on their credit cards in order to avoid these charges, using the card to make purchases directly onto the card instead. According to experts there is no need for consumers to make withdrawals on their credit cards these days because it is so easy to make purchases on the card at retailers all around the world.
Experts argue that consumers are paying over twenty pounds a year in fees for every one hundred pounds withdrawn on their credit cards, with fees charged at far higher rates than for purchases. Those making regular cash withdrawals can therefore end up paying a fortune in fees and charges for the privilege, with the average APR on cash withdrawals standing at over twenty one percent.
Because of the charges implemented by credit card companies for each cash withdrawal made on the card consumers can end up paying a fortune by making regular cash withdrawals. However, many do not notice how much they are paying in fees because each charge amounts to just over two pounds on average for each withdrawal. It is only when the consumer adds up the number of charges over the course of the year that he or she will realize just how much has been wasted on simply withdrawing cash.
One expert stated that it is all too easy to use credit cards to make purchases directly these days, which means that consumers no longer need to really use the cards to make cash withdrawals except in an emergency. He added: "Card firms argue that credit cards are for purchases rather than for withdrawing cash so they charge a premium for those who use them for cash."
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