Credit cards 'treat gambling as cash withdrawals'

By Sarah Engle, Thu 20 May 2010 - Published in Credit Cards

Credit card users should be attentive to which transactions are treated as cash withdrawals by their providers, it has been suggested.

Research by price comparison website moneysupermarket.com found that some credit card companies regard certain activities as being the same as a cash withdrawal and attach higher APRs to them.

The study shows that all of the UK's main credit card providers class gambling using their products as a withdrawal, but other common activities are treated in the same way.

Buying foreign currency, the purchase of traveller's cheques, electronic money transfers and postal orders are all viewed as cash withdrawals and attract higher rates of interest with some of the country's credit cards.

Kevin Mountford, head of banking at moneysupermarket.com, commented: "Credit card users have to be careful how and where they use their card. The vast majority of consumers are aware that withdrawing cash on a credit card can be a costly exercise and should be avoided."

Earlier this week, the website claimed that holidaymakers could save money if they used prepaid currency cards rather than credit cards when taking out cash in foreign destinations.

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