Halifax has issued a clear warning to its customers regarding a specific £2,500 rule for withdrawing cash, following a direct query from a customer on social media platform X, formerly known as Twitter.
The Daily Cash Limit Explained
A customer publicly asked the bank about its policies for over-the-counter cash withdrawals and whether a set amount existed for how much could be taken out. In a definitive response, Halifax stated: "The limit per day is £2,500 without notice." The bank further clarified that any request to withdraw an amount exceeding this threshold requires a pre-order with a minimum of 48 hours' notice.
What Counts as a Cash Transaction?
Many customers may be unaware of the range of activities that Halifax classes as cash transactions on credit cards, which often incur immediate interest and fees. The bank's list is extensive and includes:
- Using your available credit to obtain cash from an ATM or over the counter.
- All forms of gambling, including transactions at casinos, betting outlets, and for online lottery tickets or gaming chips.
- Activities like share trading, spread betting, and buying foreign currency.
- Sending money orders or wire transfers (excluding balance transfers).
- Purchasing coins, banknotes, or digital currency.
- Paying government or court fines and enforcement penalties.
- Online trading and purchasing or topping up electronic money or payment cards.
Halifax explicitly states on its website: "For full details about cash transactions, check the terms and conditions of your credit card account." The bank also highlighted a key branch service limitation, noting, "we don’t offer credit card cash withdrawals over the counter at Halifax branches."
Understanding the Potential Costs
The financial implications of these cash transactions are significant. Unlike standard card purchases, which can be interest-free for up to 56 days if the statement balance is repaid in full each month, interest applies to cash transactions from the very date of the transaction.
For everyday ATM use, Halifax enforces a daily withdrawal limit of £500, though it notes that other lenders and ATM operators can set their own, potentially lower, limits. The bank urges customers to stay within their credit limit to avoid additional charges.
For those travelling abroad, the costs can multiply. Withdrawing cash using a credit card overseas can incur both a cash transaction fee of up to five percent and a separate foreign exchange fee, which is usually a percentage of the transaction amount. Halifax strongly advises customers to check their latest credit card account terms and conditions to fully understand all potential costs before proceeding.
