How to Withdraw Money From Credit Cards - A Quick and Simple Guide

1. 2 popular ways to withdraw money from credit cards

There are 3 ways to withdraw money from credit cards that most people use: withdraw money through ATMs, at transaction offices or by calling the switchboard. Below are the specific steps of each method:

Method 1: Withdraw money from credit card at ATM

Conditions for withdrawing cash from credit cards at ATMs:

• Possessing a valid credit card and cash withdrawal limit. 
• Withdraw at ATMs with Visa and MasterCard logos. 

Steps to withdraw money from credit card at ATM

• Step 1: Insert the card into the ATM, enter the PIN, then select "Withdrawal".
• Step 2: Enter the amount to withdraw, click "Confirm" and check the transaction fee notice displayed on the screen. 
• Step 3: Click "Agree", print the statement if necessary and receive money. 

Note: You are only allowed to enter the wrong PIN code a maximum of 2 times. If in doubt, pause and wait for someone else to trade before trying again. If you enter the wrong PIN more than 3 times in a row, your card will be retained by the ATM. 

Advantages of withdrawing money from a credit card at an ATM: 

• Open 24/7, convenient anytime, anywhere. 
• Easy to do with simple operations.
• You can withdraw money at many different ATMs. 

Disadvantages of withdrawing money from a credit card at an ATM:

• Risk of card being locked in some cases. 

Method 2: Withdraw money from credit card at the transaction office

Conditions for withdrawing money from credit cards at the transaction office: 

• To withdraw cash from a credit card at a transaction office, you need a valid CCCD (used to open a card) and a credit card. 

Steps to withdraw money from credit card at transaction office: 

• Step 1: Go to the nearest bank branch/transaction office, present your ID card and get your order number. 
• Step 2: Meet the teller and request to withdraw money from your credit card. 
• Step 3: Follow the instructions to complete the necessary procedures. 
• Step 4: Receive cash after completing the procedure. 

Advantages of withdrawing money from a credit card at the transaction office:

• The withdrawal process is easy, just present your identification documents and credit card to the bank staff. 

Disadvantages when withdrawing money from a credit card at the transaction office:

• Need to wait and check in at the counter, which may take more time than withdrawing money via ATM. 

Thus, if you need to withdraw money from a credit card, the fastest and simplest way is to withdraw money through an ATM, because this method saves time and the procedure is simple. Whichever way you choose, remember that withdrawing cash from a credit card comes with high interest rates. Therefore, you should only do it when you really need it and have a timely debt repayment plan. 

2. Is there a fee for withdrawing cash from a credit card? 

All ways to withdraw cash from credit card fee. Cash withdrawal fee from credit card is up to 4%/total withdrawal amount and interest rate is about 20 - 30%/year (depending on each bank's policy, and depending on the time). 

The amount of interest payable at the end of the period is calculated according to the following formula: 

Interest = Withdrawal amount x Interest rate/365 x Number of withdrawal days

For example, a customer has a credit card payment due date of May 20. On May 3, the customer withdrew 5 million VND. With an interest rate of 30%/year and a cash withdrawal fee of 4%, the amount to be paid to the bank will be calculated as follows:

• Withdrawal interest (From May 3 to May 20, ie 17 days) = 5,000,000 x 30%/365 x 17 = 70,000 VND
• Cash withdrawal fee: 5,000,000 x 4% = 200,000 VND
• Total outstanding debt: 5,000,000 + 200,000 + 70,000 = 5,270,000 VND

The withdrawal fee will be deducted directly from the amount the customer withdraws on May 3. By May 20, customers need to pay the entire principal amount plus interest. 

Note: 

• The above interest rates are updated in December 2024 and may change from time to time.
• To update the latest interest rate news, please visit here SeABank.

3. Be careful when withdrawing money from a credit card 

Below are 3 important notes that you need to pay attention to when withdrawing money from a credit card:

• Forms of credit card withdrawal are not allowed: Currently, some non-bank units provide credit card withdrawal services with low fees and high limits, even up to 100% of the card limit. However, this is an illegal service and poses financial risks for cardholders. These units require personal information to perform virtual transactions, causing the risk of fraud. The bank has the right to revoke the card, block the card and reduce the credit score when detecting unusual transactions. 
• Limited withdrawal limit: The withdrawer is not allowed to withdraw more than 80% of the card's limit. At the same time, each ATM withdrawal must also comply with the limit of 50 tcome 200 million VND per day, and does not exceed 20 million VND each time. Therefore, if you need to withdraw a large amount of money, you will have to make many transactions and depend on the amount of money available in the ATM. 
• Impact on ability to pay: The amount withdrawn from a credit card will not be interest-free for 45 - 55 days, leading to an increase in the final balance. If you do not pay on time, you will be charged late fees and interest. If your finances are limited, you can pay the minimum outstanding balance (about 5%), but the remaining amount will still be charged interest. Therefore, it is necessary to make reasonable financial calculations to pay on time and avoid debt risks. 

4. Other forms to replace withdrawing cash from credit cards 

Below are 6 other ways to replace withdrawing cash from a credit card that you can refer to: 

• Use of reserve fund: Before investing or spending big, create a savings fund to prevent emergencies. The fund should ideally be enough to cover 3 months of living expenses. You can start by setting up a small amount of your monthly income to automatically deposit into a savings account. 
• Take advantage of the buy now and pay later feature from credit cards: Credit cards allow you to spend now, pay later, and keep cash for use when needed. Make sure to pay off the entire loan balance before the due date to avoid interest. Some credit cards have interest-free periods of up to 55 days. 
• Take advantage of the credit card installment purchase program: The credit card installment program helps you split payments into monthly installments, can choose between terms and 0% interest rate at affiliated stores. 
• Withdrawal of savings deposit before maturity: When you withdraw your savings deposit before maturity, you will be charged a non-term interest rate, lower than the initial interest rate. Although this is not the optimal option, the fees may be lower than withdrawing cash from a credit card. Compare fees to find the most economical option. 
• Overdraft loan: An overdraft loan allows you to spend more than your account limit at a lower interest rate than a credit card. This is a good solution for short-term loans without using a credit card. 
• Personal loan: Consumer loans do not require collateral, have high loan limits and terms from 12-48 months. The bank will rely on your reputation to grant loans with clear payment conditions. 

Withdrawing money from a credit card can help you solve short-term financial problems, but it also carries many risks in terms of fees and interest rates. Use your credit card wisely and always make sure to pay on time to take full advantage of incentives. To learn more about attractive interest rates from SeABank credit cards, please visit HERE or contact Hotline 1900599952 for advice and to create a new credit card!