Halifax alert over 'expensive' fees after £50 transaction request

Nicholas Dawson
·2-min read
A Halifax branch
-Credit:Google


Halifax has issued a warning about "expensive" fees that customers could incur with certain transactions. This comes following a customer enquiry on social media. They requested: "I want to send £50 to my wife by credit card."

The bank first responded that transferring funds from a credit card to another person is "not possible". The savings giant went on to explain that to give someone money using a credit card involves withdrawing cash at an ATM and physically handing it over.

The Halifax website explains that while it's possible to take out money at a cash machine with a credit card, much like using a debit card, this type of cash transaction can come with extra costs. Halifax warned the customer: "Please note however, this will incur a cash fee and interest being applied to your credit card."

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The bank's guidelines describe such transactions as an "expensive way to borrow", recommending only to use them for emergency situations. Customers may face a transaction fee up to 5% for cash withdrawals made with their credit cards and are encouraged to review their account terms before proceeding with such withdrawals.

You can't make such withdrawals using a credit card at Halifax branches. More information on credit card cash withdrawals can be found here.

These are the eight types of credit card transactions that Halifax deems to be cash transactions:

  • Using your available credit to obtain cash (e.g. at an ATM or at an over-the-counter service)

  • Sending money orders or wire transfers (other than balance transfers or money transfers)

  • Buying foreign currency

  • Buying coins, banknotes or digital currency

  • Online trading such as share dealing or investments

  • Gambling transactions, such as at a casino, betting outlet or bookmakers, and buying online lottery tickets or gaming chips, share trading or spread betting

  • Paying government or court fines, enforcement penalties, fees or costs

  • Purchasing or topping up electronic money, payment cards, mobile wallets or account dashboard services.