You may hear that with credit cards you can withdraw cash when you urgently need cash. It seems easy and fast, but withdrawing cash using credit cards comes with a price tag attached. In this article, you will learn how to withdraw cash from an AEON credit card or CIMB credit card or Maybank credit card, how much it costs you to do this and learn more about smarter alternatives to making the correct withdrawal of cash.
Cash Withdrawal Process Using a Credit Card
You can use your credit card to get cash either at an ATM or at a bank counter. But withdrawing cash isn’t the same as buying goods or services using your credit card. When withdrawing cash from a credit card, you’re using your credit line to access cash that will have applicable interest and fees.
Preparation before withdrawing cash
Before withdrawing cash you need to ensure a few things:
- Check Your Limit: Check if a credit card has a limit for withdrawing cash. Cash withdrawals are normally allowed up to 70-80% of the limit.
- Know the Costs and Interest: Cash withdrawals usually come with a withdrawal fee and will generally attract higher interest than spending on purchases—so know what those costs are before you withdraw.
- Choose the Right ATM or Bank Counter: Ensure that the ATM or bank counter you are using is able to accept your credit card, especially if you are using AEON, CIMB, or Maybank credit cards.
Credit cards from most banks, AEON, CIMB and Maybank credit cards are eligible for cash withdrawal. However, do check that your credit card is activated that that those ATMs offer to make cash withdrawals using Visa or Mastercard logo.
Cash Withdrawal via ATM
Using an ATM to withdraw cash is the simplest way to access cash using your credit card. However, it is worth knowing the steps needed and the costs associated. Here’s how it works.
General Steps for Cash Withdrawal at ATM
The exact steps for using a credit card at an ATM will vary somewhat depending on the brand of card and style and type of ATM, but generally will include the following steps:
- Insert Card: Insert your credit card into the ATM.
- Choose Language, Enter PIN: Choose the desired language and enter your credit card PIN.
- Select “Cash Advance”: At the menu select the option marked “Cash Advance” or “Credit Card.”
- Enter Amount of Cash: You’ll be asked how much you want.
- Retrieval: The money is dispensed and the cost charged to your credit card account.
Tip: Know the cash withdrawal charge before withdrawing cash from a Maybank credit card (or any bank). Normally every cash withdrawal will be charged a fee that is 5% of the amount withdrawn or RM20, whichever is higher.
Common Missteps when Withdrawing From a Bank
- Ignoring Fees and Interest: Taking cash out is usually high interest and expected rapid repayment make it important to be aware of how much it is going to cost.
- Withdrawal on Impulse: Don’t take money out if you aren’t sure how it is going to affect your situation, you don’t want to be stuck with a higher bill.
Cash Withdrawal at Bank Counters
Apart from cash withdrawal via ATMs, cash withdrawals can also be done at counters of bank branches. While perhaps easier for some people, cash withdrawal at the counter comes with its own limitations.
Cash Withdrawal at Bank Counter
To withdraw cash at the counter, you have to go to the bank branch and explain your need to the bank officer. Different banks have different rules regarding cash withdrawals.
Steps To Withdraw at the Counter:
- Visit the relevant bank’s counter where your card was issued. You can use a CIMB or a Maybank as examples.
- Inform the bank officer that you wish to do a withdrawal using your CIMB, a Maybank or whatever credit card.
- Fill in a cash withdrawal form and submit it along with your credit card.
- Withdrawal amount is usually capped at 80% of the credit limit.
Popular Credit Cards in Malaysia and Cash Withdrawal Methods
Many banks in Malaysia offer cash withdrawal facilities, with a varying interest rate and fee structure. Let’s look at some popular credit cards in Malaysia and their cash withdrawal methods.
AEON Credit Card
Members can make cash withdrawals from AEON Credit service counters or ATMs. Just note that they will incur cash advance fees and steeper interest rates.
How to withdraw cash from AEON credit card:
- Head over to an ATM that accepts AEON cards or an AEON Credit Service counter.
- Choose "Cash Advance" and then key in the amount you wish to withdraw.
- The cash will be dispensed and the amount withdrawn will be charged to your credit card account.
CIMB Credit Card
You can withdraw cash from your CIMB credit card at CIMB ATMs and bank counters. Also, you are able to withdraw cash from your CIMB credit card at ATMs that are members of the Visa or Mastercard networks.
How to withdraw cash without a CIMB card: If you lose your CIMB card, you can use online banking or the CIMB Clicks app to transfer cash to your bank account.
Maybank Credit Card
Get cash with your Maybank credit card through EzyCash, which enables you to withdraw a certain amount of funds and pay lesser interest as compared to regular cash withdrawal.
How to withdraw cash from Maybank credit card:
- Log on to Maybank2u and choose “Get EzyCash”.
- Specify the cash amount and select a repayment plan.
- Follow the steps to complete application details.
Cash Withdrawal Fees and Interest Rates
Any cash advance made through credit card will incur a withdrawal fee and high rate of interest. For Maybank credit cards, cash withdrawal fee is roughly 5% of the amount withdrawn or a minimum of RM20. Interest charged from the date of withdrawal.
These extra charges will weigh heavily on your credit card bill if you don’t immediately wipe them off. Therefore, you should know these charges before thinking of withdrawing cash with a credit card.
Cash Withdrawal Alternatives: Transferring Money to a Bank Account
If you want to withdraw cash with a credit card but want to avoid high fees charged in an ATM, you can choose to transfer money from your credit card to your bank account via online banking or an app.
How to send money from your credit card to your bank account:
- Log on to your online banking.
- Choose Transfer, select your credit card as the “From” option.
- Select your bank account to transfer the funds to, enter the amount you want to send.
- Confirm the transaction using the TAC sent to your mobile phone.
Instant loans can also be an alternative if you need cash with lower interest rates and more flexible repayment periods.
Conclusion
Withdrawing cash with credit cards like AEON, CIMB or Maybank credit card is an easy option when money is needed fast. On the other hand, cash withdrawals come with hefty fees and immediate interest, so make sure you know the associated cost before proceeding with a withdrawal. Possibly instant loans and transferring money to banks could be smarter alternatives to prevent yourself from becoming severely enthralled.
FAQ
Can I withdraw cash from a CIMB credit card without PIN?
If you do not have a CIMB card PIN, you can create a temporary PIN via CIMB ATM or CIMB Clicks.
What’s the credit card cash withdrawal limit?
Cash withdrawal limits: Your withdrawal limit will typically be around 70%-80% of your credit limit. For instance, if your credit limit is RM10,000, you can withdraw up to RM8,000.
How can I avoid high costs when withdrawing cash using a credit card?
Make sure you understand the fees and interest charged before making a withdrawal, and try to repay as soon as possible to avoid high interest.