Credit Card Cash Limits: How Much Can You Withdraw Per Day?

When it comes to managing your finances, credit cards offer convenience, security, and the ability to handle transactions almost anywhere. However, there are times when you need to access physical cash from your credit card account, whether it’s for an emergency, a service that doesn’t accept cards, or cash conversion of micropayments. But how much can you actually withdraw per day, and what are the best practices for cashing out credit cards?

Let’s answer these important questions in this article.

Daily Cash Withdrawal Limits for Credit Cards

When it comes to withdrawing cash from your credit card, the daily limit will depend on several factors. These include the credit card issuer, the type of card, and the specific financial institution where you are making the withdrawal. Typically, daily withdrawal limits are put in place to protect both the cardholder and the bank from potential fraud or overuse.

  • Bank ATMs: In South Korea, most major banks such as KB Kookmin Bank, Shinhan Bank, and Woori Bank allow cash advances from credit cards through their ATMs. However, the daily withdrawal limits vary. In general, limits tend to range from 1 million to 3 million KRW per day, but this can differ depending on the card type and bank.
  • International Cards: For foreigners or those using international credit cards, the withdrawal limits might be slightly lower due to additional fees or restrictions. Always check with your bank before traveling to South Korea to ensure your card is eligible for cash withdrawals and to understand your specific limit.
  • Online Platforms: Some online payment platforms also offer credit card cash-out services, often with lower daily limits than bank ATMs. These services may be capped at around 1 million KRW per day but can be more convenient for smaller cash-outs or converting digital micropayments into cash.

Fees to Expect When Cashing Out Credit Cards

Withdrawing cash from a credit card (신용카드 현금화) is not as straightforward as withdrawing from a debit card, and fees are almost always involved. Here’s what to expect:

  • ATM Fees: Most ATMs will charge a service fee for cash advances, typically around 1% to 3% of the total transaction amount. This fee may be higher if you’re using an international credit card or withdrawing from an ATM not affiliated with your card’s issuer.
  • Interest Rates: In addition to ATM fees, cash advances from credit cards often come with interest charges that start accumulating immediately, unlike regular purchases which may have a grace period. Interest rates for cash advances can range from 15% to 25%, depending on your credit card provider.
  • Platform Fees: If you are using an online platform to cash out micropayments or smaller sums from your credit card, expect to pay higher fees, typically ranging from 5% to 10% of the transaction amount.

Best Locations for Cash Withdrawals

If you need to cash out from your credit card while in South Korea, it’s important to know the best locations to do so. Here are some of the top options:

  • Bank ATMs: The most reliable method for cashing out credit cards is through major bank ATMs. Banks like KB Kookmin, Hana Bank, and Woori Bank offer user-friendly ATMs that support credit card cash advances. These machines are also available in English, making them convenient for expats and travelers.
  • Convenience Stores: Some convenience stores, including GS25 and CU, also offer ATM services that allow for credit card cash-outs. However, be aware that these machines may have lower daily limits and higher fees compared to bank ATMs.
  • Online Platforms: If you’re dealing with micropayments or smaller amounts, platforms like Toss, Bangultickets allow for quick cash-outs without the need to visit an ATM. Just keep in mind that these platforms often come with substaintial fees and lower daily limits.

Conclusion

Knowing your daily withdrawal limits and fees for cashing out credit cards is crucial for managing your finances effectively, especially when traveling or handling micropayments in South Korea. By understanding the fees, limits, and available options, you can make smarter decisions when accessing physical cash from your credit card. 

Always check with your credit card provider and choose the most cost-effective method to avoid unnecessary expenses. Whether you’re using bank ATMs or online platforms, having a clear grasp of these details will ensure you manage your money efficiently.