Credit cards provide convenience, security, and transaction processing capabilities almost anywhere when it comes to managing your finances. When you need cash in an emergency, you can use it to make cash. But how much can you actually generate per day, and what is the best way to cash in on your credit card?

Let’s answer these important questions in this article.

credit card daily cash withdrawal limit

When withdrawing cash from a credit card (신용카드 현금화), the daily limit depends on several factors. This includes the issuer of the credit card, the type of card, and the specific financial institution that you want to withdraw. Usually, daily withdrawal limits are set to protect cardholders and banks from potential fraud or abuse.

Bank ATM: In Korea, most major banks, including KB Kookmin Bank, Shinhan Bank, and Woori Bank, allow cash withdrawals from credit cards through ATMs. However, the daily withdrawal limits vary. Generally, the limits vary from 1 million won to 3 million won per day, but they can vary depending on the card type and the bank. They can also vary depending on the limits that the payment site limits.

Online Platform: Some online payment platforms also offer credit card cash withdrawal services, which have a lower daily limit than bank ATMs. These services can be limited to a maximum of about W1 million per day, but they can be more convenient for small cash withdrawals or converting digital small payments into cash.

Estimated commission for cashing credit cards

Withdrawing cash from a credit card isn’t as simple as withdrawing from a debit card, and fees are almost always charged. Here’s what to expect:

ATM Fee: Most ATMs charge a service fee for cash services, typically around 1% to 3% of the total transaction amount. This fee may be higher if you use an international credit card or withdraw from an ATM that is not affiliated with the card issuer.

Interest Rate: In addition to ATM fees, interest is often immediately accrued on credit cards’ cash withdrawals, unlike regular purchases that have a grace period. Interest rates on cash withdrawals vary from 15% to 25% depending on the credit card provider.

Platform Fee: If you use an online platform to cash in small payments or small payments on your credit card, you will usually have to pay a higher fee between 10% and 15% of the transaction amount.