Banker: Rates range between 2.5 and 3% depending on the amount
Daily "interest" on cash withdrawals from credit cards
Traders were surprised by a significant increase in the interest rate after withdrawing cash from ATMs. Cinematographer: Ahmed Arditi
Tamer Abu Bakr: "The best way to use credit cards is to pay 100% of the usage on time to ensure that you benefit from their various advantages."
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A banking expert specialized in credit cards stated that withdrawing money from the credit card directly through an ATM, usually has large fees of up to 300 dirhams or more depending on the amount, in addition to interest that is calculated daily and cumulatively until the amount is paid, indicating that the rates of these interests range between 2.5 and 3%.
This came in response to inquiries from bank customers, who told Emirates Today that they noticed an increase in interest rates on the amounts they withdraw in cash from their credit card.
In detail, bank dealers said that they were surprised by a significant increase in the value of interest that is deducted when they receive monthly credit card statements, as a result of amounts of money they withdrew in cash from ATMs, and later paid them.
They told Emirates Today that they calculated the percentage of interest that they were informed about when taking the card, and found that what was deducted was greater than expected, although some of them paid before the date of issuing the account statement.
Customers, who preferred to remain anonymous, called on banks to be more transparent in the fees and interest rates charged so that card usage can be properly managed.
Tamer Abu Bakr, a banker specialized in credit cards, said that it is not safe for the customer to withdraw money from the credit card directly through the ATM, as this usually has large fees of up to 300 dirhams or more depending on the amount, in addition to an interest rate that is calculated daily and cumulatively until the withdrawal is fully paid, indicating that these benefits range between 2.5% and 3%, depending on the amount as well.
Abu Bakr explained that the best way to obtain "cash" from the credit card if needed, is for the customer to apply for transferring an amount or percentage of the credit limit of the card, which sometimes reaches up to 90%, to the customer's account as a cash amount that can be withdrawn and is later paid in installments in agreement with the bank.
He added that these amounts, known as "Quick Cash" or "Quick Cash", are transferred to the customer's account on the same day, noting that this service does not require papers, but can be applied for through the bank's smart application or through customer service centers directly.
Abu Bakr advised customers to read the terms of the credit card contract well and ask about all the details, pointing out that the fees and benefits of withdrawing "cash" are usually somewhat complicated items for the average customer and need a careful understanding to know how to calculate the percentages.
He stressed that the best way to use credit cards is to pay 100% of the usage on time each month to ensure that they benefit from their various benefits, whether loyalty points, access to VIP lounges at the airport or various discounts, while avoiding hidden and large fees and benefits.