Desperate times call for desperate measures. Or do they? Have you ever been in a pinch, and knowing full well that you shouldn’t use your credit card to draw cash, done it anyway? If you feel guilty doing this, you should – it seldom makes sense to use your credit card in this way.

Here are 5 reasons you shouldn’t use your credit card to draw cash:

1. It’s more expensive

Although you get free card swipes at retail till points when you use your credit card, this courtesy doesn’t extend to drawing cash. When you use a Nedbank ATM, you’ll be charged R2,20 for every R100 you withdraw, and a fair bit more if you use your Nedbank card at a non-Nedbank ATM.

The second way that drawing cash costs you more is that this transaction doesn’t qualify for the usual 55-day interest-free period. This grace period applies only when you pay by card at the till point and for online purchases. So, you'll be charged interest from the moment that you draw the cash at the machine.

2. You can’t apply this to your budget facility

A great benefit of using a credit card to pay for big-ticket items is that you can request to pay this off over periods from 6 months to 3 years.

It’s best to swipe your card directly for purchases, or use it for online transactions – but don’t treat it like a cash facility

This helps with your budgeting because you’ll be paying a set amount for the period that you’ve chosen. Unfortunately, you cannot apply ATM withdrawals to your budget facility.

3. You lose chargeback rights

One of the benefits of swiping your credit card to pay is that you receive automatic purchase protection by way of chargeback rights. This means that you're able to dispute a payment made on your card if you have a legitimate claim because you’re unhappy with the goods or services you bought. That claim could lead to you receiving a refund on your purchase. When you draw cash at an ATM and spend it, you lose this right, because you’re effectively paying cash.

4. You don’t earn rewards points

You also lose out on earning rewards points when you use your credit card at an ATM, because this transaction doesn’t qualify for points.

5. Carrying cash is dangerous

The final reason you want to avoid using your card at an ATM is that carrying cash is not safe. Withdrawing a wad of cash could make you a tempting target for thieves.

So, it’s best to swipe your card directly for purchases, or use it for online transactions – but don’t treat it like a cash facility.

If your card is stolen, or you suspect it has been cloned, or that any other type of fraud has occurred, you should block your card on the Nedbank Money app and call us immediately on 0800 110 929.