Credit cards play an important role in people’s daily consumption. Compared with ordinary savings cards, the biggest feature of credit cards is that they can make overdraft purchases or cash withdrawals in advance when personal funds are insufficient. Generally speaking, users can use credit cards to make purchases or withdraw cash. So what is the difference between the two? What are the main differences? What is the difference between cash withdrawal and card payment? Credit card cash withdrawal refers to the amount of credit limit granted to the cardholder by the card issuing bank or institution that can be used for cash advance or transfer, while credit card consumption refers to the direct use of the credit card amount for transactions when users use a credit card to purchase goods. The differences between the two include four aspects: quota limit, interest-free period, points rules, and handling fees. [1] Credit limit Credit card cash withdrawal limit generally ranges from 30% to 50% of the fixed credit card limit, depending on the regulations of each bank. The cash withdrawal limit is limited; as long as the credit card consumption amount is within the credit card fixed amount or the fixed amount plus the temporary amount , the available amount is greater than the credit card cash withdrawal amount. [2] Interest-free period Credit card cash withdrawals do not enjoy the interest-free period. Under normal circumstances, cash withdrawal interest will be calculated from the date of withdrawal, and interest will be charged at 50,000% of the withdrawal amount every day. Credit card purchases enjoy an interest-free period. As long as you pay off the balance in one lump sum before the repayment date, you can enjoy the interest-free service. The amount to be repaid only includes the principal amount owed. If the user is overdue or repays according to the minimum payment amount, a certain amount of interest will be charged. [3] Points Rules Credit card cash withdrawals cannot be counted as credit card points. Even if the credit card limit is used, no points will be accumulated into the user's credit card points account. There are points for spending with credit cards. The specific points rules are subject to the bank's regulations. Take the Agricultural Bank of China’s credit card as an example. Agricultural Bank of China's credit card users can earn credit card points when spending on catering, entertainment, jewelry, hotels, handicrafts, tourism and other businesses. Earn 1 point for every RMB 1 spent, 6 points for every USD 1 spent, and 1 point for every 1 Euro spent. [4] Handling fees Credit card cash withdrawals require handling fees, and each bank charges different standards. Generally, it is charged at 1% of the transaction amount. That is to say, if you withdraw 10,000 yuan, the handling fee is 10,000 yuan * 1% = 100 yuan. Under normal circumstances, there is no charge for credit card consumption, but if the user uses a credit card for installment business, installment fees will be charged. Taking the Bank of Communications credit card as an example, the handling fee is 0.93% for three installments, 0.8% for six installments, and 0.72% for ninth, twelfth, eighteenth and twenty-fourth installments. In short, credit card cash withdrawals and credit card purchases are services provided to users by bank credit cards. If the user's personal funds are insufficient, the available credit card limit will be consumed and will be restored again after repayment. And whether it is cash withdrawal or credit card consumption, users must maintain good repayment habits and repay the credit card in full and on time before the expiration date to avoid overdue behavior that affects personal credit.