Gambling on a credit card is treated as a cash withdrawal

All of the UK's major credit card providers treat any form of gambling activity on a credit card as a cash withdrawal, new research has revealed.

According to moneysupermarket.com, the price comparison website, this means that when using their card for gambling, credit card users may face higher APRs than they may have anticipated.

Indeed, Britons may find themselves charged around 11 per cent higher than their advertised APR when using their credit card as cash.

Kevin Mountford, head of banking at moneysupermarket.com, explained that credit card users have to be careful how and where they use their card.

He added: The vast majority of consumers are aware that withdrawing cash on a credit card can be a costly exercise and should be avoided. However, many people do not understand where else their provider will treat purchases as cash withdrawals and can be fooled into making a pricey mistake.

Meanwhile, Ruth Jackson, writing for Money Week, suggested recently that after a year of unattractive credit card deals, competition in the UK market is increasing once again.