Indonesia credit card cash withdrawals face high fees and fraud risks

Credit cards are designed for purchases, not cash advances. In Indonesia, banks typically charge a cash‑withdrawal fee of 2 % to over 4 % of the amount taken, with a minimum fee of about 100,000‑150,000 VND per transaction. Interest starts accruing immediately, often at annual rates of 20 %‑40 %, unlike regular purchases that enjoy a 45‑55‑day interest‑free period.

Cash‑withdrawal limits are usually about half of the overall credit limit, and frequent use can signal financial stress to lenders, potentially harming the cardholder’s credit rating. Authorities also warn of illegal cash‑withdrawal schemes that use POS devices to disguise fraudulent transactions, posing risks of money‑laundering and tax evasion.