In addition to cash withdrawals from ATMs, both Visa and Mastercard credit cards offer cash advance features, allowing cardholders to “신용카드 현금화” part of their available credit. Cashing out credit cards can be a handy option for travelers who find themselves short on cash, but it comes with some important considerations.
Cashing Out Credit Cards with Visa and Mastercard
- Convenience: Both Visa and Mastercard allow credit card cash advances at ATMs, giving you instant access to funds in local currency. This is especially useful in situations where you need emergency cash.
- Fees and Interest: While credit card cash advances are convenient, they come with higher fees and interest rates. Unlike regular purchases, cash advances start accruing interest immediately, so they can be expensive if not repaid quickly.
- Cash Conversion of Micropayments: One useful feature of credit cards is the cash conversion of micropayments. For travelers making frequent small payments, this feature allows them to convert those small amounts into cash, helping manage finances more efficiently while on the go.
Which is Better for Travelers in Korea: Visa or Mastercard?
Ultimately, the choice between Visa and Mastercard for cash withdrawals in South Korea depends on your individual needs and the specific terms offered by your card issuer. Both networks provide extensive ATM access, but there are a few factors to consider:
- Availability: Both Visa and Mastercard are widely accepted in South Korea. You won’t have trouble finding an ATM that works with either network, especially in major cities.
- Fees: If your card is part of the Global ATM Alliance (Visa) or a similar program, you may benefit from lower fees. In general, Mastercard may offer slightly better currency conversion rates, but the difference is often minimal.
- Emergency Cash: Both Visa and Mastercard offer cash advances, but the fees and interest rates make it an expensive option. Cash advances are best used as a last resort when other cash options aren’t available.