Credit Card Cash withdrawal vs MDR withdrawal

[Batman]

A friend of mine needed information on cash withdrawal from his SBI CC. I advised against it, but he was adamant. So I explained the charges - fixed charges (~500) per withdrawal, and ~3.5% pm interest after 45 days.

Instead, he found a merchant and decided to get cash from them after paying MDR, which would be about 1.5%.

Is that a better option in terms of charges? Amount withdrawn was 20k.

 

[Abhishek012]

HDFC Mosambee POS machine give 5% Cashback for SBI Cashback card:

HDFC Mosambee POS machine give 5% Cashback for SBI Cashback card

HDFC Mosambee POS machine give 5% Cashback for SBI Cashback card: One of my friend using HDFC Mosambee POS machine and send online payment link to his number and he pay online through 5% SBI Cashback credit card. Every month he got 5% upto Rs5000 cashback on SBI Cashback credit card. charges...

www.technofino.in

 

[Rahul Gupta]

A friend of mine needed information on cash withdrawal from his SBI CC. I advised against it, but he was adamant. So I explained the charges - fixed charges (~500) per withdrawal, and ~3.5% pm interest after 45 days.

Instead, he found a merchant and decided to get cash from them after paying MDR, which would be about 1.5%.

Is that a better option in terms of charges? Amount withdrawn was 20k.

Definitely better choice because he will get cc rewards + it will be counted as spending not cash withrawal(which might affect in future LEs).

 

[romilq]

If he can repay the 20k bill on time then it is better method. You can use Payzapp wallet to bank transfer at 2.5% too. I got email from HDFC bank that I can transfer to wallet and then to bank at 2.5%.

 

[Deleted member 11974]

A friend of mine needed information on cash withdrawal from his SBI CC. I advised against it, but he was adamant. So I explained the charges - fixed charges (~500) per withdrawal, and ~3.5% pm interest after 45 days.

Instead, he found a merchant and decided to get cash from them after paying MDR, which would be about 1.5%.

Is that a better option in terms of charges? Amount withdrawn was 20k.

interest is levied from the day cash is withdrawn
not after 45 days