When is your card not a card?

All of the UK's major credit card providers treat any form of gambling activity on a credit card as a cash withdrawal, according to analysis by moneysupermarket.com.

This means that when using their card for gambling, credit card users may face higher APRs than they expect. Consumers may find themselves charged around 11 per cent higher than their advertised APR when using their credit card as cash.

There are even more scenarios where consumers may be caught out. Transactions including purchasing foreign currency, electronic money transfers, postal orders and the purchase of traveller's cheques may also be treated as cash withdrawals, so will come with a hefty interest rate.

Kevin Mountford, head of banking at moneysupermarket.com said: "Credit card users have to be careful how and where they use their card. 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.

"The growth of online gambling makes it more likely that people will use their credit cards when placing a bet. Our analysis show this might narrow your odds significantly, as the cost of using a credit card for online gambling can almost double the standard APR you are charged elsewhere.

"In addition to this any form of money transfer or travel money purchase will be charged on your credit card in the same way as a cash withdrawal. Credit card users should be careful to ensure they don't expose themselves to higher charges by knowing exactly when and where their credit card transactions will be more expensive."