Terms and Conditions
What is a cash advance fee?
A cash advance fee is what the credit card company charges you for obtaining cash with your credit card. When you get a cash advance on your credit card account, you are usually charged the fee on the day you make the cash advance.
This fee can be a set amount per transaction or a percentage of the transaction. It is usually about 3% - 5% of the amount drawn, often with some kind of minimum charge. Getting a cash advance also carries with it a high interest cash advance APR, that usually starts the day you make the cash advance – so beware. Note that this APR is not a part of the cash advance fee, but it is a part of your overall cost.
Cash advances can be usually made at many ATMs or sometimes can be delivered by a messenger service.
Depending on the credit card company issuing the card, the cash advance fee may be deducted directly from the cash advance at the time the money is received or it may be posted to your bill on the day you received the advance. The cost of a cash advance is also higher because there generally is no grace period - interest starts adding up from the moment the money is withdrawn.
EXAMPLE:
The fee may be listed on your Terms and Conditions as “2%/$10.” This means that the cash advance fee will be either 2% of the cash advance amount or $10, whichever is more.
See also:
What is a cash advance?
What fees do credit cards have?
How do I compare credit card offers?
Last update: 2006-09-25 19:08
Author: BKO
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