A cash advance is a Service provided by MOST credit card and charge card issuers. The service allows cardholders to withdraw cash , either through ATM or over the counter at a bank or other financial agency, up to a certain limit. For a credit card, this will be the credit limit (or some percentage of it).
Cash advances often incur a fee of 3 to 5 percent of the amount being borrowed. When it comes to credit card, the interest is often higher than other credit card transactions. The interest compounds daily starting from the day cash is borrowed.
Some “purchases” made with a credit card of items that are considered to be cash advances in cash with the credit card network, thereby incurring the higher interest rate and the lack of the grace period. These often include money orders , lottery tickets, gaming chips , and certain taxes and fees paid to certain governments. However, the credit card transactions should be processed. Many merchants have passed the credit card processing fees to the credit card holders in spite of the credit card networks, which state the credit card holders should not have any extra fee for doing a transaction with a credit card.
Under Card scheme rules, a credit card holder presenting an accepted form of identification must be Issued a cash advance over the counter at Any bank from qui That kind of credit card, Even If the cardholder can not give Their PIN .