Topic summary
Cash advance
Extracted from the Wikipedia article Credit card.
Cash advance
A cash advance is a credit card transaction that withdraws cash rather than purchasing a good or service. The process can occur through an ATM, or it can occur over the counter at a bank or other financial agency, up to a certain limit; for a credit card, this will be the (or a percentage of it). Cash advances often incur a fee of 3–5% of the amount borrowed. When done through a credit card, the interest is often higher than on other credit card transactions. The interest compounds daily starting from when the cash is borrowed.