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A credit card cash advance fee is a fee charged for withdrawing cash from the credit line on a credit card, using an ATM withdrawal or a convenience check. Cash advance fees are a percentage of the amount withdrawn (usually 2%-5%), a flat fee (typically $10-$15), or whichever option is more expensive. The latter scenario is the most common. For example, if you take out a $250 cash advance with a credit card that has a cash advance fee of 5% or $10, whichever is greater, the fee will amount to $12.50 (5% of $250).
In addition to cash advance fees from your credit card issuer, you’ll likely pay $2-$5 in ATM fees if you use your credit card to make a withdrawal. On top of those fees, you’ll also have to pay the credit card’s cash advance APR. The interest rate for a cash advance is usually even higher than a credit card’s regular APR, and cash advances begin accruing interest immediately. Typically, cash advance APRs are 20%-36%.
Cash Advance Fees by Credit Card Company
|
Company |
Typical Cash Advance Fee |
|
American Express |
5% ($10 minimum) |
|
Bank of America |
5% ($10 minimum) |
|
Barclays |
5% ($10 minimum) |
|
Capital One |
3% ($10 minimum) |
|
Chase |
5% ($10 minimum) |
|
Citi |
5% ($10 minimum) |
|
Discover |
5% ($10 minimum) |
|
USAA |
3% (waived when transferring funds to a USAA deposit account) |
|
U.S. Bank |
3% ($5 minimum) for convenience checks; 4% ($10 minimum) otherwise |
|
Wells Fargo |
5% ($10 minimum) |
All in all, cash advances are essentially very expensive short-term cash loans. While they’re helpful in an emergency, you should avoid cash advances whenever possible.
Information in the table above is current as of May 2020 and does not apply to every card from each issuer, as some rates and fees may differ.
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