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How Much Does A Cash Advance Cost with Credit CardsWhenever you get dollar advances from banks from a credit card then cash advance fees will apply. Fees are charged if money is gotten from an ATM machine or by the teller. Although the ATM will require a PIN number and the teller will normally require a photo ID to process the credit card transaction.
There are two main rates associated with cash advances; the initial fee to obtain the money in-hand and then afterward, the interest rate (Advance Rate) that is paid on the amount received.
Upfront Advance FeesEach bank card has its own set of fees. As of early 2017 these rates are claimed to apply;
- American Express - the greater of 3% or $5 on the advance amount.
- Discover Card - 5% on the amount. Certain ATM's may be surcharge-free while advance APR's apply.
- Capital One - 3% of the money forwarded, $10 minimum.
- Citibank - 5% or $10 whichever is more.
- US Bank - the greater of 4% or $10
- Bank America - offers a direct deposit/cash advance at 3% and $10. An ATM or, over the counter advance, is 2% additional.
- Wells Fargo - the higher of 5% of $10 at an ATM (ten dollars more done at a branch office).
While each of these companies may offer greater or lesser rates based on the particular credit card being considered, it is important to confirm these and all advance fees prior to making any such transactions.
APR's on the AdvanceWhereas the upfront fees are somewhat stable - APR's being charged for cash advances may vary with the Prime Rate.
These advance rates will exceed interest on purchase amounts. You will want to refer to the Cardholder Agreement/Terms and Conditions for disclosure on APR's being charged which is required by law.
ATM FeesThere could be fees from the ATM machine itself, that are normally $2 to $5. Based on the machine that you decide to use.
Since the cash advance is a transaction that is by far, among the most expensive ways of sourcing cash, most experts agree it should only be used for emergency situations. Infrequent at best.