What are cash advance fees?
A cash advance fee is a fee or charge a credit card holder must pay when he takes a cash advance from his credit card. For example, a person may have a $500 US Dollars (USD) credit line on his credit card. He could go out and purchase goods or services with his credit card, or he could purchase something online. If he used his card to spend $100 USD at a store, this would be considered a charge. If he went to an ATM machine and withdrew $100 USD, however, this would be considered a cash advance, and he would be charged a fee. Cash advance fees can be expensive. In many cases, a person will incur a two to four percent charge when he takes a cash advance. However, this is not all he’s likely to pay. Some credit card companies charge not only cash advance fees, but also extra interest when a cardholder takes a cash advance. Furthermore, many of the credit card companies that offer grace periods on purchases do not offer them on cash advances. This translates into paying cash advance fees
