Ever been in a financial pinch, needed cash quickly, and thought about using your credit card? It’s a common idea.
A credit card cash advance might seem like a fast and easy way to get money, but it’s not always that simple. Extra charges and fees can make this option much more expensive than expected.
This guide breaks down those costs—especially the cash advance fee. You’ll learn what it is, how it works, and what different banks charge. From ATM fees to “cash-like” transaction charges, we’ll help you understand what you’re really paying so you can decide if a cash advance is worth it.
What is a cash advance fee?
A cash advance fee is an upfront charge you pay when you take out cash using your credit card. It’s separate from the interest (APR) that also applies.
This fee is usually calculated in one of two ways:
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A flat dollar amount, or
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A percentage of the cash you withdraw
Most credit card companies charge around 2% to 5%, with a minimum fee of $5 or $10.
Example:
If you take out $100 and the fee is 5% with a $10 minimum:
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5% of $100 = $5
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Because $5 is below the $10 minimum, you pay $10.
Important difference:
Unlike normal credit card purchases, where you might get a grace period before interest starts, cash advance fees are charged immediately. They hit your account the moment the transaction is processed. These fees are non-negotiable, even if you pay the balance off right away.
Why do banks charge a cash advance fee?
Banks charge this fee mainly because of risk and cost.
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Cash advances are riskier—there’s no collateral.
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To protect themselves, banks charge a fee and apply higher interest.
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Unlike purchases, cash advances begin accruing interest right away (no grace period).
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Banks also pass along costs tied to ATM networks and cash handling.
So, the fee helps cover both risk and processing expenses.
Cash advance fees by card issuer: A 2025 snapshot
Here’s what major banks and credit card companies are currently charging:
| Card issuer | Cash advance fee | Minimum fee | APR starts | Other factors |
|---|---|---|---|---|
| Capital One | $5 or 5% of the amount | $5 min | Immediately | No grace period |
| Citibank | $10 or 5% of the amount | $10 min | Immediately | Higher APR than purchases |
| Chase | $10 or 5% of the amount | $10 min | Immediately | Interest starts day one |
| American Express | $10 or 5% of the amount | $10 min | Immediately | Varies by card |
| Wells Fargo | $10 or 5% of the amount | $10 min | Immediately | Interest accrues from day one |
| PayPal Credit | 5% or flat $10 | $10 min | Immediately | Possible cash-equivalent purchases |
In summary:
Most issuers charge about 5% or a $10 minimum, and interest starts immediately—often at a higher rate than normal purchases.
Other charges to watch out for
Cash advance fees are only part of the cost. You may also face:
1. ATM fees
Using a non-bank ATM can result in an extra fee from the ATM operator—on top of your credit card fee. This can range from a few dollars to much more.
2. Higher Interest Rate (APR)
Cash advance APRs are generally higher than regular purchase APRs—often 24.99% to 29.99% or more.
3. Foreign transaction fees
Withdrawing cash abroad may trigger a 1% to 3% fee for currency conversion.
4. Cash-like transaction fees
Some credit card companies treat things like money orders, casino chips, or cryptocurrency purchases as cash advances. These “cash-equivalent” purchases can lead to the same fee and interest terms as withdrawing cash. Always review your cardholder agreement.
How to avoid cash advance fees
The best way to avoid these fees is not to use your credit card for cash.
Instead:
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Use a debit card (no interest, no cash advance fee).
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Pull money from your checking account if possible.
But if you don’t have enough in your account, consider apps like EarnIn.
EarnIn lets you access money you’ve already earned. With Cash Out¹, you can get up to $150 per day and up to $750 per pay period.
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Standard transfers (1–2 business days) = free
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Lightning Speed² (instant) = optional small fee
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No mandatory fees, no interest, no credit check
Instead of a required fee, EarnIn allows optional tips³ to support the service.
This type of earned wage access (EWA) can give you the cash you need—without the high costs of a credit card cash advance.
Planning ahead can also help:
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Build an emergency fund
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Use installment loans or buy-now-pay-later (BNPL) options
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Avoid cash-equivalent purchases that may trigger fees
Are there credit cards with no cash advance fees?
They’re rare—but they do exist.
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Some credit unions offer lower or no-fee cash advances.
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Some fintech cards may waive fees during promotions.
However, even if the fee is waived, interest usually starts right away, and the APR might still be high. So you may avoid the upfront fee but still pay a lot in interest.
Always read the fine print and check the APR before taking a cash advance.
Know the fee before you withdraw
Cash advances can offer quick cash, but they are usually expensive.
Between the cash advance fee and the high APR, the total cost can add up fast.
Before using your credit card at an ATM:
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Review the fee
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Check the interest rate
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Understand the total cost
Knowing this ahead of time helps you make smarter financial choices.
Safer alternatives like EarnIn’s Cash Out¹ let you access your earned wages with no mandatory fees for standard transfers (1–2 business days). This can help cover short-term expenses without the high charges of a cash advance.
