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Cash Advance

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Posted by cgm cgm
Message 1 of 5 910 Views

I have often wondered why withdrawing cash or making purchases on a credit card are treated differently.  E.g. Higher cash advance rate than a purchase rate and interest charged sooner for cash advances.

 

Would Bankwest consider removing the more restrictive and penalising conditions for cash advances from its credit card products?

 

Why are these two transactions treated differently?

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Re: Cash Advance

[ Edited ]
Posted by PeteW PeteW
Message 2 of 5 895 Views

Another interesting one from you @cgm - thanks.

 

One of the main reasons this is the case is because a cash advance is considered a more risky type of transaction and so this additional credit risk is factored into the higher interest rate charged to customers. An example of this would be a gambling transaction which inherently carries more risk than a standard/everyday transaction.

 

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Re: Cash Advance

Posted by cgm cgm
Message 3 of 5 886 Views

Bugger, but makes sense.  Thanks @PeteW!

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Re: Cash Advance

Posted by LYMPKY LYMPKY
Message 4 of 5 777 Views

If i have a credit limit of $6000 and I have a Balance of $8000 and I do a cash advace of $1800 in USA will I still pay a FEE ?????

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Re: Cash Advance

Posted by SarahF SarahF
Message 5 of 5 773 Views

Hi @LYMPKY, there will be a Cash Advance Fee (this will be $4, providing the account is still in a positive balance.) You'll also need to consider the daily spend limit, this wouldn't apply when using the card to make purchases or pay for services over the counter/online, however there would be an AUD $1500 withdrawal limit per day if using ATMs.

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