04-01-2016 08:08 PM - edited 04-01-2016 08:09 PM
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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06-01-2016 09:34 AM - edited 06-01-2016 09:35 AM
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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on 29-03-2016 04:40 PM
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.