A cash advance is a facility offered on most credit cards that allows you to withdraw cash using your credit card. You can typically do this at either an ATM or over the counter at a bank branch. There is typically a predefined limit on how much cash you can withdraw. However, unlike a debit card used to withdraw cash from your bank account, you’re withdrawing credit. This credit withdrawal will incur interest when you use the cash withdrawal from your credit card.
Besides getting cash from a credit card, some other transactions may be considered cash advances. These could include when you pay a bill with BPAY, when the biller doesn’t accept credit card payments or when you use your credit card for gambling purchases.
Cash advances often have higher interest rates and therefore cost you more than using your card to pay for things. Due to this, it’s worth checking with your credit card provider about which transactions are charged as credit advances.