Buying your next home?
See our home loan tools, articles and resources to help you explore your home loan options. We'll help you get to a good place.
Your guide to credit card cash advances
Learn about credit card cash advances: what they are, the costs involved, how they work, what counts as a cash advance, and why you may want to avoid them altogether. Keep reading to find out more.
What is a credit card cash advance?
Most credit cards allow you to withdraw money from your credit card account at an ATM, cash dispenser or bank branch. This is called a cash advance.
Other debits to the credit card account may be considered cash advances too. For example, transferring money from your credit card account to another account is also considered a cash advance. So are any credit card transactions identified as being for gambling purposes. You’ll find more examples below.
How does a cash advance work?
While credit card cash advances offer convenience, they can become quite expensive, especially with frequent use.
Credit card providers typically treat cash advances differently to regular credit card purchases.disclaimer How so?
Cash advances usually attract a higher rate of interest from the day the transaction is made and often incur a fee. What’s more, interest-free periods don’t apply to cash advances, but more on this later. First, let’s look at the transactions most commonly considered cash advances.
- Withdrawing money from an ATM, cash dispenser or bank branch
- Transactions identified as being for gambling purposes
- Buying foreign currency or performing international money transfers
- Buying crypto currency
- Paying a bill in person at a bank or post office
- Transferring money from your credit card account to another account held by you or a third party
- Buying or loading value on gift cards or prepaid cards
- Some people/billers who don’t accept payments from credit card accounts (this may include payments through BPAY®, ANZ Internet Banking, ANZ App and ANZ Phone Banking).
For more information on what transactions are considered cash advances when using your ANZ credit card, please refer to the ANZ Credit Card Conditions of Use (PDF).
Cash advance fees
If you perform a cash advance, you’ll be charged a cash advance fee in addition to interest charged on the amount withdrawn. The fee can apply even if your account has a positive balance.disclaimer
At ANZ, we usually charge a 3% cash advance fee, subject to:
- a maximum fee of $20; and
- a minimum fee of $3disclaimer
Interest on cash advances
If you make a cash advance, you may be charged interest at a higher rate (on that particular transaction) than if you made a regular purchase.disclaimer Bear in mind that the interest on a cash advance is calculated on a daily basis from the day the transaction was made. The cash advance fee is also subject to interest.disclaimer
At ANZ, we’ve standardised the cash advance interest rate at 21.99% p.a. across all non-business credit cards.disclaimer
No interest-free period
Cash advances generally attract interest from the day of the transaction – regardless of whether you have an interest-free period on purchases. What’s more, interest will continue to be charged on the outstanding cash advance balance until you pay the balance in full (including any previously billed interest, fees and charges ).disclaimer
International cash advance fees
If you use your credit card to make a cash advance from an ATM or bank overseas, you’ll be charged a flat fee of $4 per transaction.disclaimer
For more information on fees and charges, please refer to our ANZ Consumer Credit Cards Fees and Charges brochure (PDF).
The final word on cash advance fees and interest
A cash advance fee is a one-off fee charged when you withdraw cash or transfer funds from your credit card account.
At ANZ, we charge a 3% cash advance fee, subject to a maximum fee of $20; and a minimum fee of $3.disclaimer
On top of the cash advance fee, you’ll also be charged interest on your cash advance from the day you make it till the day you pay it off. Interest-free periods don't apply to cash advances.disclaimer, disclaimer
It’s important to understand the types of fees that apply to your credit card. Some fees are unavoidable, whereas others – think cash advances and late payment fees – can be avoided by using your card wisely. Credit card fees can add up, so it’s best to minimise them where you can.
If you're planning on using your ANZ credit card to make a cash advance, please check the ANZ Consumer Credit Cards Fees and Charges brochure (PDF).
Juggling too much credit card debt? A balance transfer may help
A balance transfer might be a great way to consolidate your card debt at a lower interest rate to help you feel more in control.
Related articles
How to avoid paying credit card interest
Let’s face it, paying credit card interest bites big time. Especially when it can be avoided. Below we’ll look at how to minimise your credit card interest – and how to avoid paying it altogether.
How to find a credit limit that’s right for you
Thinking of applying for a new credit card? Make sure you consider a credit limit that aligns with your spending habits and your ability to repay your card balance.
Make your credit card repayments work for you
Stressed about tackling what you owe on your credit card? The way you organise your repayments could help.
Information in this article refers to personal credit cards, is general in nature only and does not take into account your personal objectives, financial situation or needs.
By providing this information ANZ does not intend to provide any financial advice or other advice or recommendations. You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances.
The information is current as at June 2019 and may be subject to change. ANZ recommends you review your personal credit card contract for information about the terms that apply to you.
ANZ interest rates and fees and terms and conditions are subject to change. Refer to the current credit card interest rates, fees and terms for further information and current interest rates, fees and terms.
Applications for credit at ANZ are subject to ANZ’s credit approval criteria, terms, conditions and fees and charges apply. Australian Credit Licence Number 234527
‘Purchase’ means the purchase of goods or services, or any other use of your credit card account treated by your credit provider as a purchase. Excludes cash advances. Other exclusions may apply. Refer to the relevant credit card conditions of use.
ReturnFor information on fees and charges for cash advances, refer to the ANZ Consumer Credit Cards Fees and Charges (PDF).
ReturnFor ANZ Rewards Travel Adventures cards, we won’t charge a Cash Advance Fee on cash withdrawals made from a branch or ATM located outside Australia.
ReturnFor more information on cash advances, please refer to the ANZ Credit Card Conditions of Use (PDF).
Return