What are Cash Advance Fee(s)?
A cash advance fee is the same fee that is charged when you use a credit card to withdraw cash from an ATM. The interest rate charged is usually higher than using the same credit card to purchase goods or services. By contrast, when you use your debit card (instead of a credit card) to transfer money or withdraw cash from an ATM, you are usually not charged any cash advance fee.
So when you send money to a friend using your credit card, you may be charged an additional fee based on a fixed amount or a percentage rate of the transaction - whichever is higher. In addition, your card issuing bank or financial institution might also charge a higher APR (basically your cost of borrowing).
Cash advance fees depend on the bank or financial institution that has issued your credit card. Safepay is not responsible for these charges. If you find cash advance fees in your statements from your bank or financial institution, you should contact them to understand these further.
Why can’t Safepay show the exact value of these fees?
Your credit card issuer decides all of the fee details. This info isn't shared with us when you're sending money. Be sure to check with your card issuer to learn more about the fees they might charge.
Important to note
Cash advance fee(s) can add up! Be sure to check with your credit card issuer on the fees they may charge before conducting transactions that might result in a cash advance fee.
How can I avoid this fee?
The easiest way is to just send money with a bank or use your debit card. Remember, using your credit card is technically like taking a loan from the bank or financial institution that has provided you this facility. Sending money or withdrawing cash through a credit card is almost always more expensive than transferring money through your bank account or using your debit card.