What Is a Cash Advance Fee? (And What Different Banks Charge)

Ever found yourself in a tight spot, needing cash fast, and eyed your credit card as a potential solution? It can be easy to do.

While a cash advance from your credit card can seem like an easy way to get a quick infusion of money, it may not be as simple as just withdrawing the cash. Mandatory fees and other costs can turn what seems like a simple transaction into a surprisingly expensive one.

This guide helps explain those costs, focusing on a single, crucial element: the cash advance fee. Learn what it is, how it's structured, and what different banks and credit card companies charge. From ATM fees to "cash-like" transaction costs, we isolate the fees so you can better understand what you’re paying — and when a cash advance might not be worth it.

What is a cash advance fee?

A cash advance fee is an upfront transaction charge — the initial cost you pay when you withdraw cash using your credit card. It's separate from the interest or APR (annual percentage rate).

Typically, this fee is calculated either as a flat dollar amount or as a percentage of the amount you withdraw. The standard range is around 2% to 5% of the transaction amount, and most banks also set a minimum fee, often $5 or $10. So, if you were to take a $100 cash advance from a card with a 5% fee and a $10 minimum, you’d be charged the $10 minimum because 5% of $100 is only $5, which is less than the minimum fee.

Here's a distinction to note: Unlike a regular purchase, where you might have an interest-free grace period, a cash advance fee is typically charged immediately. It hits your account at the time your transaction goes through. This fee is usually non-negotiable and applies whether you pay off the balance in two days or two months.

Why do banks charge a cash advance fee?

Why banks charge a cash advance fee typically comes down to risk and cost. Cash advances can be riskier for lenders. You’re borrowing cash with no collateral, and banks can use these fees as a form of protection.

Also unlike purchases, cash advances start accruing interest immediately. There’s no grace period. This is, again, to buffer the risk a bank may take on. Banks also typically pass along the costs from ATM networks and cash handling, as well.

Cash advance fees by card issuer: A 2025 snapshot

Here’s a look at what major banks and credit card issuers are charging:

Card issuer	Cash advance fee	Minimum fee	APR starts	Other factors
Capital One	$5 or 5% of the amount	$5 min	Immediately	No grace period
Citibank	Either $10 or 5% of the amount	$10 min	Immediately	Higher APR than purchases
Chase	Either $10 or 5% of the amount	$10 min	Immediately	Interest starts day one
American Express	Either $10 or 5% of the amount	$10 min	Immediately	Varies by card
Wells Fargo	Either $10 or 5% of the amount	$10 min	Immediately	Interest accrues from day one
PayPal Credit	5% or flat $10	$10 min	Immediately	Possible cash-equivalent purchases

In short, some banks typically charge around 5% or a $10 minimum. The APR may kick in immediately with an interest rate higher than regular purchases.

Other charges to watch out for

Cash advance fees are just one portion of the costs that can be incurred with a credit card cash advance. These additional fees could also impact you:

ATM fees. If you withdraw cash from an ATM that’s not owned by your bank, you could be hit with a separate fee from the ATM operator. This is in addition to the cash advance fee from your credit card company. The fee can range from a few dollars to much more.
Interest Rate (APR). The APR for a cash advance is typically higher than the APR for regular purchases. Rates can be anywhere from 24.99% to 29.99% or even higher.
Foreign transaction fees. If you withdraw cash overseas, you might also face a foreign transaction fee. This is a separate charge, usually 1% to 3% of the transaction amount, that your credit card issuer may apply for purchases made in a different currency.
Cash-like transaction fees. Some issuers may charge a cash advance fee for transactions that aren't technically cash withdrawals, like buying money orders, casino chips, or cryptocurrency. It's one way banks can cover their risk on "cash-equivalent" purchases, so refer to your cardholder agreement.

How to avoid cash advance fees

The best way to lessen these fees is to avoid using your credit card for cash entirely. Instead, consider using your debit card, which pulls money directly from your checking account. If you are able to use your own money, you may not have to worry about fees or interest.

But what if you don't have enough money in your checking account and you need some cash? This is where apps like EarnIn can help. EarnIn lets you access wages you’ve earned.. With EarnIn's Cash Out¹ feature, you can get up to $150 a day, with a max of $750 between paydays. Standard transfers are free (1–2 business days). Lightning Speed² transfers are optional and available for a fee. Unlike a traditional cash advance, there are no mandatory fees, no interest, and no credit checks. Instead of charging a fee, EarnIn asks for an optional tip³ to support the service.

Alternatives, like EarnIn, can provide access to money you’ve already earned — also called earned wage access (EWA) — without the costs associated with credit card cash advances.

Planning ahead helps, too. Build an emergency fund or look into installment loans or buy-now-pay-later (BNPL) options. And consider avoiding cash-equivalent purchases like gift cards or money orders — they may trigger cash advance fees even if you’re not withdrawing cash.

Are there credit cards with no cash advance fees?

They’re rare — but not impossible.

Some credit unions offer lower-fee or no-fee cash advances. Some fintech cards may waive fees during promotional periods. But even if there’s no fee, the interest rate may kick in immediately. So while you might avoid the upfront fee, you still may pay for the act of borrowing cash.

Always read the fine print and check the APR before considering a credit card cash advance.

Know the fee before you withdraw

Cash advances can be a quick solution but are typically expensive. While they can provide money in a pinch, the combination of a cash advance fee and APR may make them a costly option. Before you head to an ATM with your credit card, consider checking both the fee and the interest rate. By understanding the true cost upfront, you can make a better financial decision for your needs.

Safer alternatives like EarnIn's Cash Out¹ can provide access to your earned pay with no mandatory fees for standard transfers (1–2 business days), which may help employees manage short-term expenses while avoiding some of the high costs of credit card cash advances. Knowing what you'll pay now could save you some money in the long run.

Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.

This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.

EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out.

¹A pay period is the time between your paychecks, such as weekly, biweekly, or monthly. EarnIn determines your daily and pay period limits ("Daily Max" and "Pay Period Max") based on your income and financial risk factors as outlined in the Cash Out Maxes section of our Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out.

EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed may not be available at all times and/or to all customers. Restrictions and terms apply; see the Lightning Speed Fee Table and Cash Out User Agreement for details and eligibility requirements. Tips are optional and do not affect the quality or availability of services.

²
Lightning Speed is an optional service that allows you to expedite the transfer of funds for a fee. Depending on the product, the fee may be charged by EarnIn or its banking partner. Lightning Speed may not be available in all states and/or to all customers. Restrictions and terms apply. See the Lightning Speed Fee Table for details.

³
Tips go to EarnIn and help us provide tools such as Credit Monitoring for free and keep Lightning Speed fees low. Your service quality and availability aren’t affected by whether you tip or not.