Credit Card Cash Advances: Fees and Interest

By the Aussie Credit Guide editorial team · Reviewed 5 October 2026

A cash advance is the most expensive way to use a credit card. There is a fee, a higher interest rate and no interest-free period, and more transactions count as cash advances than most people expect.

What it costs

• A fee per transaction. Usually a percentage of the amount, with a minimum dollar charge.
• A higher interest rate. The cash advance rate is typically above the purchase rate. It is commonly above 20% p.a.
• Interest from day one. Interest-free days don’t apply. Interest runs from the day of the transaction until it is repaid.

What counts as a cash advance

The definition is in each card’s terms and conditions and generally includes:

• Withdrawing cash from an ATM or over the counter with the credit card.
• Transferring money from the credit card to a bank account.
• Gambling and lottery transactions, where the provider allows them at all.
• Buying foreign currency, travellers cheques or loading some prepaid cards.
• Some bill payments made over the counter, and purchases of money orders or cryptocurrency.

Whether a transaction is treated as a cash advance depends on how the merchant is classified, so the same kind of purchase can be treated differently at different businesses.

Why a small advance lingers

Under Australian credit law, repayments on a personal card are generally applied to the highest-rate part of the balance first, so a cash advance is paid off ahead of purchases. But until the whole balance is cleared, the advance keeps accruing interest daily, and paying less than the full closing balance also removes the interest-free period on purchases.

Balance transfers and the cash advance rate

On many cards, a transferred balance that isn’t repaid by the end of the promotional period moves to the cash advance rate. See how balance transfers work.

Lower-cost ways to get cash

• A debit card at your own bank’s ATM draws on your own money without a cash advance fee.
• For a larger or longer need, a personal loan usually carries a lower rate than a cash advance. See credit card or personal loan.
• If cash is needed because money is tight, free financial counselling is available from the National Debt Helpline on 1800 007 007.

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