How much does withdrawing cash from ATM using credit card cost?
Cash-advance fee is 2.5–3 % of the withdrawn amount (min ₹300–₹500) from day one, plus ATM owner charges and 3–4 % monthly interest. Example: ₹10 000 withdrawal can cost ₹250 fee + ₹25 ATM charge + daily interest until repaid—no interest-free period.
When I first needed quick cash and thought of using my credit card, I realized there’s more to it than just swiping — that’s when I learned about the cash advance fee, a charge that many cardholders overlook.
What Is a Cash Advance Fee in a Credit Card?
A cash advance fee is the charge levied by your credit card issuer when you withdraw cash from an ATM or bank using your credit card. Unlike regular purchases, cash advances are treated differently and often come with higher interest rates and immediate interest accrual, even if you pay your regular statement on time.
How Much Is It?
Typically, banks charge either:
• A flat fee (e.g., ₹300–₹500 per transaction), or
• A percentage of the withdrawn amount (usually 2–3%), whichever is higher.
For example, if you withdraw ₹10,000 with a 3% cash advance fee, you’ll pay ₹300 extra as the fee, and interest will start accumulating immediately.
Important Considerations:
• Cash advances usually do not have a grace period, unlike regular credit card purchases.
• They can impact your credit utilization ratio and may affect your credit score if used frequently.
• They are intended for emergencies only, given the higher cost compared to regular purchases.
Official Source
For official details and guidelines on credit card charges in India, you can refer to the Reserve Bank of India (RBI) website: