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Beware the cash advance on your credit card

Wondering what a cash advance is and why they can be costly? Here, we take a look at what can count as a cash advance on a personal credit card at ANZ and why you might want to avoid this type of transaction.

Using your personal credit card to get your hands on some cash could end up really costing you.

Credit card providers generally treat cash advances differently to 'regular purchases'disclaimer made using a credit card. They may have a higher rate of interest from the day the cash advance is made and can attract a cash advance fee (more on this below). They can also impact any interest-free period that applies to the credit card account.

In other words, you could end up paying extra when you make a cash advance.disclaimer

What counts as a cash advance?

Using a credit card to withdraw cash at an ATM is one type of transaction that could be counted as a ‘cash advance’. But other types of transactions can be classified as cash advances, too.

Remember, every credit card provider will have their own rules around what types of transactions count as a cash advance. Read the credit card contract and the fees and charges information from your provider to see what they classify as a cash advance.

At ANZ, a variety of transactions are currently treated as cash advances, including:

  • Transactions to your account which result in you receiving cash (including withdrawing cash at an ATM, bank branch or at the checkout of a supermarket) 
  • Transactions which are identified as being for gambling or gaming purposes
  • Buying ‘cash equivalent’ items or substitutes, including foreign currency cash orders, wire transfers or international money transfers
  • Buying or loading value on gift cards or prepaid cards
  • Making some bill payments (for example, where a credit card is used to pay a bill at a bank branch or via an approved agent of the biller)
  • Some payments to people/billers who don’t accept credit payments from the credit card account (this may include payments through the BPAY® scheme, ANZ Internet Banking, ANZ Phone Banking and ANZ Mobile Banking).

For further details of transactions that are currently considered to be a ‘cash advance’ at ANZ, please refer to the ANZ Credit Card Conditions of Use.

Learn more about ANZ credit card cash advances.

How cash advances can come back to bite

At ANZ, cash advances are treated differently to other purchases made using a credit card.

Here are some key facts about cash advances at ANZ to help you understand how these transactions can end up costing more than 'regular purchases':

Cash advance fee

Cash advances can attract a cash advance fee in addition to interest charges. This fee will be added to the cash advance balance, which means you can also pay interest on this fee.

The credit contract will include details of the specific cash advance fee that applies to a particular credit card.

Say someone withdraws $500 – if the cash advance fee that applies is $10 (assuming a cash advance fee of 2%), that person could pay the cash advance interest rate on $510 from the date of the transaction.disclaimer

Cash Advance interest rate

If you make a cash advance, you may be charged interest at a higher rate on that transaction than if you made a 'regular purchase'disclaimer. Bear in mind that the interest on a cash advance is generally charged on a daily basis.

You could look at a recent statement to see what the cash advance interest rate was for your ANZ credit card.disclaimer For current information on the cash advance rate that applies, refer to your credit contract and the ANZ Personal Banking Account Fees and Charges and the ANZ Personal Banking General Fees and Charges.

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. Interest will continue to be charged on the outstanding cash advance balance until you pay the full balance (including any previously billed interest, fees and charges).

Think twice before making a cash advance

Given the cash advance fee and higher interest that may apply, it makes sense to think twice before using your credit card to make a cash advance. If you're planning on making a cash advance on an ANZ credit card, please check the relevant interest rates and fees and terms and conditions first.

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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

Regular purchases in this context refers to purchases which contribute to the purchases balance which are not subject to Promotional Plan arrangements and are not subject to additional fees or charges (such as overseas transaction fees).


The cash advance rate displayed on a statement will be the rate applied to the statement period that the statement relates to and may not reflect current or future fees and/or charges.


This is an example only. Example assumes $0 balance at the commencement of the statement cycle and that no other transaction fees or charges apply.