Skip to main content Skip to main navigation
Skip to access and inclusion page Skip to search input

What is a cash advance and how does it work?

In addition to making purchases, most credit cards also allow you to withdraw money, in the form of cash, from your credit card account. In Australia, this is commonly called a cash advance.

A cash advance could involve taking cash out of your credit card account at an ATM or transferring money from your card to a transaction account via online banking. Cash-equivalent transactions, such as money transfers, travellers’ cheques and gambling, are also counted as cash advances.

The cost of cash advances

Cash advances can be convenient if you’re short of cash or in case of emergency, but they typically cost more than making transactions with your card.

Credit card providers often charge a separate interest rate for cash advances that’s higher than the standard variable purchase rate on a card. If you decide to use your credit card for a cash advance, it could cost you more than using your card to make a purchase of the same value.

Cash advances also commonly have fees, for example 2% of the value of the transaction will apply to each cash advance. For more information on the applicable cash advance fees please refer to the fees and interest page.

See how your card compares

For these reasons, it pays to be familiar with all the different fees and interest rates that come with your credit card. And if you’re not happy with your current rates, maybe it’s time to find yourself a new card.

If you’d like to learn more, compare the interest rates on Westpac credit cards.

For tips on managing credit cards, read 6 steps to help you pay down your credit card debt.

Things you should know

Credit criteria, fees and charges apply. Offers are not available in conjunction with any special offers that are not listed on Switches, upgrades or customers accessing employee benefits are ineligible. This information does not take into account your personal circumstances and is general in nature. It is intended as an overview only and it should not be considered a comprehensive statement on any matter or relied upon as such.


© 2016 Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714. The Westpac Group, 275 Kent Street, Sydney, NSW 2000, AUSTRALIA.