ATM Cash Advance Fees Skyrocket

[jeffrey]

Going to a bank or hitting an ATM for a cash advance using your credit card has always been a bad deal, since you have to pay a special fee based on the amount advanced, a higher interest rate than what you pay for purchases, and interest charges start immediately. But the deal has gotten worse as the fee for taking a small advance has increased 250%, and the fee for larger advances has soared by 900%, over the past fifteen years. In 1989, nearly all major bank card issuers charged a cash advance fee of 2% with a $2 minimum and a $10 maximum fee. Today, all major bank card issuers charge a 3% fee with at least a $5 minimum and no maximum. Cardholders taking small advances or big advances are most impacted by the change. As a result, the fee for taking a $100 credit card advance for 30-days has gone up 250%... [read more at cardweb.com

For hints on reducing other ATM fees, read the SavingAdvice.com article Reducing ATM Fees.