Published on March 11th, 2014 | by William Charles108
How To Avoid Cash Advance Fees
One thing about manufactured spending you need to be careful of is that some banks will charge you cash advance fees for purchasing Gift Cards and other similar “like cash” options. Citi is notorious for this and charges it as a cash advance where ever possible. Other banks are a little kinder, but will charge these fees when they deem it’s necessary.
This can be frustrating because you don’t want to put through a big purchase which might be charge as a cash advance and you also don’t want to put through a little purchase to test the waters as you’ll still have to pay a small fee for doing so (assuming your purchasing a gift card with an activation fee) without earning the large number of points, miles or cash back to off set it.
You can easily avoid cash advance fees, all you need to do is contact your credit card issuer and let them know that you want your cash advance limit set to $0. All card issuers will process this for you, make sure you get a reference number and if possible send a secured message rather than calling to help create a paper trail in the event that there is an issue in the future.
There is one downside to this tactic and that’s some purchases will first be processed as a cash advance and then will later change into a regular purchase. Because your cash advance limit is set to $0, it won’t be able to process the transaction even though it’ll later be coded as a purchase.
Reducing Your Cash Advance Limit With Barclays
- Call 866-408-4064 (Barclays Credit Department)
- Ask for your cash advance limit to be reduced to $0 or $1
- They’ll then ask you why, use one of the following reasons or make up your own:
- Some banks allow you to fund new checking accounts with a credit card, you want to make sure this is not coded as a cash advance
Other Banks And Their Cash Advance Limits:
- Alliant: Cannot be reduced: 1
- American Express: Cash advance limit is tied to your credit limit and cannot be lowered.
- Bank of America: Has a minimum cash advance limit of $200
- Chase: allows a limit of $0 (update 12/31/17: now reports are saying it’s either $100 or $20)
- Citi: allows a limit of $0
- FIA: allows a limit of $0
- TD Bank: Hardcoded to minimum 30% of credit limit (1)
Hat tip to Fat Wallet Finance