What counts as a cash advance
A cash advance occurs when you use your credit card to access actual cash or perform transactions that the bank treats as cash equivalents. Common examples include withdrawing money from an ATM, transferring funds from your credit card account to another account, or using your card for gambling and lottery purchases.
These transactions are handled differently from standard retail purchases. They typically attract an upfront transaction fee and begin accruing interest from the very day they are processed. Unlike regular purchases, cash advances do not benefit from any interest-free period, meaning costs accumulate until the balance is fully repaid.
| Category | Details |
|---|---|
| Management Methods | CommBank app, NetBank, or via ATM/Branch |
| Processing Time | Fees and interest apply immediately upon transaction |
| Eligibility | Available on most CommBank personal credit cards |
| Key Requirements | Sufficient available cash limit on your credit account |
How costs are applied
When you perform a cash advance transaction, two separate charges typically apply:
- Transaction Fee: You will be charged $4.00 or 3.00% of the transaction amount, whichever is greater (capped at a maximum of $300). Note that this fee is reduced to $4.00 if your account’s closing balance was in credit the previous business day.
- Interest Charges: Interest is calculated daily from the date the cash advance is processed. Because there is no interest-free period for these transactions, it is advisable to pay off the balance as quickly as possible to minimize the total interest accrued.
Troubleshooting common issues
- MFA or Login Issues: If you are locked out of the CommBank app and cannot check your available cash limit, try resetting your NetBank password. If you remain unable to access your account, contact the bank's digital support team to verify your identity.
- App or Browser Errors: If the CommBank app or NetBank is unresponsive when you attempt to check your balance, try clearing your app cache or restarting your device. Persistent technical issues should be reported to the bank to ensure there isn't a wider service disruption.
- Locked Account/ID Access: If your card is declined at an ATM, it may be due to a security block or because you have reached your daily cash withdrawal limit. Call 13 2221 to speak with a representative who can clarify the cause and assist in restoring your card access if appropriate.
Pro-Tip: Check your specific "cash advance limit" in the CommBank app before attempting a withdrawal. This limit is often lower than your total credit limit, and knowing it beforehand prevents your transaction from being declined due to exceeding the allowed cash portion of your credit line.
Frequently Asked Questions
Q: Why was I charged a fee for a BPAY payment?
Some bill payments made via BPAY using a credit card are classified by the bank as cash equivalent transactions. If you use your credit card to make these payments, the system may treat them as cash advances, attracting both the transaction fee and immediate interest. Always check your statement to confirm if a specific merchant or biller is categorized this way, and consider using a debit card for these payments to avoid unnecessary fees.
Q: How can I minimize the interest I pay on a cash advance?
The most effective way to limit interest is to pay off the cash advance balance as soon as possible, as interest is calculated on a daily basis. Any payment you make to your credit card will generally be applied first to the balance with the highest interest rate. By making extra repayments above your minimum requirement, you ensure those funds are directed toward the high-interest cash advance balance first, helping you clear it faster.
