Consumer Payment Card News

Cash Advance Fees

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% ($2 versus $5) and the fee for taking a $3,000 cash advance has increased 900% ($10 versus $90). If you need cash in hurry, using a debit card at an ATM is a better deal but only if you are using it at a no surcharge machine. Using your ATM card to take a $100 advance at an ATM that is not in your bank’s network could cost nearly as much as a credit card. Best bet: squirrel some cash in your shoe.

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|_3. CASH ADVANCE FEES – $500 Bank or ATM Advance|
|_. | 1994 | 2004|
|_. 1. Citibank | $10.00 | $15.00|
|_. 2. MBNA | $10.00 | $15.00|
|_. 3. Bank One | $10.00 | $15.00|
|_. 4. Chase | $10.00 | $15.00|
|_. 5. Discover | $12.50 | $15.00|
|_. 6. Capital One | $15.00 | $15.00|
|_. 7. Am Express | $10.00 | $15.00|
|_. 8. Bnk of Amer | $15.00 | $15.00|
|_. 9. HSBC/HH | $10.00 | $15.00|
|_. 10. Providian | $25.00 | $15.00|
|_. AVG | $12.75 | $15.00|
|_3. Source: CardTrak (www.cardtrak.com)|

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|_3. CASH ADVANCE FEES – $1000 Bank or ATM Advance |
|_. | 1994 | 2004 |
|_. 1. Citibank | $10.00 | $30.00 |
|_. 2. MBNA | $20.00 | $30.00 |
|_. 3. Bank One | $20.00 | $30.00 |
|_. 4. Chase | $10.00 | $30.00 |
|_. 5. Discover | $25.00 | $30.00 |
|_. 6. Capital One | $30.00 | $30.00 |
|_. 7. Am Express | $20.00 | $30.00 |
|_. 8. Bnk of Amer | $30.00 | $30.00 |
|_. 9. HSBC/HH | $20.00 | $30.00 |
|_. 10. Providian | $50.00 | $30.00 |
|_. AVG | $23.50 | $30.00 |
|_3. Source: CardTrak (www.cardtrak.com) |

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|_3. CREDIT CARD CASH ADVANCE FEES|
|_. | 1994 | 2004|
|_. 1. Citibank | 2% ($5min/$10 max) | 3% ($5 min/No max)|
|_. 2. MBNA | 2% ($2 min/No max) | 3% ($5 min/No max)|
|_. 3. Bank One | 2% ($10 min/No max) | 3% ($5 min/No max)|
|_. 4. Chase | 2% ($2min/$10max) | 3% ($5 min/No max)|
|_. 5. Discover | 2.5% ($2 min/No max) | 3% ($5 min/No max)|
|_. 6. Capital One | 3% ($10min/No max) | 3% ($5 min/No max)|
|_. 7. Am Express | 2% ($2.50min/$20 max) | 3% ($5 min/No max)|
|_. 8. Bnk of Amer | 3% ($2 min/No max) | 3% ($10min/No max)|
|_. 9. HSBC/HH | 2% ($2 min/No max) | 3% ($15min/No max)|
|_. 10. Providian | 5% ($3 min/No max) | 3% ($10min/No max)|
|_3. Source: CardWatch (www.cardwatch.com)|

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|_2. CURRENT CREDIT CARD CASH ADVANCE APRS |
|_. 1. Citibank | 19.99% |
|_. 2. MBNA | 19.99% |
|_. 3. Bank One | 19.99% |
|_. 4. Chase | 19.99% |
|_. 5. Discover | 22.99% |
|_. 6. Capital One | 19.90% |
|_. 7. Am Express | 18.99% |
|_. 8. Bnk of Amer | 19.99% |
|_. 9. HSBC/HH | 19.99% |
|_. 10. Providian | 19.99% |
|_. AVG AVG | 20.18% |
|_2. Source: CardWatch (www.cardwatch.com) |

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