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When to Use a Debit Card Cash Advance

Learn when is the best time to use debit card cash advances when you've hit your ATM cash withdrawal limit.

cash advance

Cash advances are typically associated with credit cards, but some banks allow you to do the same with a debit card.

If you've hit your daily ATM withdrawal limit find out how a debit card cash advance can help and what fees you'll be expected to pay.

Debit cards are convenient for making purchases and withdrawing money at the ATM but you may not know that you can also use it to get cash at another bank's teller window.

That can certainly come in handy if you need to withdraw a large sum of cash in a pinch.

Quick answer: Use debit card cash advances when you've hit your daily ATM withdrawal limit and you still need more cash for an emergency. Debit card cash advances are provided by banks to non-customers.

How a debit card cash advance works

Using your debit card to take a cash advance at a bank where you are not a customer is fairly simple.

You present your card at the teller window and the transaction is processed the same as a credit card cash advance, only the money is debited from your account rather than being charged against a line of credit.

Depending on the bank's policy, you may have to provide a signature or your PIN number to complete the transaction.

Debit card cash advances are available at most banks in the U.S., although Citibank and SunTrust are two of the larger financial institutions that don't allow them.

So, you've hit your daily ATM withdrawal limit

If you've hit your daily ATM withdrawal limit and need a lot more cash, you may want to consider a debit card cash advance, since it's fairly easy to do, even if it's not at your own bank.

Your ATM withdrawal limit varies from bank to bank and the type of account you have usually determine how much money you can take out at the ATM each day.

Tip: If you don't need a huge amount, you can always go to your local grocery or drugstore and make a small purchase and ask for cash back. Remember that merchants place limits on how much cash back you can receive.

Comparing debit card cash advance fees

Using your debit card to withdraw money at another bank's ATM will cost you a few dollars in fees and the same is true if you're taking a cash advance from your account, with a teller.

The fee may be calculated as a flat dollar amount or as a percentage of what you withdraw.

Some banks charge a higher fee for taking cash advances from banks that are located outside the U.S.

Compared to a credit card cash advance, the fees are roughly the same but the difference is you're not paying interest on the money you withdraw.

Many credit card issuers charge anywhere from 25% to 29% APR on cash advances, so using your debit card instead is a much less expensive option.

To give you an idea of what the top banks charge for taking a debit card cash advance, check out the table below to see how they add up.

Debit Card Cash Advance Fees

Bank Name Debit Card Cash Advance Fee
Chase $5 or 3% of withdrawal amount, whichever is greater
Bank of America $5 or 3% of withdrawal amount, whichever is greater, up to a maximum of $10.00
Citibank Debit card cash advances are not permitted
PNC Bank $3 at a PNC branch, $5 at all other banks
TD Bank $3
Branch Banking & Trust (BB&T) $0
SunTrust Debit card cash advances are not permitted
Capital One 360 $0
US Bank $2
Wells Fargo $3 for domestic withdrawals, 3% of the amount for international transactions
Citizens Bank Either $10 or up to 3% of the amount of each advance, whichever is greater.
Fifth Third Bank Greater of $5 or 3% of the transaction amount up to a maximum of $10
Bank of the West $3
BBVA Compass $0

What to watch out for

The most important thing to remember about a debit card cash advance is that you need to have sufficient funds in your account for it to be processed.

If you try to take out more money than what you have available or there are pending debits that haven't cleared from your account, you run the risk of incurring overdraft fees once the withdrawal is complete.

Many banks charge more than one overdraft fee per day so if you have multiple items returned as a result of a debit card advance, that can push your account even further into the negative.

You'll also need to keep in mind taking a large advance could impact your minimum balance requirements.

At some banks, this is calculated based on the average amount of money you keep in your account each month but at others, it's based on the daily average balance.

If a debit card advance causes your balance to dip below the daily required minimum, it could trigger a separate maintenance fee.

Final thoughts

If you end up in a situation where you need to withdraw more money than you're able to get through the ATM, a debit card cash advance is an easy solution.

It's generally cheaper than taking an advance from your credit card and you also don't have to worry about it affecting your credit score.

Just be clear on what the fees are up front so you know how much the convenience will cost you.

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Ask a Question

Wednesday, 13 May 2020 6:43 AM
<p>Do they ask for ID ?</p>
Saturday, 01 Dec 2018 3:47 PM
<p>I have gotten several advances at a Chase branch using my usaa issued debit card with no fees.</p>
Tuesday, 18 Sep 2018 4:25 AM
<p>Alexander,</p><p>The fees noted above are charged by the financial institution that is giving the money to you, not the financial institution that issued your card.</p><p>That being said, your own bank may charge for this service (separately).</p><p>If you bank allows overseas debit card cash advances, and the U.S. bank that you're accessing allows it as well, then you should be fine. The fees charged are listed above -- also, these fees will be disclosed before you confirm the debit card cash advance.</p><p>If your bank (in Europe) allows free cash withdrawals via foreign POS terminals, it means "debit card cash back" in the U.S. Basically, you go to a convenience or grocery store and make a purchase. During checkout, you ask for cash back when paying with the debit card -- the cashier will charge you for the total amount of the purchased items plus the cash taken out.</p><p>Example: You buy a $2 bag of snacks and ask for $20 cash back. The cashier's charges $22 to your debit card and also gives you the $20 in cash.</p>
Friday, 07 Sep 2018 9:36 PM
<p>Do I understand correctly that the fees you published here are the fees imposed by the card issuer bank, right?<br>But what if I come to the nearest bank branch in the US with my European debit card and an ID and ask for the cash advance? Will they be able to accommodate my request or not, and what fees will they charge? My bank claims to charge zero fees for cash withdrawals via POS-terminals (as opposed to ATMs) overseas - I suppose it's what happens when a bank gives you a cash advance.</p>
Thursday, 09 Nov 2017 8:50 PM
<p>If you're referring to how soon you'll see the transaction posted to your account, it is similar to what you'd expect for an external bank transfers: usually 2-3 business days, but it could take longer if the bank wants to review the transaction.</p>
Thursday, 09 Nov 2017 3:31 PM
<p>How long does the cash advance take to clear?</p>
Sunday, 01 May 2016 1:34 PM
<p>Walmart does cash advances. It is $3.00.</p>
Monday, 02 Nov 2015 7:57 PM
<p>Laura, your bank's ATM will be the cheapest option obviously. Otherwise, you can buy something small (like a candy bar) at a supermarket and ask for cash back.</p><p>If you need money fast without access to free options, then you might have to resort to a debit card and pay an ATM fee at an out-of-network ATM.</p>

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