When in an emergency, sometimes someone will do everything they can to get cash. Unfortunately, this can lead to the wrong way, for example by doing a cash advance at an ATM or on a take card payment. Have you ever heard of the term cash advance?
This method is usually often done through credit card cash advance service providers. Later you can get cash directly. Unfortunately, credit card cash advance itself is not the right shortcut to get cash. Why? Everything will be discussed in full in this article.
Definition of cash advance
A cash advance is a practice of swiping a credit card into a machine owned by an ordinary shop called a merchant to get cash. This practice is made as if you are doing a shopping transaction somewhere, but in fact, you do not get goods, but instead get money. A cash advance is often done by credit cardholders who do not have sufficient funds in their savings accounts.
This practice is usually done for those who provide credit card cash advance services. These persons have an EDC (Electronic Data Capture) engine, which can make the transaction as if it were happening. Of course, this is the same as being in debt but to the EDC machine owner or merchant. Not to mention, usually, merchants can charge an ‘additional fee’ to the card owner. Of course, cardholders can be burdened by even greater debt accumulation.
This type of service itself is very easy to find in trade centers/trade centers and online. They really advertise this service openly and the advertising banners can also appear on various internet sites that you frequently visit.
The difference with Cash Withdrawal
Some of you may have heard of the term cash advance, but is there really a difference between cash advance and cash withdrawal? The answer is there! The practice of withdrawing cash occurs if you use a credit card to withdraw cash at an ATM. Same with a cash advance, you will also be charged every time you take cash. It’s just that, fees charged on the practice of cash withdrawals will be directly charged by the issuing bank in question, and immediately recorded in your credit card bills in the next month.
However, many people prefer credit card cash advance services because the fees charged are lower, other than that players can swipe to spend credit card limits. Another difference lies in the legality of the practice itself. The practice of cash withdrawals is still permitted by the Government and is considered legal action because cardholders make transactions through authorized ATM machines. Whereas the practice of cash advance is considered an illegal practice and is strictly prohibited, and many service providers can take for this transaction through informal methods.