Haris Ashley
Discover Card offers a range of credit cards with various benefits and fees. One of the fees that Discover charges is a cash advance fee, which is typically either $10 or 5% of the cash advance amount, whichever is greater. This fee applies to certain transactions, such as obtaining cash from ATMs, financial institutions, or other locations, as well as online gambling and purchasing lottery tickets. However, Discover has a unique feature that allows cardholders to borrow up to $120 per day without incurring a cash advance fee. It is important to note that interest on cash advances accrues daily, and it is recommended to make payments as soon as possible to avoid excessive interest charges.
| Characteristics | Values |
|---|---|
| Cash advance fee | Either $10 or 5% of the amount of each cash advance, whichever is greater. |
| Cash advance fee waiver | Discover allows its cardholders to get up to $120 cash without a cash advance fee at 73 stores across the country — every 24 hours with no monthly limit. |
| Stores that waive the fee | Aldi, Piggly Wiggly, Safeway, Dollar General and most other popular national and regional chains. |
| Interest on cash advance | Interest on a cash advance accrues daily. |
| Interest rate | The standard purchase APR is % variable to % variable, based on your creditworthiness. |
| Minimum interest charge | If you are charged interest, the charge will be no less than $0.50. |
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What You'll Learn
Discover's cash advance fee waiver at select stores
Discover cardholders can obtain cash advances at checkout in select stores across the country. This unique feature allows cardholders to get up to up to $120 in cash without a cash advance fee at 73 stores, including popular national and regional chains such as Aldi, Piggly Wiggly, Safeway, and Dollar General. This service has no monthly limit, allowing cardholders to access cash without incurring additional fees every day.
The Discover cash advance fee waiver at select stores is a convenient option for cardholders who need quick and easy access to cash. The process is similar to withdrawing cash from a debit card at checkout. Cardholders can make a purchase and request cash back, with the amount added to their Discover card statement as a regular charge. This feature provides cardholders with the flexibility to obtain cash without the typical cash advance fee of $10 or 5% of the cash advance amount, whichever is greater.
Overall, Discover's cash advance fee waiver at select stores is a valuable feature that provides cardholders with a convenient and cost-effective way to obtain cash. By waiving the typical cash advance fee, Discover offers a competitive advantage and ensures cardholders can access cash without incurring additional charges. This feature, combined with Discover's other benefits, enhances the card's appeal and utility for its users.
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Online gambling transactions
Discover will reclassify online gambling transactions as cash advances starting April 16, 2024. This means that if you use your Discover card to place bets on sports betting websites or apps, you will be charged a cash advance fee on the amount charged to your card. The cash advance fee for Discover cards is either $10 or 5% of the amount of each cash advance, whichever is greater. This fee will be in addition to the standard cash advance Annual Percentage Rate (APR) that applies to these transactions.
It is important to note that cash advances do not have a grace period, and interest begins accruing on the later of the transaction date or the first day of the billing period in which the transaction is posted. This interest accrues daily, unlike normal purchases, so it is advisable to make payments as soon as possible to avoid excessive interest charges. Additionally, cash advances do not earn rewards and can impact your credit score.
To avoid cash advance fees on online gambling transactions, you can familiarize yourself with your cardmember agreement to understand what does and doesn't count as a cash advance. You may also consider selecting a different credit card to use for online gambling that has more favourable terms for cash advances or does not classify gambling transactions as cash advances. It is always a good idea to review the terms and conditions of any credit card before using it for online gambling or other transactions that may be considered cash advances.
Online gambling sites may also charge their own fees, which can add up over time. These fees are typically a percentage of the deposit or withdrawal amount. It is important to carefully review the terms and conditions of the gambling site before making any transactions to understand all associated fees and charges.
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Cash advance interest accrual
Discover Card offers quick and easy options to get cash anytime and anywhere. You can get cash with your Discover card in three ways: a cash advance into a checking account, ATMs, and banks or credit unions.
Discover charges a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater. Interest on cash advances starts accruing from the date of the transaction, and there is no grace period. This means that you will pay interest on your cash advance even if you pay it off in full and have a zero balance for that billing cycle.
To minimize the costs of a cash advance, you should borrow only the minimum amount you need. The smaller the cash advance amount, the less you will have to pay in fees and interest. It is recommended to start repaying the amount borrowed as soon as possible.
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Cash advance fee for high-risk merchants
Discover Card offers quick and easy options to get cash anytime and anywhere. However, there is a cash advance transaction fee. The cash advance fee is either $10 or 5% of the amount of each cash advance, whichever is greater. Interest on a cash advance accrues daily, unlike normal purchases, and Discover begins charging interest on cash advances as of the later of the transaction date or the first day of the billing period in which the transaction posts to the account.
Merchants deemed high-risk typically can’t qualify for traditional bank loans, but getting a merchant cash advance may be possible. The true cost of an MCA can be difficult to determine, and it’s often much higher than expected. There are many fees involved in merchant cash advances, including:
- Factor rate: MCA lenders will charge a factor rate, which is usually expressed as a decimal and shows how much extra you will owe on the advance. MCA factor rates typically range from 1.1 to 1.5.
- Origination fees: Some MCA funders also charge a fee for underwriting the advance. These fees can be as much as $2,000 to $3,000 and are deducted from your advance.
- Commissions: If you get an MCA through a broker, they may receive a commission of up to 11% of the advance amount. This is not paid out of your pocket, but some MCA companies may charge you a higher factor rate so your broker can receive a larger commission.
- Miscellaneous fees: Merchant cash advance providers are different and may charge various fees, including application fees, bank processing fees, and risk fees.
Monthly fees are also common for high-risk merchant accounts. The cost is usually to offset some of the risk involved. Many companies require high-risk merchants to pay into a rolling reserve account. Some charge a flat amount, while others charge a percentage of sales. The higher the risk level, the higher the rolling reserve percentage.
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Cash advance fee amount
Discover charges a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater. This fee is in line with industry standards, as many credit card companies charge similar fees for cash advances.
Discover offers a unique feature that allows cardholders to borrow up to $120 per day without paying a cash advance fee. This feature is available at 73 stores across the country, including popular chains like Aldi, Safeway, and Dollar General. However, it is important to note that cash advances from Discover typically accrue interest immediately, and cardholders should be cautious not to abuse this feature.
Discover's cash advance fee structure is consistent across different types of credit cards offered by the company, including the Discover it® Cash Back Credit Card. This fee applies to various methods of obtaining cash advances, such as through ATMs, banks, or convenience checks.
It is worth noting that Discover's definition of "cash advance" may differ from other financial institutions, as they include online gambling and certain high-risk merchant transactions in this category. Therefore, cardholders should carefully review the Cardmember Agreement to understand the specific terms and conditions associated with cash advance fees.
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Frequently asked questions
Discover does not explicitly state whether or not they charge a cash advance fee on insurance payments. However, they do charge a cash advance fee for other transactions, such as online gambling, which is typically processed as a cash advance. This fee is either $10 or 5% of the amount of each cash advance, whichever is greater.
Yes, Discover charges a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater. Additionally, interest accrues daily on cash advances, so it's important to make payments as soon as possible.
It's important to review your Cardmember Agreement to understand which transactions may be considered cash advances. Some examples include online gambling, purchasing lottery tickets, and money orders.
Discover offers a unique feature that allows cardholders to borrow up to $120 per day without any cash advance fees. This can be done at 73 stores across the country, including Aldi, Piggly Wiggly, Safeway, and Dollar General.
To calculate the interest charges on a cash advance with Discover, you can divide your APR by 12 to get your monthly percentage rate. Then, multiply this rate by your average daily balance. For example, if your APR is 26%, your monthly percentage rate would be 2.17%. If your average daily balance is $1,000, you would incur approximately $21.67 in interest per month.
