Credit Cards in ATMs
Many credit cards can also be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals, even if the ATM belongs to the same bank as the card issuer. Merchants do not offer cashback on credit card transactions because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider, thereby making it uneconomical.
Many credit card companies will also, when applying payments to a card, do so, for the matter at hand, when applying payments to a card, at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balances for years, even if they pay off their statement balance each month.
Read more about this topic: Credit Card
Famous quotes containing the words credit and/or cards:
“The most threatened group in human societies as in animal societies is the unmated male: the unmated male is more likely to wind up in prison or in an asylum or dead than his mated counterpart. He is less likely to be promoted at work and he is considered a poor credit risk.”
—Germaine Greer (b. 1939)
“Out in Hollywood, where the streets are paved with Goldwyn, the word “sophisticate” means, very simply, “obscene.” A sophisticated story is a dirty story. Some of that meaning was wafted eastward and got itself mixed up into the present definition. So that a “sophisticate” means: one who dwells in a tower made of a DuPont substitute for ivory and holds a glass of flat champagne in one hand and an album of dirty post cards in the other.”
—Dorothy Parker (1893–1967)