1. indexfundfan says

    I find it hard to believe that the megabanks will do this without additional cost to me.

    Imagine if I were to show up at the doorsteps of BofA with a third party debit card to get money. I have two choices — either go to the ATM machine or to the teller inside the branch (assuming office hours).

    If I go to the ATM machine, I will get charge a fee by BofA for the ATM withdrawal. On the other hand, if I go to the teller, I can get cash without additional fees? I think BofA is even charging some of its own customers the privilege of talking to the teller in the branch if they do it too often.

  2. Bucky says

    I thought retailers/merchants had to pay a fee when a customer uses a debit card? The fee doesn’t apply for cash advances?

  3. Harry says

    indexfundfan – Shh… Don’t tell them you are trying to beat the ATM fee. It works.

    Bucky – Retailers pay a fee when you use a debit card or a credit card. Banks dispensing cash advance are just the opposite: they earn a fee.

  4. Sandra says

    There is no free lunch here. Your credit card provider will start charging you interest on the cash advance beginning on the day of the transaction. The annualized rate will be up to 22% depending on your particular card (read the fine print details). There is no grace period and you will pay this interest charge even if you normally always pay off your credit card balance every month.

  5. Harry @ PF Pro says

    Not that I don’t believe you but I went to try this on Monday. Banks were closed though haha. Apparently there is a holiday for MLK that my work doesn’t ever seem to celebrate ;)

  6. Harry says

    Harry – You are doing it right. I said try it for $100 first. Then you will be prepared when you really need it.

  7. planetjanet says

    I’ve posted about this technique as well, my own bank (USAA) actually suggested it when I called them up to raise my ATM limit. I was buying a used car and planned on doing repeated ATM withdrawals, and they were very aware of the exact terminology (“debit card cash advance”) and stressed that there would be no fees. The funds cleared immediately as cash into the seller’s account.

    It’s an excellent trick that should be more widely known.

  8. Slotzy says

    Does this work at banks only? How about cash advance tellers at casinos? I’d like to beat the ATM charges there too which are more than at normal terminals.

  9. White Coat Investor says

    This isn’t that big a deal. You just call the bank and ask them to lift the limit for the day. You haven’t lived until you’ve bought a car or a boat with a 6 inch tall stack of 20s you took out of an ATM that morning.

    I tried the debit card cash advance for a refinancing and there was an issue (I can’t remember what). But there wasn’t any problem going outside to the ATM and pulling out $4K for closing costs apparently.

  10. Bucky says

    I tried this today. I walked to the nearest bank and asked if they do cash advances on my Mastercard. They said, “Yes. Are you a customer at U.S. Bank?” “No.” “Sorry, you have to be a customer at U.S. Bank. Would you like to open an account today?” “No thanks.”

    Bottom line, this isn’t very useful if you have to have an account with the brick and mortar. Can people list which major banks will do the cash advance without having an account with them?

    Otherwise White Coat Investor’s suggestion to call your online bank to lift the ATM limit for one day is better (if it works).

  11. Harry says

    Bucky – The teller made that up. Try a different branch or talk to the manager. MasterCard rules require all issuers give cash advance to all cardholders. They can’t discriminate on whether you have an account with the bank or not. US Bank is a MasterCard issuer.

    MasterCard Rules, bottom of page 303 in the PDF.

    Rule 8.10.3 on page 189 says they can’t charge a fee for it.

  12. alex says

    Was able to do this and withdraw 21,000 from my USAA account. Worked like a charm, no fees, no hassle, did it at a suntrust.

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