What’s the Difference between a Cash Advance and a Balance Transfer?
Cash Advances and Balance Transfers offer ways to manage your RBFCU Mastercard® credit card. The difference between these transactions is how the available funds are used. A Cash Advance allows you to access your available credit (not to exceed your credit limit) to deposit funds to your account or withdraw cash at an ATM. A Balance Transfer offers the opportunity for you to transfer higher interest rate balances to your RBFCU Mastercard, saving you money.
A Cash Advance allows you to use your credit card to complete a cash request transaction. The transaction is processed similarly to a standard credit card purchase and you can complete the request online or at an RBFCU ATM. Unlike a cash withdrawal from a deposit account, a Cash Advance has to be paid back. Think of it as a short-term loan and your approved APR is applied to the amount advanced from your credit card account.
There’s no grace period for Cash Advances; Interest begins to accrue on the day you obtain the Cash Advance. In addition, if you don’t pay off your entire balance each statement period (including the amount of the Cash Advance), you won’t be eligible for the grace period for new purchases. Cash Advances aren’t eligible for cash back rewards or earning points. A Cash Advance Fee of up to 2% of the amount of each Cash Advance will be assessed.
To request a Cash Advance via rbfcu.org:
- Sign in to your Online Banking account
- On the Account Summary Page, select the credit card for the Cash Advance
- From the “I want to” drop-down menu on the right, select “Cash Advance”
- Then, select the account to which you want funds deposited
- Click “Next” to approve your request
- Your transaction is confirmed and funds are deposited within minutes
To request a Cash Advance at an RBFCU ATM:
- Insert card and enter your Personal Identification Number (PIN). If you don’t know your PIN, call 1-866-297-3413 for assistance.
- Select “Cash Advance” from the menu options
- Enter your request amount and your cash is dispensed immediately
Cash Advance prompts may vary depending on ATM type and geographical location. When requesting a Cash Advance at non-RBFCU ATMs, additional fees may apply. The Cash Advance Fee of 2% of the amount of each Cash Advance is assessed regardless of ATM affiliation.
A Balance Transfer is used to move the balance from an external credit card to your RBFCU Mastercard. The transferred balance is deducted from your available RBFCU credit card balance like any other purchase or transaction. We send an electronic funds transfer (EFT) to the other credit card provider to pay off the balance. (A paper check is mailed if the other provider isn’t set up to receive an EFT.) Balance Transfers can’t be used to pay other RBFCU accounts. It may take up to 30 days for the external credit card provider to receive the payment from the Balance Transfer.
There’s no grace period for Balance Transfers; Interest begins to accrue on the day the request is processed. In addition, if you don’t pay off your entire balance each statement period (including the amount of the Balance Transfer), you won’t be eligible for the grace period for new purchases. Balance Transfers aren't eligible for cash back rewards or earning points. A Balance Transfer Fee of 2% of the amount of each Balance Transfer will be assessed. This will be charged separately from the amount of your Balance Transfer. Balance Transfers may not be used to pay RBFCU accounts.
To request a Balance Transfer via rbfcu.org:
- Sign in to your Online Banking account
- On the Account Summary Page, select the credit card for the Balance Transfer
- From the “I want to” drop-down menu on the right, select “Balance Transfer”
- Complete the required information and click “Next” to confirm your transaction
- Payment Services reviews and processes your request
RBFCU offers new Mastercard credit cardholders 0% Introductory APR* on Cash Advances and Balance Transfers made during the first 90 days the account is open. The APR for requests made past the initial 90-day introductory period is based on the Prime Rate as disclosed in your Credit Card Agreement.
Information in this article is general in nature and for your consideration, not as financial advice. Please contact your own financial professionals regarding your specific needs before taking any action based upon this information.
Membership eligibility required. Credit cards are subject to credit approval. Program availability, rates and terms are subject to change. Any unredeemed rewards on any RBFCU cash back reward credit cards, as of the end of the annual earnings cycle (Oct. 1-Sept. 30), are paid out to the member’s select deposit account. Rewards access subject to account status and other criteria at time of redemption. The 0% Annual Percentage Rate (APR) is a promotional rate for only Balance Transfers and Cash Advances made during the first 90 days your account is open. Purchases are not included. We will not charge you any interest on purchases if you pay your ENTIRE balance, including Balance Transfers and Cash Advances, by the due date each month. If the ENTIRE balance is not paid, then interest will be charged on any purchases, but not on the Balance Transfers and/or Cash Advances made during the first 90 days of the account opening. Promotional rate balances will remain at 0% APR for twelve months starting from the date of the initial Balance Transfer or Cash Advance request. Beginning with the thirteenth month, any remaining balance will be repriced to an APR of % to % for a Premier Rate credit card or % to % for a CashBack Rewards card based on your creditworthiness and other factors. A fee of 2% of the amount of each Balance Transfer will be assessed. This will be charged separately from the amount of your Balance Transfer request. Balance Transfers may not be used to pay RBFCU accounts. A Cash Advance Fee of 2% of the amount of each Cash Advance will be assessed. The use of a Cash Advance to transfer a balance will result in a Cash Advance Fee. Contact the Consumer Lending Center for complete details.