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.

Cash Advance

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. Cash Advances aren’t eligible for cash back rewards. A Cash Advance Fee of 2% of the amount of each Cash Advance will be assessed. The fee will be charged separately from the total amount of each Cash Advance request.

To request a Cash Advance via rbfcu.org:

1. Sign in to your Online Banking account.
2. On the Account Summary page, select the three dots next to the credit card from which you’d like a Cash Advance.
3. From the “I want to” drop-down menu, select “Cash Advance.”
4. Then, enter the amount you’d like and select the account to which you want funds deposited.
5. Click “Send Now” to approve your request.
6. Your transaction is confirmed and funds are deposited within minutes.

You can also request a Cash Advance through Move Money in Online Banking or the RBFCU Mobile app.

To request a Cash Advance at an RBFCU ATM:

1. Insert card and enter your Personal Identification Number (PIN). If you don’t know your PIN, call 1-866-297-3413 for assistance.
2. Select “Cash Advance” from the menu options.
3. 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.

Balance Transfer

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. Balance Transfers aren't eligible for cash back rewards. 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.

To request a Balance Transfer via rbfcu.org:

1. Sign in to your Online Banking account.
2. On the Account Summary page, select the three dots next to the credit card from which you’d like a Balance Transfer.
3. From the “I want to” drop-down menu, select “Balance Transfer.”
4. Complete the required information and click “Submit” to confirm your transaction.
5. Payment Services will review and process your request.

You can also request a Balance Transfer through Manage Cards in Online Banking or the RBFCU Mobile app.

Both Cash Advance and Balance Transfer requests can be made by contacting Member Services via chat through your Online Banking account, by visiting your nearest RBFCU branch or calling 210-945-3300.

RBFCU offers new Mastercard credit cardholders 2.9% 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 will be based on the Prime Rate disclosed to you at the time your application was approved.

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. Rates and terms subject to change.

*The 2.9% 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, and the promotional interest will be charged on the Balance Transfers and/or Cash Advances made during the first 90 days of the account opening. Promotional rate balances will remain at 2.9% 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, % for a World Cash Back credit card, or % for a Business Select credit card based on your creditworthiness and other factors. Cash back rewards are not earned on Balance Transfers or Cash Advances. A fee equivalent to 2% of the amount of each Cash Advance and Balance Transfer will be assessed. Balance Transfers may not be used to pay RBFCU accounts. This will be charged separately from the amount of your Cash Advance or Balance Transfer request.

Cash back is an enhancement to the RBFCU World Cash Back and Business Select Mastercard credit cards and may be discontinued at any time. Program availability, rates and terms are subject to change. The Cash Back rewards program pays a reward for each qualified purchase completed with your Card. ATM withdrawals, Balance Transfers, Cash Advances, finance charges, fees and any other non-purchase transactions do not qualify for rewards. The cash back is redeemable online, and payment of the reward may be made as a statement credit. Cash rewards are forfeited if your Card is closed before redemption. We reserve the right to disqualify transactions that are not usual or customary and are apparently structured or intended to abuse the program. Abuse of the program may result in loss of rewards and Card privileges. We may add to, change, or delete any of the terms of this program or discontinue this program at any time at our sole and absolute discretion.

An authorized user is an individual who has charging privileges on a credit card account even though he or she is not the primary Cardholder. The primary Cardholder is solely responsible for the Account. The primary Cardholder must notify the authorized user that the Account will be reported to a credit bureau and thus will show up on their credit report, which can affect them positively or negatively, depending on how the Account is handled. You agree to pay for all purchases, Cash Advances, fees and charges resulting from any transaction made by an authorized user on your credit card Account. If an authorized user wants to be removed from the Account or if the primary Cardholder wants to terminate that person's privilege as an authorized user, either party may contact us to submit the request.