How do I add cash from my credit card?

Avoid Credit Card Transaction Fees with Digital Wallet Transfers

In an era where convenience reigns supreme, many individuals rely on credit cards for their financial transactions. However, credit card fees can accumulate quickly, especially when using them to add cash to your digital wallet or bank account.

The Credit Card Cash Advance Conundrum

Typically, adding cash from your credit card incurs a hefty cash advance fee of around 2-3%. Additionally, interest charges start accruing from the moment the transaction is processed, adding to the overall cost.

A Smart Alternative: Digital Wallet Transfers

To circumvent these fees, consider utilizing a digital wallet as an intermediary. Digital wallets, such as PayPal or Venmo, allow you to transfer funds from your credit card without triggering a cash advance.

Step-by-Step Guide to Avoid Transaction Fees

1. Fund Your Digital Wallet: Transfer funds from your credit card to your digital wallet. Most digital wallets charge a processing fee for credit card transfers, but it’s typically lower than a cash advance fee.
2. Transfer to Your Bank Account: Once the funds are in your digital wallet, transfer them to your linked bank account. Digital wallets usually offer free or low-cost bank transfers.

Benefits of Digital Wallet Transfers

• Avoid Cash Advance Fees: Digital wallet transfers bypass the cash advance fees charged by credit card companies.
• Save on Interest: Interest charges do not apply during the transfer process, as the funds are not treated as a cash advance.
• Convenience: Digital wallets provide a convenient way to transfer funds without visiting a bank or ATM.

Example Calculation

Let’s say you want to add $500 from your credit card to your bank account. With a 2% cash advance fee, you would pay $10. Using a digital wallet with a 1% processing fee, you would only pay $5.

Conclusion

By utilizing digital wallet transfers, you can avoid costly credit card transaction fees when adding cash to your bank account. This method not only saves you money but also provides a convenient and efficient way to manage your finances.