Here’s why Chase cardholders may soon be paying more for cash transactions

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If you’ve used your credit card to pay other people through cash payment apps, you may want to consider changing your ways. This is because Chase cardholders may soon be paying more for cash transactions when they use a Chase credit card. Chase recently announced updates to the terms of its cardholder agreement, and these changes will take effect in early April 2021. Part of the updated cardholder agreement deals with cash transactions and notes them. changes to the way these transactions will be handled.

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Cash-like transactions will be treated as cash advances

Cash transactions can include the following:

  • The purchase of traveller’s checks, foreign currencies, money orders, wire transfers, cryptocurrency and other similar virtual currencies
  • Purchase of lottery tickets, casino gambling chips, race track betting and similar betting transactions online and offline
  • Person-to-person money transfers and accounting fundraising transactions
  • Make payments using a third-party service, including bill payment transactions not made directly with a merchant or service provider

Please note that this list is not exhaustive and may include other similar transactions.

Since cash advances come at an additional cost, you can expect these cash transactions to come with fees soon. Cash advances don’t come cheap. Most card issuers charge a fee for cash advances, and these transactions also have a high APR interest rate. Because of these costs, it is recommended that you never get a credit card cash advance unless you have no other options.

This means that if you did the following, you could soon be paying more:

  • Use a Chase credit card to pay friends or family through payment apps like PayPal or Venmo
  • Use a Chase credit card to pay bills through an external payment processing system
  • Use a Chase card to bet online through gaming apps or in casinos

What will happen if you keep making these choices? You can expect to pay a cash advance fee and pay higher interest on these types of activities once the updated cardholder contract terms come into effect. Wondering how much you could pay? It’s best to check your own card agreement, but Chase gives an example cardholder agreement on their website, and here are the fees listed:

Cash advance fees: Either $ 10 or 5% of the amount of each transaction, whichever is greater

APR of the cash advance: 24.99%

You can avoid these fees by no longer using your credit card for cash transactions. It’s best to take your spending habits into account and make the necessary adjustments to avoid unwanted additional charges.

The exact date these changes take effect depends on the Chase card you have. If you are unsure of when to expect these changes, you can contact the Chase customer service team or search your inbox for a message with the subject line “Important information about changes to your Chase account” to read your updated agreement.

How to avoid cash advance fees

If you want to make sure you avoid cash advance fees and accidental cash-like transactions in your account, contact Chase. You can adjust your cash advance limit. You may want to make this limit zero or as low as possible to avoid accidentally paying more.

The bottom line

Pay attention to changes to the terms of your credit card account. If you receive an email or letter from Chase, be sure to read the updated terms to avoid surprises. Now that you know about these cash transaction updates, you can adjust your habits and avoid unwanted charges. If you’re looking for a new credit card, take a look at our list of the best credit cards for inspiration.


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