A cash advance fee is a charge a credit card issuer may add when it treats a payment as cash, which can include buying crypto. Interest on a cash advance usually starts on the day of the transaction, often at a higher rate than purchases. The card issuer, not the platform you buy from, decides whether it applies.
How does a cash advance fee work?
A cash advance fee is a charge from your credit card issuer when it treats a transaction as a cash advance, which is a short-term loan against your card. The US Consumer Financial Protection Bureau (CFPB) says the fee can be a flat amount or a percentage of the transaction, depending on your card terms (as of September 2026).
Cash advances are not only ATM withdrawals. The CFPB notes that buying cryptocurrency, peer-to-peer money transfers and lottery tickets could all trigger a cash advance fee (as of December 2024). In the UK, the FCA Handbook groups cash-like credit card transactions with cash withdrawals, and they may carry a higher interest rate than purchases (as of September 2026).
A debit card is different: it spends money from your own bank account, so it is not a credit card cash advance. Your bank may still charge its own fees.
Example: what could one card payment cost?
This example is illustrative, not a quote. The CFPB found that most of the seven large US card issuers it reviewed set the cash advance fee at the greater of $10 or 5 percent of the amount, and the most common cash advance APR was 30 percent (as of December 2024). With that fee:
- A $100 crypto purchase: 5 percent is $5, so the $10 minimum applies. The fee is $10.
- A $500 crypto purchase: 5 percent is $25, which is more than $10. The fee is $25.
Interest at the cash advance rate also runs from the day of the payment. Your card’s numbers may differ, so check your agreement.
Why does it matter when you buy crypto?
Card issuers may treat crypto purchases as cash advances. Your card issuer and your card agreement decide this, not Coinmama or any other platform you buy from.
Coinmama does not add its own fee. All fees are shown before you confirm your order. A cash advance fee is separate: if your card issuer applies one, the issuer charges it to your card account.
Before you pay by credit card, check how your card treats crypto. See payment methods and limits and the guide to buying with Visa or Mastercard, then buy crypto on Coinmama once you know the full cost.
Cash advance vs regular card purchase: what changes?
A cash advance usually costs more, because of the extra fee, earlier interest and a higher rate.
| Feature | Regular card purchase | Cash advance |
|---|---|---|
| Extra fee from your card issuer | No cash advance fee | Often a flat fee or a percentage of the amount |
| When interest starts | Usually after an interest-free grace period, if you pay in full | Usually from the day of the transaction |
| Interest rate | The card’s purchase rate | Often a higher cash advance rate |
What are the risks and red flags?
The main risk is paying borrowing costs on an asset whose price can fall. Watch for these signs:
- Borrowing to buy a volatile asset. Crypto prices can fall quickly. If they do, you still owe the full amount, the fee and the interest.
- Costs that show up later. The fee shows on your card statement, not at checkout. Check your card agreement or ask your issuer before you buy.
- Promises no seller can make. Be wary of sites that promise no cash advance fee. Only your card issuer decides how a payment is treated.
- Charges you do not recognize. Contact your card issuer, and see Cash advance and other bank fees.
Go deeper: our guide on how to buy crypto walks through a first purchase.
