There is a cash limit of every card whether it is the credit card of the ATM card which one can withdraw at the specific time or within 24 hours time period. This is called as the cash limit of the card or account.
Benefits of Credit and ATM cards
The credit card and ATM card owners are at a benefit of having as much cash at any tie and it is also not dangerous for them because they do not keep money in such form that it may be stolen. In these cases the cash advance service is the most convenient and the safe one. However if you need some large amount of cash, then these cards may not help you so much.
Determination of cash limit
The cash limit is determined by the issuing authorities who issue the card to the account owners. The moment they spend money by using these cards, the same amount is deducted from their account. The service of cash withdrawal within a limit is very useful because by using this, the owner can withdraw cash either through the ATM or through any bank counter. Either in case of a credit card or an ATM card there is a certain limit. Maintaining a specific limit of cash is also useful because in this way one may be saved from losing all his or her money in case the cards are stolen.
Advance charge for withdrawn cash
Usually the cash taken in advance also charges some amount of fee. This fee is charged normally from the account if there is any money already present in the account of the owner. Usually there is a higher rate of interest or deduction on the credit cards which is made out of the account of owner directly. Usually the card holders are given a customary period for which no deduction or interest is made.
Whenever the card holder makes any purchase by using the credit card, then the same amount of money is deducted from his or her account. In some cases the interest rate is also charged along with the original price of the commodity which is being purchased. This is how the system of cash limits work in case of credit cards or ATM cards.
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