The cash advance is a cash withdrawal that is made at an automated banking machine (called ATM) via a payment card.
How to make a cash withdrawal?
To be able to make a withdrawal, you must have a payment card. This card must be inserted in the slot in the slot provided.
At this point it is necessary to indicate the type of operation to be performed. Once the operation is confirmed, the PIN will be requested
Once the personal security code has been entered and authentication has been carried out, you will be asked to confirm the amount you intend to withdraw. At this point the door will return the card and dispense the banknotes and any request receipt.
You can make cash advance withdrawals through the following cards:
Debit cards: erroneously known in Italy as Bancomat, it is based on the principle of pay now: the expense is debited to the account together with the purchase, the sum is then deducted from one’s bank account at the time of payment.
Credit Card: defined by the pay later formula, it allows setting period of time between the purchase and the actual payment. There are different types of credit cards, based on which you can postpone the payment or installments.
Prepaid Card: it is based on the pay before formula and involves prepayment by the card holder to have it available for various purchases.
The three types of cards just mentioned fall into the category of payment cards and allow you to take advantage of two main services: payment without resorting to cash and withdrawing cash from ATMs.
The advance count: limits and costs
The cash withdrawal operation is free or paid based on the conditions imposed by the bank. The bank could in fact charge commissions on the transaction or provide a minimum required for the individual transaction.
Usually the withdrawal, like the top-up and deposit operations, are free for customers who use the ATMs belonging to the banking group of which they are current account holders, while, more often than not, commissions are applied when using branches of other banks or credit institutions. Bank fees for withdrawal are also applied to transactions carried out at ATMs abroad. To know the commissions applied by each individual credit institution, it is necessary to consult the information sheets made available by the credit institution itself.
Banks could also apply limits on cash withdrawals, especially for insignificant amounts that exceed the limit set by the law. Currently the maximum cash withdrawal is € 1,000 per day and € 5,000 per month. These limits imposed by the current regulations, if exceeded, could lead to an assessment of the tax authorities and even sanctions.