You Might Be Accidentally Using Cash Advance With the Citi Double Cash Card

Jason Wuerch Dec 12, 2014

Introduction

If you’ve been following the hottest credit cards on the market right, you probably know that one of the best ones for all-around cash back is the Citi Double Cash Card that gives you 2% cash back on all purchases. 1% is given back to you when you make the purchase, and an additional 1% is given to you when you make your payment online.

These cash back bonuses have no limit, meaning you’ll receive 2% on all purchases all-year-round. However, certain purchases made using the Citi Double Cash Card count as cash advance, meaning you’ll end up being charged an extra 3% on your purchase. In this article, we will mention what you should be on the lookout for before using this card.

What is the Citi Double Cash Card?

We won’t go into the full benefits of the card in this article, but here’s a quick glance of what the card offers:

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• 1% with all purchases and 1% when you pay your bill
• No cap on the amount of cash back received
• First time late payment fee is waived
• Cash back redeemable after earning $25 dollars in rewards
• No annual fee
• Free concierge service
• Incredible Citi benefits

As you can see, with 2% cash back for things you buy of any category, this is one of the best cards to use for any general purchase.

American Express Gift Cards

If you’ve read my article on how to get a guaranteed 3.7% cash back on all purchases, using a 2% cash back credit card is crucial to receiving this discount. However, using the Citi Double Cash Card when making this purchase will charge you a hefty cash advance fee.

If you’re wanting to make this purchase with the highest cash back possible, I recommend using the American Express Fidelity Rewards Card, which also gives you unlimited 2% cash back.

American Express Serve

Using American Express Serve can be a great way to meet minimum credit card spending limits along with getting some extra cash with credit cards. You can load up to $1,000 into your account per month using a credit card with no fees. However, with any Citi card you’ll be charged for cash advance.

If you want to use a credit card to upload to Serve, I recommend using Chase, Capital One or any American Express Card.

Forex Fees

If you invest in the Forex market, a great way to upload money to your account is by using a credit card. Using a credit card to deposit to your Forex account usually won’t net you any extra fees, but it’s always a good idea to double check with your broker and your credit card company before depositing any sort of cash.

One word of caution is to NOT to deposit money into your Forex account only to withdraw it shortly later. This may sound like a great way to pay off the minimum requirements for your credit card, but doing this is called money laundering and is highly against any Forex policy.

After contacting Citi through their live chat, I was told that depositing funds into a Forex account using my Citi Double Cash Card would indeed count as cash advance. This of course is not a good way to invest your money, as you’ll already be down 3% from your fees.

Conclusion

If you’re uncertain about any purchases and what they account for, it’s always a great idea to check with your credit card company before making a purchase.

If you know of any other ways that Citi will charge you for cash back, please let us know by posting them in the comments below. Thanks for reading.

Jason Wuerch

My name is Jason Wuerch and I'm currently located in Madrid, Spain running a personal finance blog called Frugal For Less. My goal is to help everyone and anyone willing to make and save money through easy and simple ways that don't require much effort. Just because you're frugal doesn't mean you have to give up life's luxuries.