What is a Cash Advance in the context of payment processing?

In the context of payment processing, a cash advance refers specifically to the act of obtaining cash from a financial institution, such as through an ATM or directly from a bank teller, using a credit card. This process allows cardholders to borrow a certain amount of cash against their credit limit, which can then be used for various personal expenses.

It is important to note that cash advances typically involve higher interest rates and may also carry additional fees, unlike standard purchases made with the card. This distinguishes them from other financial transactions, making option B the most accurate definition of a cash advance. Understanding cash advances' implications on fees and interest can help consumers make informed financial decisions when they choose to utilize this option.