Who typically pays interchange fees for cash advance transactions?

Interchange fees for cash advance transactions are typically paid by the card issuer. Interchange fees represent the costs incurred when processing card transactions and are set by the card networks. In the context of a cash advance, when a cardholder uses their credit card to withdraw cash from an ATM or bank, the card issuer is responsible for paying the interchange fee to the acquiring bank or payment processor involved in the transaction.

This approach ensures that the issuer can maintain a network of ATMs and services that allow cardholders to access cash as needed. The fee is part of the overall cost of providing credit services, which is ultimately reflected in the terms of the cardholder's agreement, including interest rates or potential fees related to cash advances. This understanding reinforces the roles of various entities in the payment processing ecosystem and highlights the financial responsibilities associated with cash advances.