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I have a credit card, where the terms and conditions have this to say about cash withdrawal:

B. Cash Advance Fees

The Cardholder can use the Card to access cash in an emergency from domestic/international ATMs. A transaction fee would be levied on all such withdrawals and would be billed to the Cardholder in the next statement. ... All cash advances also carry a finance charge equal to the charges on revolving credit (please refer to the schedule of charges) from the date of withdrawal until the date of full payment.

Consider the scenario where the statement date of the credit card is the 10th of every month, and the due date is the 20th of every month. Assume that in a particular month, on the 5th, an amount X1 is spent on an in-store purchase paid for with the card, and an amount of X2 is withdrawn (again on the 5th) as cash from an ATM, using the card. There are no other transactions on the card in the statement month, and the previous balance on the card was zero.

Given the terms above, what would be the statement amount that would be generated on the 10th? What would be the due amount on the 20th?

If it were only the in-store purchase, then the statement and due amount both would be X1. But given the cash financing clause, does the statement amount become:

  • X1 + X2
  • X1 + X2 + Interest on X2 computed from the 5th to the 10th
  • X1 + X2 + Interest on X2 computed from the 5th to the 20th

If it is the last, what happens if I pay the full amount prior to the 20th (say the 15th)? Does the balance of the interest on X2 get refunded to me?

All of this is predicated on my reading of the T&C that cash advances attract interest charges from the date of withdrawal regardless of when the statement is generated -- that is, there is no interest moratorium on cash withdrawals.

Thanks.

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    It will be X1+X2 + interest on X2 computed from 5th to 10th. If you pay this total amount on the 20th and don't make any transactions whatsoever on the card other than this payment, then your statement the following month will be the interest on X2 from 10th to 20th of the previous month. If you paid the balance on day 10+X3 where X3 < 10, then the next. month's balance will be the interest on X2 fror X3 days. – Dilip Sarwate Jun 24 '18 at 22:22
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X1 + X2 + Interest on X2 computed from the 5th to the 10th

It will be X1 + X2 + Interest from 5th to 10th+ Cash Withdrawal fees
If you make the payment on t1 date [>10th and less than 21st]; in the next billing cycle; there will be additional interest charged from 10th to t1 date. Along with other purchases etc.

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