"Cash advance" means different things depending on context. In Canada, it can refer to a payday loan or a credit card cash withdrawal — and the two are structured very differently. This page clarifies both.
"Cash advance" is used loosely in Canadian lending. It most commonly refers to one of two things:
A short-term loan issued by a licensed payday lender — typically $100 to $1,500, repaid on your next payday. Costs are regulated by province and expressed as a flat fee per $100 borrowed. Funding is usually by Interac e-Transfer.
Withdrawing cash against your credit card limit at an ATM or bank. Interest begins immediately (no grace period), typically at a higher rate than purchases, and a transaction fee of 1–5% usually applies on top. This is a completely different financial product from a payday loan.
Sometimes. "Cash advance" is used interchangeably with "payday loan" by some lenders, but it can also mean a credit card cash advance — a separate product with different costs and rules.
It depends on the amount, repayment speed, and your province. A small credit card advance repaid quickly may cost less. Calculate the total dollar cost for both before deciding.
Start with your province, review eligibility, then compare side by side.