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Online gambling has taken the internet by storm. And for those who use online gambling as a chance to earn points or cash back on bets, Discover has announced that it'll soon come with an added cost in the form of cash advance fees.
Here's what you need to know about Discover's latest announcement to its cardholders.
Discover To Classify Online Gambling as a Cash Advance
As the name implies, cash advance fees are the fees you pay to withdraw cash from your line of credit. Depending on the card in your wallet, this fee will vary, possibly coming in the form of a fixed percentage or a flat dollar amount. You'll see the exact terms in your cardholder agreement.
In the wake of Discover's recent email to cardholders, it's important to familiarize yourself with what you'll pay in cash advance fees — especially if you're an online gambler.
On April 16, 2024, Discover will reclassify online gambling activities as cash advances. So, if you enter your card details to place a bet on a sports betting website or app, you'll pay a cash advance fee on the amount charged to your Discover card.
Cash advances don't earn rewards and can accrue interest. Ultimately, if you've made a habit of using your Discover card to place online bets, you'll want to re-evaluate your payment method before April 16th rolls around. Otherwise, your bets will cost more.
However, there's a good chance other cards in your wallet also feature similar terms. The best way to verify is to read through your disclosure statements to confirm. And if you're considering applying for a different card to fund your bets, it's a good idea to read through its disclosures beforehand, too.
Related: The Beginner's Guide to Building Healthy Credit
Final Thoughts
Discover has announced plans to make online gambling activities count as cash advances. Thus, starting April 16, 2024, using your Discover card to load money into your betting account will soon incur added costs.
Unless other issuers quickly follow suit (if they haven't already), the best way to avoid cash advance fees is to get familiar with your cardmember agreement, learn what does and doesn't count as a cash advance, and/or select a different credit card to pay to gamble with.
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