Cash advance higher APR is to mitigate the extra risk of people using debt to pay for debt and the increased risk of default. The bank isn't losing money on t

Cash advance higher APR is to mitigate the extra risk of people using debt to pay for debt and the increased risk of default. The bank isn't losing money on the cashback feature of a credit card. They are splitting the interchange with the customer. The vendor/merchant is the one paying 2.4% of the transaction.