Know the Real Cost Before You Deposit
Most Canadian players don’t realise their casino deposit is processed as a cash advance — not a regular purchase. That means a higher interest rate, an instant fee, and no grace period. The difference between what you deposit and what it actually costs you can be significant.
Online gambling transactions are coded under MCC 7995 (Merchant Category Code for betting/casino gambling), which most Canadian banks classify as a cash advance. The practical impact: a separate, higher APR (commonly 22.99% in Canada), a flat fee of 2-5% the moment the transaction processes, and no grace period at all. [Sources 1–5]
Use our calculator on the homepage
Our interactive cash advance calculator is available on the main research page. Enter your deposit amount, your card’s cash advance fee percentage, your cash advance APR, and the number of days until repayment to see the exact cost breakdown.
How Cash Advances Work — The Mechanics
A cash advance is fundamentally different from a credit card purchase. Here’s what changes when your casino deposit is coded as a cash advance:
1. No Grace Period
On regular credit card purchases, you have a grace period (typically 21 days) during which no interest accrues if you pay your statement balance in full. Cash advances have no grace period. Interest begins accruing the moment the transaction is authorised — not when your statement is generated, not when the payment is due, but immediately.
2. Higher Interest Rate
Cash advance APR is almost always higher than your purchase APR. At the Big 5 Canadian banks, typical cash advance rates are 22.99%, compared to 19.99-20.99% for purchases. Some premium or secured cards may have different rates, but the cash advance rate is always equal to or higher than the purchase rate.
3. Immediate Flat Fee
In addition to interest, most cards charge a flat fee on every cash advance transaction. This is typically 2-5% of the transaction amount, with a minimum of $3-5. This fee is charged immediately — it appears on your account the same day as the deposit.
4. Separate Balance Bucket
This is the detail most people miss. Cash advances sit in a separate balance category from purchases. When you make a payment on your credit card, the payment is applied to your purchase balance first (the lower interest rate). Your cash advance balance continues accruing at the higher rate until your purchase balance is fully paid off. This means the effective cost of a cash advance is often higher than the APR suggests.
Cash Advance Rates at Major Canadian Banks
| Bank | Typical CA APR | Typical CA Fee | Minimum Fee | Grace Period |
|---|---|---|---|---|
| BMO | 22.99% | 3-4% | $3.50 | None |
| CIBC | 22.99% | 3% | $3.50 | None |
| RBC | 22.99% | 3.5% | $3.50 | None |
| TD Bank | 22.99% | 3% | $3.50 | None |
| Scotiabank | 22.99% | 4% | $4.00 | None |
Rates sourced from published cardholder agreements for each bank, February 2025. Your specific card product may have different rates — check your cardholder agreement. [Sources 1–5]
Real Cost Examples
These examples illustrate the true cost of credit card casino deposits at typical Canadian rates:
Example 1: $100 deposit, repaid in 7 days
- Cash advance fee (3%): $3.00
- Interest (22.99% APR × 7 days): $0.44
- Total cost: $3.44
- Effective cost per $100: $3.44
Example 2: $300 deposit, repaid in 30 days
- Cash advance fee (3%): $9.00
- Interest (22.99% APR × 30 days): $5.67
- Total cost: $14.67
- Effective cost per $100: $4.89
Example 3: $500 deposit, repaid in 60 days
- Cash advance fee (3%): $15.00
- Interest (22.99% APR × 60 days): $18.90
- Total cost: $33.90
- Effective cost per $100: $6.78
The pattern is clear: the longer you hold a cash advance balance, the worse it gets. And remember — this cost is incurred before you’ve placed a single bet. You need to win enough to cover both your gambling losses and the financing cost just to break even.
Strategies to Minimise Cash Advance Costs
If you’ve decided to use a credit card despite the costs, here are strategies to minimise the damage:
1. Repay the same day
You can’t avoid the flat fee, but you can minimise interest by repaying the cash advance balance immediately. Some banks process same-day payments; others take 1-2 business days. Even paying within 24 hours significantly reduces the interest component.
2. Make a targeted payment
Call your bank and specifically request that your payment be applied to the cash advance balance rather than the purchase balance. Not all banks accommodate this, but some will if you ask. This avoids the “separate bucket” problem described above.
3. Use a card with a lower cash advance rate
Some cards — particularly low-interest cards — have lower cash advance rates. A card with 11.99% CA APR versus 22.99% nearly halves your interest cost. However, low-interest cards often have higher flat fees, so calculate the total cost, not just the APR.
4. Deposit less, more frequently
If you’re going to use a credit card, smaller deposits repaid quickly cost less in total than a single large deposit held for weeks. A $100 deposit repaid in 3 days costs roughly $3.19. Making three such deposits costs $9.57 total — less than a single $300 deposit held for 30 days ($14.67).
When to Use an Alternative Instead
In most cases, the answer to “should I pay cash advance fees to deposit at a casino?” is no. Here are the alternatives that avoid these costs entirely:
Interac e-Transfer: Free, instant, accepted at every site we list, no bank blocks.
Debit Visa/Mastercard: Uses your own money, no cash advance fees, some bank blocks may still apply.
iDebit: Links directly to your bank account, no cash advance treatment.
If avoiding fees is your priority, use these instead of a credit card. The only thing you give up is the chargeback protection that credit cards provide.
How to Check Your Specific Rate
Your cash advance rate and fee may differ from the general figures above. To find your exact numbers:
- Check your cardholder agreement. Look for “Cash Advance” or “Cash-Like Transaction” sections. The APR and fee percentage will be specified.
- Check your latest statement. Your cash advance APR is usually printed on every statement, typically near the bottom in the interest rate summary table.
- Call your bank. Ask specifically: “What is my cash advance interest rate and transaction fee?” They can tell you the exact figures for your specific card product.
- Check your online banking. Most bank apps show your cash advance rate under card details or account settings.
Once you have your exact rate and fee, use our calculator on the homepage to model the cost of your specific deposit.
Cash advance rates sourced from published cardholder agreements for the Big 5 Canadian banks, February 2025. See our Sources & Data page for full references [Sources 1–5].