I have a question for the masses:
I have a credit card. When I go and make a purchase at a store, they charge me 14.9% a year to carry a balance.
But when I go to a cash machine and take cash out, they charge me 1) a fee and 2) an interest rate somewhere in the twenties for that transaction. This I do not understand. Why is it that a cash advance somehow costs them more than a regular purchase? Or is the higher interest rate just to discourage making massive amounts of cash advances on your credit card? Forgive me if this is a stupid question, but I know nothing about finance.