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What is an 'Advance Payment'. An advance payment is a type of payment that is made ahead of its normal schedule, such as paying for a good or service before you actually receive the good or service.
Credit card cash advance. A cash advance is an immediate loan from your issuer, and you can get it by using your existing credit card at an ATM. But beware that cash advances come at a very high cost. The APR for a cash advance is much higher than what youâd pay for purchases.