How does a cardholder typically incur high charges for Cash Advance transactions?

Cash Advance transactions typically involve higher charges for cardholders primarily due to the specific fee structure associated with these transactions. When a cardholder uses their credit card to withdraw cash, the issuer incurs additional costs. This is because interchange fees related to cash advances are different from those linked to regular purchases. The issuer pays a fee to the acquirer, which is part of the reason why cardholders face elevated interest rates and fees for cash advances.

Cash Advances are often attached to a higher interest rate, and the interest begins accruing immediately, without the grace period that is usually applicable to regular purchases. This structure is designed to protect the issuer's risk in facilitating cash access. As a result, cardholders are subjected to higher overall charges when they opt for cash advances, reflecting the underlying financial arrangements between issuers and acquirers.

The other options, while relevant to the broader context of credit use, do not directly explain the specific reason why cash advances incur high charges compared to regular credit card transactions.