Generally, credit card issuers will first apply your credit card payment to any interest charges owing. Any remaining portion of your payment will then be applied to your principal balance. Different types of credit card transactions are charged different interest rates, such as standard point of sales transactions vs high-interest cash advances. Most credit card issuers will apply your payment to the portion of your balance subject to the lower, standard interest rate first, like regular purchases. Followed by the portion of your balance subject to a higher interest rate, like cash advances. What’s left of your payment will then be applied to your principal balance. However, different credit card issuers decide for themselves how they will apply your payment. To find out, refer to your credit card agreement disclosure, or by calling your credit card issuer.