Yes, you can get cash back with most credit cards, but it works differently than with a debit card
When you use a debit card at a store, the cash comes straight from your bank account. With a credit card, cash back is a cash advance — the card issuer lends you money, and you pay interest on it from day one, even if you have a 0% introductory rate on purchases. Most credit cards do allow cash back, but the cost and mechanics depend on which card you have and where you get the cash.
The most common way to get cash back is at a checkout register when you make a purchase. You tell the cashier how much cash you want, they add it to your bill, and you pay the total with your credit card. Some cards also let you withdraw cash directly from an ATM using your card's PIN, though this usually costs more in fees.
Key Takeaways
- Cash back at a store register is cheaper than an ATM withdrawal because ATM cash advances usually charge a higher fee and start accruing interest when ready.
- Credit card cash advances carry interest rates that are often higher than your purchase rate, and interest begins accruing right away with no grace period.
- You can typically get cash back for any amount up to your available credit limit, but the card issuer sets a separate cash advance limit that may be lower.
- Fees for cash advances range from a flat dollar amount to a percentage of the cash withdrawn, and vary by card and issuer.
How cash back at the register differs from an ATM withdrawal
At a store checkout, you request cash back as part of your purchase transaction. The store gives you the cash, and your credit card is charged for both the purchase and the cash amount. This method usually has no fee or a small fee, depending on your card issuer's terms.
At an ATM, you use your credit card's PIN to withdraw cash directly. This is treated as a cash advance from the start, and it almost always costs more. ATM cash advances typically charge a fee (often 3% to 5% of the amount withdrawn, with a minimum of $2 to $5), and interest starts accruing when ready. There is no grace period like there is for regular purchases.
Because of these higher costs, getting cash back at a register is the cheaper option when you have the choice. Many people use ATMs only when they have no other way to get cash.
What interest rates and fees you should expect
Cash advance interest rates are almost always higher than your purchase rate. If your card charges 18% APR on purchases, the cash advance rate might be 24% or higher. This rate applies from the moment you get the cash — there is no grace period, so interest starts accruing when ready.
Fees depend on your card and issuer. A cash advance fee is typically either a flat amount (like $5 or $10) or a percentage of the amount withdrawn (often 3% to 5%). Some cards charge whichever is greater. For example, if your card charges 3% with a $5 minimum, a $100 cash advance would cost $5, but a $200 cash advance would cost $6 (3% of $200).
These costs add up quickly. A $300 cash advance at 24% APR with a 3% fee ($9) costs you $9 upfront plus about $6 in interest per month if you carry the balance. Over six months, you would pay roughly $45 in interest alone.
Your cash advance limit versus your credit limit
Your credit card has two separate limits: your overall credit limit and your cash advance limit. Your cash advance limit is usually much lower — often 10% to 50% of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $500 or $1,000.
This means you could have $3,000 in available credit but only be able to withdraw $500 in cash. The card issuer sets this limit to reduce their risk, because cash advances are riskier than purchases. You can contact your card issuer to ask if they will raise your cash advance limit, but they are not required to do so.
When cash back makes sense and when it does not
Getting cash back at a register makes sense if you need cash and do not have a debit card or ATM access. The fee is usually small or nonexistent, and you are not paying extra interest on top of your regular purchase interest.
An ATM cash advance makes sense only in an emergency — when you absolutely need cash and have no other way to get it. The fees and interest rates are high enough that you should treat it as a last resort.
If you find yourself regularly needing cash advances, that is a sign to reconsider how you are managing money. Carrying a debit card or keeping some cash on hand costs nothing and avoids these fees entirely.
How cash back affects your credit score
A cash advance itself does not directly hurt your credit score the way a late payment does. However, it does count toward your credit utilization — the percentage of your available credit you are using. If you take a large cash advance, your utilization goes up, which can lower your score slightly.
The bigger risk is that cash advances are expensive enough that people sometimes struggle to pay them back, which leads to missed payments. A missed payment will damage your score far more than the cash advance itself.
Alternatives to credit card cash advances
If you need cash, consider these options before using a credit card cash advance. A debit card withdrawal from your own bank account costs nothing. A personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance. A payday loan is expensive but sometimes cheaper than a credit card cash advance if you only need the money for a few days.
If you are in a bind and need cash regularly, the real solution is building an emergency fund — even $500 to $1,000 set aside in a savings account can prevent you from needing expensive cash advances.
Frequently Asked Questions
Can I get cash back if I do not have a PIN for my credit card?
At a store register, you do not need a PIN — you just ask the cashier for cash back when you pay. At an ATM, you do need a PIN. If you do not have one, contact your card issuer to request one, though not all cards allow ATM withdrawals.
Does cash back count as a purchase or a separate transaction?
At a register, cash back is part of your purchase transaction and is treated the same way as the items you bought. At an ATM, it is a separate cash advance transaction with its own fee and interest rate.
What happens if I cannot pay back a cash advance?
If you do not pay it back, interest keeps accruing at your cash advance rate, and the balance stays on your card. If you miss a payment, your credit score will drop and you may face late fees. The card issuer can also raise your interest rate or lower your credit limit.
Is there a grace period for cash advances like there is for purchases?
No. Interest on cash advances starts accruing when ready, even if you pay your bill in full when it arrives. This is one of the main reasons cash advances are so expensive.