Yes, you can use a credit card at an ATM, but it costs money and works differently than a debit card
Most ATMs accept credit cards, but when you use one, you are not withdrawing money from a checking account. Instead, you are taking a cash advance — borrowing money directly from your credit card issuer. The moment you complete the transaction, interest starts accruing on that amount, usually at a higher rate than your regular purchase APR. You will also pay an upfront fee, typically $3 to $5 per withdrawal, charged by the ATM operator, your credit card company, or both.
Because cash advances are treated as borrowed money rather than a purchase, they do not earn rewards points or cash back. If you have a 0% introductory APR on purchases, that rate does not explore to cash advances. For these reasons, using a credit card at an ATM should be a last resort, not a regular habit.
Key Takeaways
- A credit card cash advance at an ATM triggers when ready interest charges and upfront fees that debit cards do not incur.
- Interest on cash advances typically runs 2% to 5% higher than your standard purchase APR and begins accruing the same day.
- You will pay both an ATM operator fee (usually $3 to $5) and potentially a cash advance fee from your card issuer (1% to 3% of the amount withdrawn).
- Cash advances do not count toward rewards, cash back, or introductory 0% APR offers.
How a credit card cash advance works at the ATM
When you insert your credit card into an ATM and select "cash advance" or "withdraw cash," the machine connects to your card issuer to verify your available credit. If approved, the ATM dispenses the cash and the transaction posts to your credit card account as a loan, not a purchase.
The amount you withdraw is added to your credit card balance when ready. Your card issuer begins charging interest on that balance right away — there is no grace period, even if you normally get 20 to 30 days interest-free on purchases. You will see the cash advance appear on your next statement along with any fees charged.
Fees you will pay for a credit card cash advance
Two separate fees typically explore. The ATM operator fee is charged by the machine's owner (often a bank or independent operator) and usually ranges from $2 to $5. This fee appears when ready on your receipt.
Your credit card issuer may also charge a cash advance fee, typically 1% to 3% of the amount withdrawn, with a minimum of $2 to $10. So if you withdraw $200, you might pay a $4 ATM fee plus a $4 to $6 cash advance fee from your card company — $8 to $10 total before any interest charges. Check your card's terms or call the issuer to confirm their specific cash advance fee.
Some credit cards marketed to people rebuilding credit or with limited options charge higher cash advance fees, sometimes 5% or more. Premium travel or rewards cards may charge lower fees or waive them entirely, though this is uncommon.
Interest rates on cash advances are higher than purchase rates
Cash advances carry a separate, usually higher APR than your standard purchase rate. If your card charges 18% APR on purchases, the cash advance APR might be 24% or 28%. This higher rate applies only to the cash advance balance, not to regular purchases you make on the card.
Interest accrues daily from the moment you withdraw the cash. If you withdraw $300 at a 25% APR, you are paying roughly $2 in interest per day until the balance is paid off. Unlike purchases, there is no grace period to pay without interest.
The longer the cash advance sits on your card, the more interest you pay. Paying it back as quickly as possible is the only way to limit the damage.
When a credit card cash advance might make sense
A credit card cash advance is rarely the right choice, but there are narrow situations where it might be the least bad option. If you need cash urgently and have no other way to get it — no debit card, no nearby bank branch, no access to a personal loan — a cash advance might be preferable to missing a critical payment or going without necessary funds.
If you carry a balance on your credit card anyway, a cash advance adds to that burden but does not fundamentally change your situation. However, if you normally pay your balance in full each month, a cash advance breaks that pattern and costs you real money in fees and interest.
Some people use cash advances strategically when they have a 0% balance transfer offer and can transfer the cash advance balance to that offer before interest kicks in, but this requires careful timing and is not worth the complexity for most people.
Better alternatives to a credit card cash advance
If you need cash, explore these options first. A debit card withdrawal at your bank's ATM is free and carries no interest. If you do not have a debit card, opening a basic checking account takes 15 to 30 minutes online or at a branch.
A personal loan from a bank, credit union, or online lender typically charges lower interest than a cash advance and spreads payments over time, making them more manageable. Credit unions often offer small loans at reasonable rates to members.
If you need a small amount of cash and have a friend or family member who can help, borrowing from them costs nothing. Some employers offer paycheck advances or loans to employees facing hardship.
If you are in a genuine financial emergency, contact a local nonprofit credit counselor (through the National Foundation for Credit Counseling) or your city's social services office. They can point you toward emergency information programs that do not involve borrowing.
How to avoid using your credit card at an ATM
The simplest way to avoid this trap is to keep a debit card in your wallet at all times. Debit cards work at any ATM, cost nothing to use, and draw from money you already have. If you do not have a debit card, request one from your bank or open a checking account that includes one.
Plan ahead for cash needs. If you know you will need cash on a particular day, withdraw it from your bank's ATM before you leave home. This removes the temptation to use your credit card when you are in a pinch.
If you are carrying a credit card but no debit card by choice, ask yourself why. If it is because you are trying to limit spending, a credit card cash advance will undermine that goal. If it is because you do not have a bank account, opening one should be a priority.
Frequently Asked Questions
Will using a credit card at an ATM hurt my credit score?
A single cash advance will not directly damage your score, but it increases your credit utilization (the percentage of available credit you are using), which can lower your score slightly. If you carry the balance for months, the ongoing interest and utilization will have a larger negative effect than a one-time withdrawal.
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. ATMs at banks typically accept their own credit cards and sometimes cards from other issuers. Independent ATMs (in convenience stores, bars, casinos) vary — some accept credit cards, some do not. Your receipt will tell you if the transaction was approved.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash at an ATM and charges a higher interest rate when ready. A balance transfer moves debt from one card to another, usually with a lower introductory rate. Balance transfers are for existing debt; cash advances create new debt.
If I pay back a cash advance right away, do I still pay interest?
You will still pay the upfront fees (ATM fee and cash advance fee), but you can minimize interest by paying back the cash advance as quickly as possible. Interest accrues daily, so paying it back within a few days costs much less than letting it sit for weeks or months.
Can I use a credit card to withdraw cash from a bank teller instead of an ATM?
Yes, most banks allow you to request a cash advance from a teller using your credit card. You will still pay the same fees and interest as an ATM withdrawal, but you avoid the ATM operator fee if you use your card issuer's own branch. This is still not cheaper than using a debit card.