You can use a credit card at most ATMs, but it will cost you money and count as a cash advance, not a regular purchase
Most ATMs accept credit cards, but the transaction works differently than swiping at a store. When you insert your credit card into an ATM and withdraw cash, your card issuer treats it as a cash advance rather than a regular purchase. This distinction matters because cash advances come with higher fees and interest rates than everyday spending.
The ATM itself does not care whether you use a debit card or credit card — the machine will read either one. But your credit card company cares very much. They charge you a fee (usually 3 to 5 percent of the amount withdrawn, with a minimum of $2 to $10), and they start charging interest on that cash when ready, often at a rate several percentage points higher than your regular APR. There is no grace period like there is for regular purchases.
Key Takeaways
- Credit card cash advances at ATMs trigger a separate fee (typically 3 to 5 percent) plus a higher interest rate than regular purchases.
- Interest on a cash advance begins accruing the same day you withdraw it, with no grace period to pay it back interest-free.
- Your credit card issuer sets a cash advance limit that may be lower than your overall credit limit.
- Using your debit card at an ATM is almost always cheaper than using a credit card, unless your bank charges out-of-network fees.
How credit card cash advances work at the ATM
When you use a credit card at an ATM, you are borrowing money from your credit card issuer the same way you would if you took out a short-term loan. The ATM dispenses the cash, and your credit card account is charged when ready. The issuer then adds a cash advance fee to your balance and begins charging interest at the cash advance rate.
The cash advance rate is set by your card issuer and appears in your card agreement. For most credit cards, this rate is 2 to 3 percentage points higher than the regular purchase APR. If your card has a 20 percent APR for purchases, the cash advance APR might be 23 or 24 percent. That higher rate applies from day one — there is no introductory period or grace period.
Your card issuer also sets a separate cash advance limit, which is often much lower than your overall credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. Check your card agreement or log into your online account to find out what your limit is before you try to withdraw.
Fees you will pay for a credit card ATM withdrawal
Two separate fees explore to a credit card cash advance: one from your card issuer and one from the ATM operator (if it is not your bank's ATM).
Your card issuer charges a cash advance fee, typically 3 to 5 percent of the amount withdrawn, with a minimum charge of $2 to $10. If you withdraw $200, you might pay $6 to $10 just for the privilege of getting the cash. Some card issuers charge a flat fee instead of a percentage — for example, $5 per withdrawal regardless of amount.
The ATM operator may also charge a convenience fee if you are using an out-of-network machine. This fee appears on the ATM screen before you complete the transaction and is typically $2 to $3. If you use an ATM owned by your own bank, this fee is usually waived.
Added together, these fees can make a small cash withdrawal surprisingly expensive. A $100 withdrawal could cost you $8 to $13 in fees alone, plus interest starting when ready.
When a credit card cash advance makes sense
Credit card cash advances are rarely the best option, but there are narrow situations where they might be your only choice. If you have no access to your debit card, your bank is closed, and you need cash urgently, a credit card ATM withdrawal is better than nothing. The fees and interest are real costs, but they are temporary if you pay back the cash advance quickly.
If you do withdraw cash on your credit card, pay it back as soon as possible. Every day the balance sits on your card, interest accrues at that higher cash advance rate. Paying back $200 within a week costs far less than letting it sit for a month.
Do not use a credit card cash advance to fund regular spending or to avoid paying a bill on time. The fees and interest make this an expensive way to borrow money compared to other options like a personal loan or a line of credit.
Better alternatives to credit card ATM withdrawals
Your debit card is almost always the better choice at an ATM. If you use your bank's own ATM, there is no fee at all. If you use an out-of-network ATM, your bank may charge a small fee ($1 to $3), but this is still cheaper than a credit card cash advance fee plus interest.
If you do not have a debit card, ask your bank about getting one. Most checking accounts come with a debit card at no extra cost. If your bank charges a monthly fee for a checking account, look for a bank that does not — many online banks and credit unions offer free checking with a debit card included.
If you need cash and your debit card is not available, consider asking a friend or family member for a short-term loan, or visiting a store that offers cash back when you make a purchase with your debit card. Both options are free and faster than dealing with credit card fees and interest.
How to check your cash advance limit and rate
Before you use a credit card at an ATM, find out what your cash advance limit and rate are. This information is in your card agreement, which you can usually find online in your account portal.
Log into your credit card issuer's website or app. Look for a section labeled "Account Details," "Card Information," or "Terms and Conditions." Search the page for "cash advance" to find your limit and your cash advance APR. If you cannot find it online, call the customer service number on the back of your card and ask.
Knowing these numbers ahead of time prevents you from being surprised at the ATM. If your cash advance limit is $300 and you try to withdraw $500, the machine will decline the transaction. If your cash advance APR is 25 percent, you will know exactly how much interest you are paying for the convenience.
What happens if you use a credit card at an ATM in another country
Using a credit card at an ATM abroad adds another layer of fees. In addition to the cash advance fee and interest, your card issuer may charge a foreign transaction fee (typically 1 to 3 percent) and the ATM operator may charge a currency conversion fee.
If you are traveling and need cash, ask your bank before you leave whether they have a partnership with banks in your destination country. Some banks waive ATM fees for customers who use partner ATMs abroad. You might also look for a travel-friendly debit card or a prepaid card that charges lower foreign fees than a credit card.
Frequently Asked Questions
Will using a credit card at an ATM hurt my credit score?
The withdrawal itself does not hurt your score, but the cash advance balance does count toward your credit utilization ratio. If your cash advance pushes your total credit card balance higher, it may lower your score slightly. Paying off the cash advance quickly will minimize this impact.
Can I get a cash advance from a credit card at a bank teller instead of an ATM?
Yes. You can walk into any bank branch (not necessarily your own bank) and ask for a cash advance on your credit card. The teller will process it the same way an ATM does — you will pay the same fees and interest. Some banks may charge an additional fee for this service.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash and charges a higher interest rate. A balance transfer moves debt from one credit card to another, usually at a lower introductory rate. They are different transactions with different fees and terms.
If I withdraw cash on my credit card, can I use it to pay a bill?
Yes, you can use the cash for anything. But you are paying cash advance fees and interest to get that cash, so it is an expensive way to pay a bill. It is cheaper to pay the bill directly from your bank account or debit card if you can.
Do all credit cards allow cash advances at ATMs?
Most do, but some cards restrict cash advances or do not allow them at all. Check your card agreement or call your issuer to confirm. Secured credit cards and some student cards may have lower cash advance limits or higher fees than standard cards.