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 taking a cash advance — not withdrawing money from a checking account. The ATM treats it as a short-term loan against your credit limit. You will pay a fee to the ATM operator (usually $3 to $5), a fee from your credit card issuer (typically 3% to 5% of the amount withdrawn), and interest that starts accruing when ready, often at a higher rate than your regular purchase APR.
Because of these costs, using a credit card at an ATM should be a last resort, not a regular habit. If you need cash regularly, a debit card or a trip to your bank's branch is far cheaper.
Key Takeaways
- A credit card cash advance at an ATM triggers two separate fees — one from the ATM operator and one from your card issuer — plus interest that begins right away.
- Interest rates on cash advances are typically higher than the rate you pay on regular purchases, and no grace period applies.
- You can usually withdraw up to your credit limit, but many issuers set a lower cash advance limit as part of your account terms.
- Using your debit card, visiting your bank branch, or using a peer-to-peer payment app costs nothing and should be your first choice for getting cash.
How the fees stack up when you take a cash advance
When you insert your credit card into an ATM and select "cash advance" or "withdraw cash," two fees hit your account almost when ready. The ATM operator fee appears on the ATM screen before you complete the transaction — you can decline at that point. This fee ranges from $2 to $5 depending on the ATM network and whether it is at your bank or an independent operator.
Your credit card issuer also charges a cash advance fee, typically 3% to 5% of the amount you withdraw. On a $200 withdrawal, that is $6 to $10 before you have even left the ATM. This fee is added to your credit card balance.
Interest begins accruing on the cash advance the same day you withdraw it — there is no grace period like there is for regular purchases. If your card's cash advance APR is 24% and you withdraw $200, you are paying roughly $0.13 per day in interest until you pay it back.
Cash advance limits and how to find yours
Your credit card issuer sets a separate cash advance limit that may be lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. This limit protects the issuer from large cash advances and is set based on your credit history and account terms.
To find your cash advance limit, log into your online account or mobile app — most issuers display it alongside your credit limit. You can also call the customer service number on the back of your card. If you try to withdraw more than your limit, the ATM will decline the transaction.
Some issuers let you request a higher cash advance limit, but there is no reason to do so unless you have a genuine emergency. The fees and interest make cash advances expensive no matter the amount.
Why the interest rate is higher for cash advances
Credit card issuers charge a different (and higher) APR for cash advances than for regular purchases. While your standard purchase APR might be 18%, your cash advance APR could be 24% or higher. This difference exists because cash advances are considered riskier — you are borrowing money directly rather than making a purchase that has an underlying asset.
The higher rate applies from day one. With a regular purchase, you get a grace period (usually 21 to 25 days) before interest kicks in if you pay in full. Cash advances have no grace period. Interest starts accruing when ready, making them one of the most expensive ways to borrow money on a credit card.
When a credit card cash advance makes sense
A credit card cash advance is rarely the right choice, but there are narrow situations where it might be your only option. If you are traveling abroad and your debit card is lost or stolen, a cash advance from your credit card might be the fastest way to get local currency. If a business accepts only cash and you have no other way to pay, a small advance might be necessary.
In almost every other situation, there is a cheaper alternative. If you need cash at home, visit your bank branch or use your debit card at an ATM in your bank's network (usually free). If you need to send money to someone, use a peer-to-peer app like Venmo or PayPal. If you are traveling, notify your bank in advance and use ATMs affiliated with your bank or a partner network.
How to minimize damage if you must take a cash advance
If you have no choice but to use a credit card at an ATM, take these steps to keep the cost as low as possible. First, withdraw only what you absolutely need — every dollar you advance costs you in fees and interest. Second, pay it back as fast as you can. The longer the balance sits, the more interest accumulates.
Third, use an ATM in your card issuer's network if possible. Many issuers waive or reduce the ATM operator fee for their own machines. Check your card's website or app to find ATMs in your issuer's network before you withdraw.
Finally, do not make a habit of it. If you find yourself regularly taking cash advances, that is a sign you need to rethink your cash management or your budget. One advance is an emergency; multiple advances suggest a deeper problem.
Debit cards, bank branches, and other ways to get cash for free
Your debit card is almost always the better choice. Using your debit card at an ATM in your bank's network costs nothing. If you use an out-of-network ATM, you may pay a small fee (usually $1 to $3), but that is still cheaper than a credit card cash advance.
Walking into your bank branch and asking the teller for cash is free and gives you a chance to ask questions about your account. Many banks also offer cash back at grocery stores and pharmacies when you make a debit card purchase — no fee, no interest, no hassle.
If you need to send cash to someone, apps like Venmo, PayPal, Square Cash, and Zelle let you transfer money directly from your bank account for free. The recipient can withdraw it at an ATM or keep it in the app.
Frequently Asked Questions
What is the difference between a cash advance and a regular credit card purchase?
A regular purchase is a transaction with a merchant; a cash advance is a loan against your credit limit. Purchases get a grace period before interest applies if you pay in full. Cash advances charge interest when ready, at a higher rate, and cost an upfront fee from both the ATM operator and your card issuer.
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. ATMs at banks, airports, and major networks almost always do. Independent ATMs in bars or convenience stores may not. The ATM screen will tell you if it accepts credit cards before you insert your card.
Will a cash advance hurt my credit score?
A single cash advance will not directly damage your score, but it increases your credit utilization (the amount of your credit limit you are using), which can lower your score slightly. Repeated cash advances signal financial stress and can hurt your creditworthiness over time.
How long does it take to pay back a cash advance?
You can pay back a cash advance anytime, just like any other credit card balance. The sooner you pay, the less interest you owe. There is no minimum time period, but interest accrues daily until the balance is zero.
Can I request a lower cash advance limit to protect myself?
Yes. Calling your card issuer and asking them to lower your cash advance limit to $0 or a very small amount prevents you from accidentally taking an expensive advance. This is a useful safeguard if you know you are vulnerable to impulse borrowing.