Yes, you can get cash back on most credit cards, but it costs you
You can withdraw cash using a credit card at an ATM or by asking a cashier for cash back at checkout. The transaction is not free — your card issuer charges a cash advance fee, usually 3% to 5% of the amount you withdraw, with a minimum fee of $5 to $10. You also start paying interest on that cash when ready, often at a higher rate than your regular purchase APR. Most credit cards charge between 20% and 30% annual interest on cash advances, and that interest begins accruing the day you withdraw the money, with no grace period.
Cash back at a store checkout is the cheapest option if you need cash. You ask the cashier to add a cash amount to your purchase, and the total is charged to your card. This method usually carries no fee and no separate interest rate — the cash is treated like a regular purchase. However, you can only use this option when you are already making a purchase at a participating store.
Key Takeaways
- Cash back at checkout during a store purchase is free and charges your regular purchase interest rate, making it the lowest-cost way to get cash from a credit card.
- ATM cash advances charge a separate fee (typically 3% to 5%) plus a higher interest rate (often 20% to 30% APR) that starts accruing when ready with no grace period.
- The total cost of an ATM cash advance on a $200 withdrawal could be $10 to $15 in fees alone, plus daily interest charges.
- Debit cards, bank transfers, and payday loans are usually cheaper alternatives if you need cash urgently.
How cash advance fees and interest work
When you withdraw cash from an ATM using your credit card, two separate charges hit your account. The first is the cash advance fee, charged by your card issuer. This fee is a percentage of the amount withdrawn — typically 3% to 5% — with a floor of $5 to $10. So a $100 withdrawal might cost $5 to $10 in fees alone. A $500 withdrawal could cost $15 to $25.
The second charge is interest. Cash advances do not get a grace period like regular purchases do. Interest begins accruing the day you withdraw the money, at the cash advance APR, which is separate from and usually higher than your purchase APR. If your card charges 18% APR on purchases, it might charge 28% APR on cash advances. That interest compounds daily, so the longer you carry the balance, the more you pay.
Some ATMs also charge their own fee — $2 to $5 — on top of your card issuer's fee. If you use an out-of-network ATM, both fees explore. A $100 withdrawal could end up costing you $10 to $15 in fees before any interest is charged.
Cash back at checkout versus ATM withdrawals
The difference between these two methods is significant. When you ask for cash back at a store, the amount is added to your purchase total and charged to your credit card like a normal transaction. You pay no separate fee, and the cash advance interest rate does not explore — instead, you pay your regular purchase APR, which is lower. If you have a 0% introductory APR on purchases, cash back at checkout may be included in that offer, though you should check your card's terms.
An ATM withdrawal, by contrast, is treated as a separate transaction. Your card issuer charges the cash advance fee when ready, and interest starts accruing at the higher cash advance rate right away. Over time, this difference compounds. A $200 cash back at checkout on a card with 18% purchase APR costs you roughly $3 in interest per month if you carry the balance. The same $200 from an ATM on a card with 28% cash advance APR costs you roughly $4.67 per month in interest, plus the upfront fee.
The practical limit on cash back at checkout is usually $100 to $500 per transaction, depending on the store and your card. ATMs have their own limits, typically $300 to $500 per withdrawal, though some cards allow multiple withdrawals in a day.
When you might need cash and cheaper alternatives
Credit card cash advances are expensive enough that you should explore other options first. If you need cash for an emergency, a debit card withdrawal from your own bank account costs nothing. If you do not have a debit card or your account is empty, a personal loan from a bank or credit union usually charges less interest than a credit card cash advance — often 6% to 36% APR depending on your credit score and the lender.
A balance transfer to a different credit card might make sense if you are carrying a large cash advance balance. Some cards offer 0% APR on balance transfers for 6 to 21 months, though they charge a 3% to 5% transfer fee upfront. This works only if you can pay off the balance before the promotional period ends.
If you are in a true emergency and have no other option, a credit card cash advance is available when ready, but the cost is high. A $500 ATM withdrawal could cost $25 to $50 in fees and interest over the first month alone. Borrowing from a friend or family member, if possible, costs nothing. A payday loan is another option, though these typically charge 400% APR or higher and should be a last resort.
How to minimize the cost if you do take a cash advance
If you have already withdrawn cash or need to do so, you can reduce the damage. First, pay it back as fast as possible. Every day the balance sits on your card, interest accrues at the higher cash advance rate. If you can repay the full amount within a week, the interest charge will be minimal.
Second, use cash back at checkout instead of an ATM whenever you can. Even if you have to buy something you were going to buy anyway, the fee savings and lower interest rate make it worth the trip. A $100 cash back at checkout costs you nothing upfront and charges your regular purchase rate. A $100 ATM withdrawal costs $5 to $10 in fees plus higher interest.
Third, check whether your card offers any promotional periods. Some cards waive the cash advance fee for the first 60 days after opening, or offer a lower cash advance APR during an introductory period. Read your card's terms or call the issuer to ask.
What your credit card statement will show
Cash advances appear on your statement as a separate line item from your regular purchases. You will see the withdrawal amount, the cash advance fee, and the interest charged. The cash advance balance is often listed separately from your purchase balance, and the two may have different interest rates and minimum payment requirements.
If you make only the minimum payment, the credit card company typically applies that payment to your lowest-interest balance first — usually your regular purchases — and leaves the cash advance balance to accrue interest. This means a cash advance can sit on your card for months even if you are making payments. To pay off a cash advance faster, you may need to make a payment specifically toward that balance or pay more than the minimum.
Frequently Asked Questions
Does cash back at checkout hurt my credit score?
No. Cash back at checkout is treated like a regular purchase and does not affect your credit score differently than any other transaction. It does increase your credit utilization — the percentage of your credit limit you are using — which can temporarily lower your score if you are already using a high percentage of your limit.
Can I use a credit card to withdraw cash from my bank account?
No. A credit card is a line of credit, not a debit card. You cannot withdraw money from a bank account using a credit card. You can only borrow cash against your credit limit, which is treated as a cash advance and charged the fees and interest described above.
What if I cannot pay back a cash advance?
The balance will continue to accrue interest at the cash advance APR until it is paid. If you miss payments, your credit score will drop, and the card issuer may increase your APR or close your account. Contact your card issuer to discuss a payment plan if you are struggling.
Do all credit cards charge cash advance fees?
Nearly all credit cards charge cash advance fees. Some cards marketed to people with poor credit may have higher fees. A few premium cards may offer lower cash advance fees or waive them temporarily, but these are rare. Check your card's terms or call the issuer to confirm the fee before you withdraw cash.
Is a cash advance the same as a balance transfer?
No. A cash advance is money you borrow against your credit limit and withdraw as cash. A balance transfer is moving a balance from one credit card to another. Balance transfers usually have lower fees and APRs than cash advances, but they do not give you cash — the money goes directly to pay off the other card.