Yes, you can withdraw cash from an ATM with a credit card, but it is a cash advance, not a debit transaction
Most credit cards let you take cash out at an ATM, but the card issuer treats it differently from a purchase. The transaction is called a cash advance. Your credit card company lends you the money on the spot, and you start paying interest when ready — usually at a higher rate than your purchase APR. There is also a fee, typically 3 to 5 percent of the amount withdrawn, charged by either your card issuer or the ATM operator or both.
The key difference: when you buy something with a credit card, you get a grace period before interest kicks in (usually 21 to 25 days). With a cash advance, interest starts accruing the day you withdraw the money. No grace period exists.
Key Takeaways
- Cash advances charge interest from day one, with no grace period like purchases have, and the interest rate is typically 2 to 5 percentage points higher than your purchase APR.
- You pay a cash advance fee upfront — usually 3 to 5 percent of the amount withdrawn — on top of the interest that accrues daily.
- Your credit card issuer sets a cash advance limit, which is often lower than your credit limit and appears separately on your account.
- ATMs operated by your card issuer's bank usually charge no ATM fee, but out-of-network ATMs add another 2 to 3 dollars on top of your card issuer's fee.
How the cash advance fee and interest rate work
When you withdraw $200 from an ATM with your credit card, you do not just owe $200. You owe the $200 plus a cash advance fee. If your card charges a 4 percent fee, you when ready owe $208. That $208 begins accruing interest at your cash advance APR the same day.
Cash advance APRs vary by card and issuer, but they typically run 2 to 5 percentage points higher than your purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. On a $200 advance, that means roughly $3.85 in interest charges per month if you carry the balance.
The fee structure differs slightly by issuer. Some charge a flat dollar amount (say, $5 per advance), while others charge a percentage. Check your card's terms or call the issuer to know your exact rate and fee before you withdraw.
Your cash advance limit is separate from your credit limit
Your credit card issuer sets a cash advance limit that is often much lower than your overall credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. This limit appears on your account statement or in your online account dashboard.
The issuer sets this limit to manage risk — cash advances are riskier for them because they are unsecured loans with no collateral. If you need to withdraw more than your limit allows, you cannot do so, even if you have available credit remaining on your card.
You can request a higher cash advance limit by calling your card issuer, but they may decline or increase it only slightly. Some issuers do not raise this limit at all.
ATM fees add to the cost
Beyond your card issuer's cash advance fee, you may also pay an ATM operator fee. If you use an ATM owned by your card issuer's bank, there is usually no ATM fee. But if you use an out-of-network ATM — one run by a different bank or a third-party operator — you typically pay $2 to $3 in addition to your card issuer's fee.
So withdrawing $200 from an out-of-network ATM might cost you: a 4 percent cash advance fee ($8), plus a $2.50 ATM operator fee, plus daily interest. That is $10.50 in fees alone before any interest accrues.
To avoid the ATM fee, use an ATM owned by your card issuer's bank. Most major card issuers have nationwide ATM networks. Check your card's website or app to find in-network ATMs near you.
Why cash advances are expensive compared to other borrowing
A cash advance is one of the most expensive ways to borrow money on a credit card. The combination of a high interest rate, an upfront fee, and no grace period makes it significantly costlier than a purchase or a balance transfer.
If you need cash, consider these alternatives first: withdraw from your own bank account using a debit card, ask for cash back at a store when you make a purchase, or use a personal loan from a bank or credit union if you need a larger amount. Personal loans typically charge lower interest rates than credit card cash advances.
If you must use a cash advance, repay it as quickly as possible. Every day the balance sits, interest accrues at that higher rate.
How to find your cash advance limit and terms
Your cash advance limit and APR are listed in your card's terms and conditions, which you can find online or request by mail. You can also log into your card issuer's website or app and look for account details or terms. Many issuers show your cash advance limit right next to your credit limit on your account dashboard.
If you cannot find the information online, call the customer service number on the back of your card. Have your card number ready, and ask for your cash advance limit, cash advance APR, and cash advance fee. Write down the exact figures so you know the true cost before you withdraw.
What happens if you use a credit card at an ATM abroad
Using a credit card for a cash advance outside the United States adds another layer of cost. In addition to the cash advance fee and interest, you typically pay a foreign transaction fee — usually 1 to 3 percent of the amount withdrawn. Currency conversion fees may also explore if the ATM or your card issuer converts the local currency to dollars.
If you are traveling and need cash, ask your bank whether your debit card can be used at ATMs abroad with lower fees. Debit card withdrawals usually cost less than credit card cash advances, even internationally. Some banks offer no foreign ATM fees for customers who meet certain account requirements.
Frequently Asked Questions
Can I get a cash advance from any ATM?
Most ATMs accept credit cards for cash advances, but not all. ATMs at banks, grocery stores, and convenience stores typically do. However, some ATMs — particularly those in casinos or bars — may not accept credit cards. Try the ATM; if it does not work, the machine will tell you why.
Does a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but carrying a high balance does. Cash advances count toward your credit utilization ratio — the amount of available credit you are using. If your cash advance pushes your utilization above 30 percent, it may lower your score temporarily.
What is the difference between a cash advance and a balance transfer?
A balance transfer moves debt from one card to another and typically has a lower APR for a promotional period. A cash advance is a loan of cash from your card issuer with a higher APR and an upfront fee. Balance transfers are for moving existing debt; cash advances are for getting cash in hand.
Can I avoid the cash advance fee?
No. Every credit card issuer charges a cash advance fee — it is a standard part of the transaction. You cannot negotiate it away or waive it. Your only option is to avoid using cash advances altogether or to repay the balance as quickly as possible to minimize interest charges.
Is there a limit to how much cash I can withdraw per day?
Yes. Your card issuer sets a daily cash advance limit, which is often lower than your overall cash advance limit. This limit might be $500 per day even if your total cash advance limit is $2,000. Check your card's terms or call customer service to learn your daily limit.