Yes, you can use a credit card at an ATM, but it costs you money and works differently than a debit card
Most ATMs accept credit cards, but when you do, you are taking out a cash advance — not withdrawing money from your own account. The ATM charges you a fee (usually $3 to $5 per transaction), your credit card issuer charges you a separate fee (often 3 to 5 percent of the amount withdrawn), and interest starts accruing when ready at a higher rate than your regular purchase APR. There is no grace period. If you need cash, using a debit card, visiting your bank's branch, or getting cash back at a store checkout are almost always cheaper.
The real cost adds up fast. A $200 withdrawal can easily cost you $15 to $25 in combined fees and interest before you even pay back the principal, depending on how long the balance sits on your card. For this reason, credit card cash advances should only be used in genuine emergencies when no other option exists.
Key Takeaways
- A credit card cash advance at an ATM triggers two fees — one from the ATM operator and one from your card issuer — plus when ready interest charges.
- Interest on cash advances starts the day you withdraw the money, with no grace period like you get on purchases.
- The cash advance APR is typically higher than your regular purchase APR, sometimes by 5 to 10 percentage points.
- Debit cards, bank branch withdrawals, and store cash-back options cost nothing or far less than credit card ATM withdrawals.
How the fees and interest work on a credit card cash advance
When you insert your credit card into an ATM and request cash, you trigger three separate charges. First, the ATM operator charges you a fee — typically $2 to $5 depending on the machine and the network. Second, your credit card issuer charges you a cash advance fee, usually 3 to 5 percent of the amount you withdraw (with a minimum of $5 to $10). Third, interest begins accruing on that day at your cash advance APR, which is almost always higher than the APR you pay on regular purchases.
For example, if you withdraw $200 from an ATM using your credit card, you might pay $3 from the ATM operator, $6 to $10 from your card issuer (5 percent of $200), and then interest at 24 to 29 percent APR starting when ready. By the time you pay back that $200, you could easily have paid $15 to $25 in fees and interest combined, depending on how long the balance sits on your card. The longer you carry the balance, the more interest accumulates.
Why the cash advance APR is different from your purchase APR
Credit card issuers treat cash advances as a riskier transaction than a purchase. When you buy something with your card, the merchant guarantees the transaction and you have some consumer protections. When you withdraw cash, there is no merchant, no receipt verification, and no way to dispute where the money went. Because of that risk, card issuers charge a higher interest rate on cash advances.
Your regular purchase APR might be 18 percent, but your cash advance APR could be 24 or 29 percent. Check your credit card agreement or log into your online account to see what your card's cash advance APR is — it is usually listed separately from your purchase APR. The difference matters because interest on a cash advance is not waived during a grace period the way purchase interest sometimes is. Interest starts accruing when ready, with no way to avoid it by paying in full by your due date.
When you might use a credit card at an ATM (and when you should not)
There are very few situations where using a credit card at an ATM makes sense. The main exception is a genuine emergency where you have no other way to access cash and you cannot wait. If your debit card is lost, your bank is closed, and you need cash for a necessary expense, a credit card cash advance is better than nothing. Even then, pay it back as quickly as possible to minimize interest.
Do not use a credit card cash advance to get spending money, to cover a shortfall in your checking account, or to avoid using your debit card. These situations are not emergencies, and the fees and interest will compound quickly. If you are regularly short on cash, that is a sign to review your budget or look into whether you have access to a checking account with overdraft protection or a line of credit with lower rates. Using a cash advance for routine expenses is one of the most expensive ways to borrow money.
Cheaper ways to get cash when you need it
If you have a debit card linked to a checking account, use that at any ATM instead. You will pay the ATM fee (if it is out-of-network), but you will avoid the cash advance fee and the high interest rate. Many banks reimburse out-of-network ATM fees if you maintain a certain balance or have a premium account, so check your account terms.
If you do not have a debit card or your account is frozen, ask for cash back at a grocery store, pharmacy, or other retailer when you make a purchase. Most stores offer this for free or for a small fee, and you get cash without the credit card penalties. If you need cash urgently and have no other option, call your bank's customer service line — some banks can arrange emergency cash access or direct you to a branch location that is open.
How to check your credit card's cash advance terms
Before you ever need cash, log into your credit card account online or call the number on the back of your card and ask for your cash advance APR and cash advance fee. These are required to be disclosed in your card agreement, usually on the first page or in a rates and fees table. Write them down or take a screenshot so you know what you are paying if an emergency happens.
You can also set a cash advance limit on your account — many card issuers let you reduce or eliminate your cash advance limit so you cannot accidentally (or intentionally) take out a large advance. If you never plan to use this feature, lowering the limit is a straightforward way to protect yourself from the temptation or from fraud if your card is compromised. Some issuers even allow you to set the limit to zero.
What happens if you cannot pay back the cash advance right away
If you take out a cash advance and cannot pay it back when ready, the balance will accrue interest at your cash advance APR every single day until it is paid off. Unlike a purchase balance, there is no grace period and no way to avoid interest by paying in full by the due date. The interest is calculated daily and added to your balance.
If the cash advance sits on your card for several months, the interest charges can exceed the original fees you paid. For this reason, if you do take out a cash advance, make it your priority to pay it back within the first billing cycle. Paying it back quickly is the only way to minimize the damage. Even a few weeks of carrying the balance will cost you significantly more than the initial fees.
Frequently Asked Questions
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. ATMs operated by your card's network (Visa, Mastercard, American Express) are most likely to accept it. Some ATMs in small stores or remote locations may not. If an ATM does not accept your card, it will tell you before you insert it.
Is there a limit to how much I can withdraw with a credit card?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your total credit limit. Check your account online or call customer service to find out what your limit is. You cannot withdraw more than that limit in a single transaction or over a billing period.
Does using a credit card at an ATM hurt my credit score?
A single cash advance does not directly hurt your score, but it does increase your credit utilization (the amount of available credit you are using), which can lower your score slightly. If you carry the balance for months, the interest charges and higher utilization will have a bigger impact over time.
What if I need cash but do not have a debit card?
Ask a store cashier for cash back when you make a purchase with your credit card — many retailers offer this for free. You can also visit your bank branch during business hours and withdraw cash directly. If neither option works, a credit card cash advance is a last resort, but pay it back as soon as possible.
Can I use a credit card to withdraw money from my bank account?
No. A credit card is not connected to a bank account. When you use it at an ATM, you are borrowing money from the credit card issuer, not accessing your own funds. To withdraw from your bank account, you need a debit card or to visit a branch in person.