Yes, you can use a credit card at an ATM, but it's treated as a cash advance, not a regular purchase
Most ATMs accept credit cards, and the machine will dispense cash just as it does for debit cards. The difference is what happens next. When you withdraw cash using a credit card, your card issuer treats it as a cash advance — a short-term loan — rather than a purchase. This distinction matters because cash advances carry higher costs and different terms than regular credit card spending.
The cash comes out of the ATM when ready, but you're borrowing money at rates and fees designed to discourage the practice. Credit card companies charge cash advances this way because they're riskier for the lender and because they want you using your card for purchases, not withdrawals.
Key Takeaways
- Cash advances from a credit card start accruing interest when ready, with no grace period like you get on purchases.
- Most credit cards charge a cash advance fee of 3 to 5 percent of the amount withdrawn, on top of a higher interest rate.
- The interest rate for cash advances is typically 2 to 3 percentage points higher than your regular purchase APR.
- You can avoid cash advances by using a debit card, visiting your bank branch, or withdrawing cash back at a store checkout.
How much a cash advance actually costs
A cash advance involves two separate charges: a one-time fee and ongoing interest. The cash advance fee is usually between 3 and 5 percent of the amount you withdraw, though some cards charge a flat fee (often $5 to $10) if that's higher. So if you withdraw $200, you might pay $6 to $10 just to get the cash out.
The interest rate is the larger cost over time. Cash advances typically carry an APR that's 2 to 3 percentage points higher than your regular purchase rate. If your card charges 18 percent APR on purchases, the cash advance rate might be 21 or 22 percent. Unlike purchases, interest begins accruing when ready — there's no grace period. You start paying interest the day you withdraw the cash, even if you pay the full balance when your statement arrives.
A concrete example: withdrawing $300 at 22 percent APR with a 4 percent fee costs you $12 upfront, plus roughly $5.50 in interest if you pay it back in one month. Over three months, the interest alone reaches $16.50. A debit card withdrawal costs nothing.
Why credit card companies structure cash advances this way
Credit card issuers treat cash advances differently because they're fundamentally different transactions. When you make a purchase, the merchant guarantees the transaction and absorbs some fraud risk. When you withdraw cash, there's no merchant, no verification step, and the card issuer has no way to recover the money if something goes wrong.
Cash advances also bypass the card's rewards system. If your card earns 2 percent cash back on purchases, you earn nothing on a cash advance — you only pay fees and interest. This is intentional. Card companies want you using the card for purchases (where they earn interchange fees from merchants) and paying with cash or debit for withdrawals.
When you might use a credit card at an ATM anyway
Despite the costs, some situations make a credit card cash advance the only option. If you're traveling internationally and your debit card doesn't work, a credit card ATM withdrawal might be your only way to get local currency. If your bank has no branches or ATMs nearby and you need cash urgently, the fee might be worth it.
In rare cases, if you're in a financial emergency and your credit card has available balance while your bank account is empty, a cash advance lets you access money when ready. This is expensive and should be temporary — you're borrowing at 20+ percent interest — but it's sometimes the least bad option available.
Most of the time, though, there's a cheaper way. Debit cards, bank branch withdrawals, and cash back at store checkouts all cost nothing.
How to find your card's cash advance terms
Your credit card's cash advance fee and APR are listed in the Schumer Box, a standardized disclosure table on your card's terms and conditions document. You can find this online in your card issuer's website under account details or disclosures, or call the number on the back of your card and ask for the cash advance APR and fee.
Different cards within the same issuer can have different rates. A premium rewards card might charge 5 percent for cash advances, while a basic card charges 3 percent. Some cards don't allow cash advances at all, or limit the amount you can withdraw. Knowing your card's specific terms before you need cash prevents surprises at the ATM.
Alternatives that cost less or nothing
A debit card withdrawal costs nothing and starts no interest clock. If you have a debit card linked to your checking account, use that at any ATM instead. Many banks waive ATM fees for their own machines and reimburse fees at out-of-network ATMs, so the cost is often zero.
Visiting your bank branch during business hours lets you withdraw cash over the counter with no fee. This is slower than an ATM but costs nothing and gives you a receipt when ready. Some banks also offer cash back at store checkouts — you make a small purchase and ask for cash back, which comes out of your checking account with no fee.
If you're traveling and your debit card doesn't work internationally, some credit cards offer better cash advance terms than others, or you can transfer money to a travel-friendly account before you leave. Planning ahead is cheaper than paying 5 percent plus interest at an ATM abroad.
What happens if you can't pay back a cash advance
If you leave a cash advance balance unpaid, it accrues interest at your card's cash advance rate until you pay it off. The interest is calculated daily and added to your balance, so the debt grows faster than a regular purchase balance would. Minimum payments explore to cash advances just as they do to purchases, but minimum payments are usually too small to cover the interest, so your balance can grow even if you're making payments.
A cash advance that turns into long-term debt is expensive. A $500 cash advance at 22 percent APR that you pay off over a year costs roughly $60 in interest alone, plus the original 4 percent fee ($20). That's $80 extra for the privilege of withdrawing your own money. Paying it back as quickly as possible is essential.
Frequently Asked Questions
Can I use any credit card at any ATM?
Most ATMs accept credit cards, but not all. Some machines are set up for debit cards only. Try inserting your credit card; if the ATM rejects it, you'll know when ready. Visa and Mastercard are accepted at the vast majority of ATMs worldwide, while American Express and Discover are less widely supported.
Is there a limit to how much I can withdraw?
Yes. Your credit card issuer sets a cash advance limit, which is often lower than your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call your issuer to find out your specific limit.
Does a cash advance hurt my credit score?
A cash advance itself doesn't directly damage your score, but it increases your credit utilization — the percentage of your available credit you're using. High utilization can lower your score temporarily. The bigger risk is if the cash advance balance goes unpaid and you miss payments, which will hurt your score significantly.
What if I withdraw cash and then return it to the ATM the same day?
You still owe the cash advance fee. The fee is charged when you withdraw, not when you keep the money. Returning it when ready stops interest from accruing beyond that first day, but the upfront fee is already gone. This is why cash advances are expensive even for short-term needs.
Can I use a credit card to withdraw cash from my own bank's ATM?
Only if you're using a credit card, not a debit card. If your bank issued you a debit card linked to your checking account, use that instead — it's free. A credit card withdrawal from any ATM, including your bank's, is treated as a cash advance and charged accordingly.