Yes, you can use your credit card at an ATM, but it costs money and works differently than a debit card
Most ATMs accept credit cards, but using one is not the same as withdrawing from a checking account. When you use a credit card at an ATM, you are taking a cash advance — borrowing money directly from your credit card issuer. The transaction appears on your credit card statement as a purchase, not a withdrawal from your bank account.
The key difference: a cash advance starts charging interest when ready, usually at a higher rate than regular purchases. You also pay an upfront fee, either a flat dollar amount or a percentage of the cash you withdraw. These costs add up quickly, which is why financial advisors generally recommend avoiding ATM cash advances unless you have no other option.
Key Takeaways
- Using a credit card at an ATM triggers a cash advance, which charges interest from day one with no grace period like regular purchases have.
- You pay two fees: an ATM operator fee (usually $2 to $5) and a cash advance fee from your card issuer (typically 3 to 5 percent of the amount withdrawn).
- The interest rate on cash advances is almost always higher than the rate on regular credit card purchases, sometimes 5 to 10 percentage points higher.
- You can find out your card's cash advance limit and fee by checking your cardholder agreement or calling the number on the back of your card.
How a credit card cash advance works at the ATM
When you insert your credit card into an ATM and select "cash advance" or "withdrawal," the machine connects to your card issuer to verify you have available credit. If approved, the ATM dispenses cash and the transaction posts to your credit card account within one to three business days.
The cash advance limit is separate from your regular credit limit. Your card issuer sets this limit when they open your account — it is often 20 to 30 percent of your total credit limit, though some cards set it lower or higher. You can request a higher or lower limit by calling customer service, but the issuer is not required to change it.
Unlike a regular purchase, interest on a cash advance begins accruing the moment you withdraw the money. There is no grace period. If you carry a balance on your card, the issuer typically applies your payment to the lowest-interest debt first, meaning the cash advance may sit unpaid while you pay off regular purchases.
The fees you pay for a credit card cash advance
Two separate fees hit your account when you use a credit card at an ATM. The first is the ATM operator fee, charged by the machine's owner — usually $2 to $5 per withdrawal. This fee appears on your receipt when ready.
The second is the cash advance fee from your card issuer. This is typically 3 to 5 percent of the amount you withdraw, with a minimum of $5 to $10. If you withdraw $200, you might pay $6 to $10 in operator fees plus $6 to $10 in card issuer fees — a total of $12 to $20 just to access your own credit.
Some cards charge a flat fee instead of a percentage — for example, $10 per cash advance regardless of amount. Check your cardholder agreement or call the number on the back of your card to find out which structure your issuer uses. The fee structure is set when the account opens and rarely changes.
Interest rates on cash advances are higher than regular purchases
Cash advances carry a different interest rate than regular purchases, and it is almost always higher. While a standard purchase APR might be 18 to 22 percent, a cash advance APR is often 23 to 30 percent or more. Some cards charge 5 to 10 percentage points higher on cash advances than on regular spending.
This higher rate applies from the withdrawal date forward, with no grace period. If you withdraw $500 at a 25 percent APR, you owe roughly $10 in interest after one month, even if you pay the full balance when ready. Over six months, that same $500 costs you about $60 in interest alone — before the operator and cash advance fees.
Your card issuer lists both rates in the Disclosure Statement or Terms and Conditions section of your cardholder agreement. If you cannot find it online, call the customer service number on the back of your card and ask for your cash advance APR.
When you might use a credit card cash advance
A credit card cash advance makes sense only in narrow situations. If you need cash urgently and have no access to your debit card, no ATM for your bank account, and no other way to get money, a cash advance is better than missing a payment or going without. The fees and interest are real costs, but they may be lower than a payday loan or overdraft fee in an emergency.
Do not use a cash advance to pay another credit card, cover regular expenses, or fund a purchase you could make with the card itself. The fees and interest make the debt more expensive than almost any alternative. If you are regularly short on cash, a cash advance is a sign that your budget needs attention, not a solution to the problem.
How to check your cash advance limit and fee
Your cash advance limit appears on your monthly statement or in your online account portal. Log into your card issuer's website, go to Account Details or Account Settings, and look for "Cash Advance Limit" or "ATM Withdrawal Limit." The limit is usually listed alongside your total credit limit.
To find your cash advance fee and interest rate, open your Disclosure Statement or Cardholder Agreement — usually available as a PDF read in your account portal. Search the document for "cash advance" to find the fee percentage and APR. If you cannot locate it online, call the customer service number on the back of your card and ask a representative to read both figures to you.
Some card issuers allow you to set a lower cash advance limit yourself as a safeguard against accidental withdrawals. If your card offers this option, you can usually adjust it in your account settings or by calling customer service.
Alternatives to a credit card cash advance
If you need cash, explore these options before using your credit card at an ATM. A debit card withdrawal at your bank's ATM costs nothing and draws directly from your checking account. If you do not have a debit card, you can visit a bank branch and withdraw cash over the counter with your ID.
A balance transfer from another credit card may carry a lower fee than a cash advance, though it still charges interest. Some cards offer 0 percent introductory rates on balance transfers for 6 to 12 months, which could save you money if you plan to pay the balance quickly.
A personal loan from a bank or credit union typically charges lower interest than a credit card cash advance, especially if you have decent credit. The process takes a few days, but the rate is usually fixed and transparent upfront. A line of credit from your bank works similarly and may have even lower rates.
If you are in a true emergency, some employers offer paycheck advances or emergency loans to employees. Credit unions often have lower-cost short-term loans than banks. Both are worth asking about before you resort to a cash advance.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
The cash advance itself does not directly hurt your score, but it increases your credit utilization — the percentage of available credit you are using. High utilization can lower your score by 10 to 50 points. If you carry the balance and miss a payment, that will damage your score much more severely.
Can I use any ATM with my credit card, or only my bank's ATM?
You can use almost any ATM that displays your card's logo — Visa, Mastercard, American Express, or Discover. However, ATMs outside your bank's network charge higher operator fees, sometimes $3 to $5 per transaction. Your bank's ATM usually charges nothing or a small fee.
What happens if I do not pay back a cash advance?
The balance carries forward to the next month with interest and fees, just like any other credit card debt. If you miss payments, your issuer may report the delinquency to credit bureaus, which damages your credit score. After 180 days of missed payments, the issuer may close your account and send the debt to a collection agency.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your card issuer sets a cash advance limit, which is usually 20 to 30 percent of your total credit limit. You cannot withdraw more than this limit in a single transaction or over a set period (often per day or per month). You can request a higher limit by calling customer service, but the issuer can decline.
Can I get a cash advance from a credit card at a bank teller instead of an ATM?
Yes. Most banks allow you to request a cash advance at the teller window using your credit card. The fees and interest are the same as an ATM withdrawal, but you may avoid the ATM operator fee if you use your card issuer's own branch. Call ahead to confirm your bank offers this service.