ATMs accept credit cards, but not the way you might think
Yes, most ATMs will read a credit card, but they do not work like a debit card. An ATM cannot pull money directly from your credit card account. Instead, a credit card at an ATM lets you take out a cash advance — a short-term loan from your credit card issuer. The ATM charges a fee, your card issuer charges a fee, and interest starts accruing when ready, usually at a higher rate than your regular purchase APR.
If you need cash and have a credit card but no debit card, a cash advance is possible. But it costs more than using a debit card or visiting your bank branch, so it should be a last resort, not your regular way to get cash.
Key Takeaways
- A credit card cash advance at an ATM is a loan, not a withdrawal from your own money, and interest begins charging when ready with no grace period.
- You will pay both an ATM operator fee (typically $2 to $5) and a cash advance fee from your card issuer (usually 3 to 5 percent of the amount withdrawn).
- Cash advance interest rates are higher than purchase rates on the same card and vary by issuer, so check your cardholder agreement before you use this feature.
- Not all ATMs accept credit cards — many only take debit cards — so you may need to try multiple machines or visit a bank branch instead.
How a credit card cash advance works at the ATM
When you insert a credit card into an ATM, the machine reads it as a credit product, not a debit account. You enter your PIN (the same one you use for purchases), select the cash advance option, and choose an amount. The ATM dispenses the cash, and the transaction posts to your credit card statement as a cash advance, not a purchase.
The money is borrowed against your credit limit. If your card has a $5,000 limit and you take a $500 cash advance, your available credit drops to $4,500. You owe the full $500 plus fees and interest, and you must repay it through your regular credit card payments.
Fees and interest charges you will pay
A cash advance costs money in three ways. First, the ATM operator fee is charged by the machine owner — typically $2 to $5 per transaction, depending on the ATM network and location. This fee appears on your receipt when ready.
Second, your card issuer charges a cash advance fee, usually 3 to 5 percent of the amount you withdraw. On a $200 cash advance, that is $6 to $10 added to your balance. This fee is set by your bank or credit card company and is listed in your cardholder agreement.
Third, interest accrues from day one. Unlike purchases, which often have a grace period before interest charges begin, cash advances start accruing interest when ready. The interest rate for cash advances is usually 2 to 5 percentage points higher than your regular purchase APR. If your purchase rate is 18 percent, your cash advance rate might be 23 percent. That interest compounds daily until you pay off the balance.
Why not all ATMs accept credit cards
Many ATMs are designed to work only with debit cards and bank accounts. These machines are owned by banks or ATM networks that prioritize debit transactions. A credit card inserted into a debit-only ATM will be rejected.
ATMs that do accept credit cards are more common at independent ATM operators, convenience stores, bars, and casinos — places that profit from the transaction fees. Bank-owned ATMs in bank lobbies often reject credit cards entirely. If you need a cash advance, try an ATM at a convenience store or gas station, or visit your credit card issuer's branch in person and ask the teller to process it there.
When a cash advance makes sense (and when it does not)
A credit card cash advance is expensive and should only be used when you have no other option. If you have a debit card, use that instead — there is no interest charge and the fee is usually lower or zero. If you have access to your bank branch, withdraw cash there for free.
A cash advance might make sense if you are traveling, have lost your debit card, or need cash in an emergency and no ATM accepts your debit card. In those narrow cases, the convenience may be worth the cost. But if you are regularly using credit card cash advances to pay for everyday expenses, you are paying interest on money you do not have, which is a sign your budget needs attention.
How to find out your cash advance limit and rate
Your credit card issuer sets a separate cash advance limit, which may be lower than your overall credit limit. A card with a $5,000 purchase limit might have only a $1,000 cash advance limit. You can find this information in your cardholder agreement, on your monthly statement, or by calling the customer service number on the back of your card.
Ask the representative for three numbers: your cash advance limit, your cash advance APR, and your cash advance fee percentage. Write these down so you know the true cost before you use an ATM. Some issuers also let you check this information through their mobile app or online portal.
Alternatives to a credit card cash advance
If you need cash and do not have a debit card, consider these options first. Visit your bank or credit union branch during business hours and withdraw cash at the teller window — this is free and when ready. Use a peer-to-peer payment app like Venmo, PayPal, or Cash App to send money to a friend or family member who can give you cash. Ask a retailer if they offer cash back when you make a purchase with your credit card — many grocery stores and pharmacies do this at no extra charge.
If none of these work and you must use an ATM, call your card issuer first to confirm the cash advance fee and rate, so you know exactly what you will pay. Then find an ATM that accepts credit cards — your issuer's website usually has an ATM locator tool.
Frequently Asked Questions
Will using a credit card cash advance hurt my credit score?
A single cash advance will not directly damage your score, but it does increase your credit utilization ratio — the amount of your available credit you are using. High utilization can lower your score. If you pay off the balance quickly, the impact is temporary.
Can I use a credit card cash advance to pay a bill?
Technically yes, but it is expensive. You would withdraw cash, then use that cash to pay the bill. You are paying fees and interest on borrowed money to pay an obligation, which costs more than paying the bill directly with your card or a bank transfer.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash at an ATM and charges interest when ready. A balance transfer moves debt from one card to another and may offer a promotional 0 percent interest period. Balance transfers are for moving existing debt; cash advances are for getting cash.
Can I take a cash advance if my credit card is maxed out?
No. Your cash advance limit is part of your overall credit limit. If you have used your full limit, you cannot take a cash advance until you pay down your balance and free up available credit.
How long does it take for a cash advance to show up on my statement?
The transaction posts within one to three business days, depending on your card issuer. Interest starts accruing when ready, even if the transaction has not appeared on your statement yet.