What happens when you use a credit card at an ATM
When you insert a credit card into an ATM and withdraw cash, you are borrowing money from your credit card issuer, not drawing from a bank account. The ATM dispenses the cash when ready, but the transaction appears on your credit card statement as a cash advance — not a purchase. This distinction matters because cash advances carry different fees and interest rates than regular purchases.
Most credit cards charge a cash advance fee upfront, usually 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10. Interest on the cash advance begins accruing when ready — there is no grace period like there is for purchases. The interest rate for cash advances is often higher than the rate for regular purchases, sometimes 2 to 3 percentage points above your standard APR.
Not all ATMs accept credit cards. Bank ATMs often reject credit cards and only accept debit cards or bank cards. Your best option is an ATM operated by your credit card issuer — for example, if you have a Chase card, a Chase ATM is more likely to accept it. Independent ATMs in convenience stores or bars may also accept credit cards, though they typically charge their own surcharge on top of your card issuer's fee.
Key Takeaways
- Credit card cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than purchases, with interest starting when ready.
- ATMs operated by your credit card issuer are most likely to accept your card; bank ATMs often reject credit cards entirely.
- The cash advance appears on your credit card statement as a separate transaction, not as a purchase.
- Paying back a cash advance should be a priority because the interest cost grows quickly compared to other uses of credit.
Which ATMs will accept your credit card
ATMs fall into three categories: bank-owned, credit card network ATMs, and independent machines. Bank ATMs — the ones inside or outside a bank branch — almost always reject credit cards and only accept debit cards or bank-issued ATM cards. This is by design; banks want to keep cash withdrawals tied to deposit accounts they hold.
ATMs operated by your credit card network are your most reliable option. Visa and Mastercard both run ATM networks, and machines branded with their logos are more likely to accept your card. Amex has a smaller ATM network but does operate machines in some locations. Check your card's website or call the customer service number on the back to find ATMs near you that accept your specific card.
Independent ATMs in convenience stores, bars, gas stations, and casinos often accept credit cards, but they charge their own surcharge — sometimes $3 to $5 per transaction — on top of whatever your card issuer charges. This stacks fees quickly. If you use an independent ATM, you may pay $10 or more in total fees on a $100 withdrawal.
The step-by-step process at the ATM
Insert your credit card into the ATM slot, just as you would a debit card. The machine will prompt you to enter your PIN — the same four-digit code you use for purchases or other card transactions. If you do not know your credit card PIN, you will need to contact your card issuer to set one up before you can withdraw cash; not all credit cards have PINs active by default.
After entering your PIN, select "Withdrawal" or "Cash Advance" from the menu. The ATM will ask you how much cash you want. Enter the amount and confirm. The machine will then display the fee it is charging and ask you to approve the transaction. Review this fee before you proceed — this is your final note to cancel without incurring the charge.
Once you approve, the ATM will dispense the cash and return your card. Take both before you leave. The transaction is complete at that moment, though it may take a day or two to appear on your credit card statement. Check your statement when it posts to confirm the amount and fee are correct.
How cash advance fees and interest work
The fee structure for a cash advance is straightforward but expensive. Your card issuer charges a percentage of the amount withdrawn — typically 3 to 5 percent — with a minimum fee that ranges from $5 to $10. On a $200 withdrawal, a 4 percent fee costs $8. On a $100 withdrawal, the minimum $5 fee applies, making the effective cost 5 percent.
Interest begins accruing on day one. Unlike purchases, which often have a grace period of 20 to 30 days before interest kicks in, cash advances start charging interest when ready. The interest rate is usually higher than your purchase APR — sometimes significantly higher. If your purchase rate is 18 percent, your cash advance rate might be 21 or 22 percent.
The math compounds quickly. A $200 cash advance with a $8 fee and a 21 percent APR costs $8 upfront plus roughly $3.50 in interest per month if you do not pay it back. After three months, you have paid $18.50 in fees and interest alone. This is why financial planning experts recommend treating cash advances as a last resort and paying them back as fast as possible.
When a credit card cash advance makes sense
A cash advance is rarely the best option, but there are narrow situations where it may be necessary. If you need cash urgently and have no other way to get it — no debit card, no access to your bank account, no nearby ATM that accepts debit — a cash advance is better than missing a payment or going without essential funds.
Another scenario is when you are traveling internationally and your debit card does not work. Some travelers use a credit card cash advance at a foreign ATM as a backup, accepting the fees as the cost of access. However, this should be a last resort; most credit cards charge foreign transaction fees on top of cash advance fees, making the total cost very high.
Do not use a credit card cash advance to pay off other debts or to fund regular expenses. The interest rate and fees make it an expensive form of borrowing. If you are regularly short on cash, that signals a budget problem that a cash advance will only make worse.
How to avoid needing a credit card cash advance
The simplest way to avoid cash advances is to keep a debit card linked to a checking account with a small balance reserved for emergencies. This gives you access to cash at any ATM without fees or interest. Even $200 to $300 set aside can cover most unexpected cash needs.
If you do not have a bank account, look into opening a basic checking account at a credit union or online bank. Many have no monthly fees and no minimum balance. This is cheaper and simpler than relying on credit card cash advances.
For regular cash needs, withdraw what you need from your bank account using your debit card. Plan ahead so you are not caught without cash. If you use mostly cards and rarely need physical money, you may not need to withdraw cash at all — many businesses now accept card payments for small amounts.
What to do if you have already taken a cash advance
If you have a cash advance on your credit card statement, prioritize paying it back. The interest rate is higher than almost any other form of credit, so every dollar you pay toward the advance saves you more in interest than paying toward a purchase balance would.
Pay more than the minimum payment if you can. The minimum payment covers interest and a small portion of principal, so it takes a long time to pay off. If you pay $50 per month on a $200 cash advance at 21 percent APR, it will take five months to clear, and you will pay roughly $30 in interest. If you pay $100 per month, you clear it in two months with only $7 in interest.
Going forward, avoid taking new cash advances. If you find yourself needing cash regularly, that is a sign to build an emergency fund or open a bank account. Both are cheaper and simpler than relying on credit card cash advances.
Frequently Asked Questions
Can I use any credit card at any ATM?
No. Bank ATMs usually reject credit cards. ATMs operated by your card issuer or by Visa and Mastercard networks are more likely to accept your card. Independent ATMs in stores and bars may accept credit cards but charge extra fees. Call your card issuer to find ATMs that accept your specific card.
What is the difference between a cash advance and a regular purchase?
A cash advance charges an upfront fee (usually 3 to 5 percent) and a higher interest rate, with interest starting when ready. A purchase has no upfront fee and usually has a grace period of 20 to 30 days before interest begins. Cash advances are much more expensive.
Do I need a PIN to use my credit card at an ATM?
Yes. You need a four-digit PIN to withdraw cash with a credit card. If you have never set one up, contact your card issuer before you go to the ATM. Not all credit cards have PINs active by default.
How long does a cash advance take to show up on my statement?
The transaction is complete when the ATM dispenses the cash, but it may take one to three business days to appear on your credit card statement. Interest begins accruing when ready, even before it shows up in writing.
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 overall credit limit. Check your card's terms or call customer service to find out your limit. The ATM may also have its own daily withdrawal limit.