Yes, you can use your credit card at an ATM, but it costs money and works differently than a debit card
Most ATMs will accept your credit card, but when you do, you are taking out a cash advance — not withdrawing money from your own account. The ATM treats it as a short-term loan from your credit card issuer. You will pay a fee to the ATM operator (usually $2 to $5), and your credit card company will charge you an additional cash advance fee (typically 3% to 5% of the amount withdrawn, with a minimum of $5 to $10). Interest on the cash advance starts accruing when ready — there is no grace period like there is for regular purchases.
Because of these costs, using your credit card at an ATM is expensive compared to using a debit card or withdrawing cash inside a bank branch. Most people should avoid it unless they have no other option.
Key Takeaways
- A credit card cash advance at an ATM triggers two separate fees: one from the ATM operator and one from your credit card company.
- Interest on a cash advance begins when ready and is usually higher than the rate on regular purchases, with no grace period.
- The total cost of withdrawing $100 in cash via credit card can easily reach $8 to $15 when you add both fees and the interest that accrues.
- Using your debit card, visiting a bank branch, or using a fee-free ATM in your bank's network costs far less or nothing.
How the two fees work
When you insert your credit card into an ATM and select "cash advance" or "withdrawal," the machine first charges you an ATM operator fee. This is the fee the ATM owner charges for letting you use their machine. It typically ranges from $2 to $5 and appears on your receipt when ready. You pay this fee whether or not the transaction goes through.
Your credit card company then charges a separate cash advance fee on top of that. This fee is usually 3% to 5% of the amount you withdrew, with a minimum charge (often $5 to $10). So if you withdraw $100, you might pay $3 to $5 in the cash advance fee alone, plus the $2 to $5 ATM fee. That is $5 to $10 in fees before interest is even calculated.
Some credit cards offer slightly lower cash advance fees or waive them for certain cardholders, but this is rare. Check your cardholder agreement or call your card issuer to learn what your specific card charges.
Interest rates and when they start
Cash advances have a higher interest rate than regular credit card purchases. While a typical purchase might carry an APR (annual percentage rate) of 15% to 25%, a cash advance often carries 25% to 30% or higher. This rate is set by your card issuer and is listed in your cardholder agreement.
The critical difference: interest on a cash advance starts accruing the day you withdraw the money. There is no grace period. With a regular purchase, you typically have 21 to 25 days before interest kicks in if you pay the full balance. With a cash advance, interest begins when ready, even if you pay it back within days.
If you withdraw $100 at a 28% APR and pay it back after one week, you will owe roughly $0.54 in interest alone, on top of the $5 to $10 in fees. The longer you carry the balance, the more interest accumulates.
When you might actually use a credit card at an ATM
Because of the cost, most people should not use a credit card at an ATM. But there are rare situations where it might be necessary. If you are traveling internationally and your debit card does not work, a credit card cash advance might be your only way to get local currency quickly. If you have a genuine emergency and no access to your debit card or bank account, a cash advance is better than nothing.
Even in these situations, withdraw only what you absolutely need and pay it back as soon as possible. The longer the balance sits, the more interest you pay.
Cheaper ways to get cash
Before you use your credit card at an ATM, try these options first:
- Use your debit card at an ATM in your bank's network. Most banks offer free withdrawals at their own ATMs and at ATMs in partner networks (like Allpoint or MoneyPass). Check your bank's website to find participating ATMs near you.
- Withdraw cash inside a bank branch. Walk into your bank during business hours and ask a teller for cash. This is always free and requires no card at all — just your ID.
- Get cash back at a store. When you buy something with your debit card at a grocery store, pharmacy, or retailer, you can ask for cash back. The store gives you the amount in cash, and it is deducted from your account. There is no fee.
- Use a fee-free ATM network. Some banks and credit unions partner with networks like Allpoint, MoneyPass, or CO-OP that offer free withdrawals to members. If your bank participates, you have access to thousands of free ATMs.
What happens after you take out a cash advance
The cash advance appears on your credit card statement as a separate line item from your regular purchases. It shows the amount withdrawn, the cash advance fee, and the interest charged. You are required to pay at least the minimum payment on your credit card bill, which includes the cash advance balance.
If you only pay the minimum, the remaining cash advance balance carries over to the next month and continues to accrue interest at the higher cash advance rate. This is why paying back a cash advance quickly is so important — every day it sits unpaid, you are losing money to interest.
The cash advance also counts toward your credit utilization ratio, which affects your credit score. If your credit limit is $5,000 and you take out a $500 cash advance, your utilization jumps to 10% (or higher if you have other balances). High utilization can lower your credit score temporarily.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
Not directly, but it can indirectly. The cash advance counts toward your credit utilization, so a large advance might raise your utilization ratio and lower your score slightly. If you carry the balance and miss payments, that will hurt your score more seriously. Paying it back quickly minimizes any impact.
Can I use a credit card at any ATM?
Most ATMs accept credit cards, but not all. Some ATMs only accept debit cards or bank cards. Look for the Visa, Mastercard, or American Express logo on the machine before you insert your card. If the machine does not display your card's logo, it likely will not accept it.
What is the difference between a cash advance and a regular purchase?
A regular purchase is charged to your credit card and you pay interest only if you carry a balance past the grace period. A cash advance is treated as a loan, charges fees when ready, and interest starts accruing right away with no grace period. Cash advances also have higher interest rates than purchases.
Can I get a cash advance without going to an ATM?
Yes. You can visit a bank branch and ask for a cash advance on your credit card. Some banks will do this for free or a lower fee than an ATM. You can also use a credit card at a casino cage or certain other locations, though these often charge high fees too. Always ask about the fee before you proceed.
What if I cannot pay back the cash advance right away?
Pay as much as you can as quickly as you can. The balance will accrue interest at your cash advance rate (usually 25% to 30% APR) every single day until it is paid off. If you can only afford the minimum payment, the remaining balance will grow due to interest. Consider this before taking out a cash advance in the first place.