Yes, you can use a credit card at an ATM, but it costs money and works differently than a debit card
Most ATMs will accept a credit card, but when you do, you are taking a cash advance — not withdrawing money from a linked account. The ATM dispenses cash directly to you, and your credit card issuer charges you interest on that amount when ready, usually at a higher rate than your regular purchase APR. You also pay a fee from the ATM operator (typically $2 to $5) plus a fee from your credit card company (often 3 to 5 percent of the amount withdrawn).
Because of these costs, using a credit card at an ATM is one of the most expensive ways to get cash. A $200 withdrawal might cost you $10 to $15 in fees alone, plus interest that starts accruing the same day. Most people should avoid this unless they have no other option.
Key Takeaways
- A credit card ATM withdrawal is a cash advance, not a regular transaction, and interest begins accruing when ready with no grace period.
- You pay two separate fees: one to the ATM operator and one to your credit card company, which together can total 5 to 10 percent of the amount withdrawn.
- The interest rate on cash advances is typically 2 to 5 percentage points higher than your regular purchase APR.
- Using a debit card, visiting your bank branch, or getting cash back at a store checkout are all cheaper ways to access cash.
How a credit card cash advance works at the ATM
When you insert your credit card into an ATM and select "cash advance" or "withdraw cash," the machine reads your card and connects to your credit card company's system. The issuer approves the transaction (up to your available credit limit) and the ATM dispenses the cash. That amount is added to your credit card balance as a separate line item, usually labeled "cash advance" or "ATM withdrawal."
Unlike a purchase, which may have a grace period before interest kicks in, a cash advance begins charging interest the moment you withdraw it. There is no interest-free window. The interest rate is set by your card issuer and is printed in your card agreement; it is almost always higher than the rate for regular purchases. If your purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent.
The fees stack on top of the interest. The ATM operator charges you a surcharge (visible on the screen before you confirm), and your credit card company charges a separate cash advance fee, usually calculated as a percentage of the amount withdrawn. A $200 withdrawal with a $3 ATM fee and a 5 percent credit card fee costs you $13 before any interest.
What fees and interest rates to expect
ATM operator fees vary by location and network. Bank-owned ATMs in their own network are often free for customers; out-of-network ATMs typically charge $2 to $5. Some ATMs in bars, casinos, or tourist areas charge $5 or more. The fee appears on the ATM screen before you confirm the withdrawal.
Credit card companies charge a cash advance fee that is either a flat dollar amount or a percentage of the withdrawal, whichever is greater. Common structures are $5 or 3 percent, or $10 or 5 percent. A $100 withdrawal with a 3 percent fee costs $3; a $500 withdrawal with the same 3 percent fee costs $15. Check your card agreement or call your issuer to learn your specific cash advance fee.
Interest on the cash advance accrues daily at your cash advance APR. If you withdraw $200 at 24 percent APR and pay it back in 30 days, you owe roughly $12 in interest alone, on top of the $13 in fees. The longer you carry the balance, the more interest accumulates.
Cheaper ways to get cash
If you need cash, a debit card is almost always cheaper. Debit card ATM withdrawals from your own bank are usually free, and out-of-network debit withdrawals typically charge only the ATM operator fee — no additional percentage-based fee from your bank. You also pay no interest because you are withdrawing your own money, not borrowing.
Getting cash back at a store checkout costs nothing. When you make a purchase at a grocery store, pharmacy, or retailer, you can ask the cashier for cash back and withdraw $20 to $100 (limits vary by store) at no charge. This works with both debit and credit cards, though using a credit card still creates a purchase transaction on your account.
Visiting your bank branch in person lets you withdraw cash from a teller with no fee. If you have time and a branch nearby, this is free and straightforward. Some banks also offer cash withdrawals through their mobile app or by mail for account holders.
When you might use a credit card at an ATM anyway
Despite the cost, there are rare situations where a credit card cash advance is the only option. If you are traveling internationally and your debit card is declined or lost, a credit card ATM withdrawal may be your only way to access funds. If you are in an emergency and have no debit card or cash, the cost of a cash advance is worth it.
Some people use credit card cash advances strategically to meet minimum spending requirements for a sign-up bonus, though this is generally not worth it because the fees and interest exceed the bonus value. Others use a cash advance to pay off a higher-interest debt, but this only makes sense if the cash advance APR is lower than the debt you are paying off — which is rare.
In almost all other situations, the cost of a credit card cash advance makes it a last resort, not a routine way to get cash.
How to avoid needing a cash advance
Plan ahead by keeping a small amount of cash on hand or using your debit card for ATM withdrawals. If you know you will need cash during a trip, withdraw it before you leave or use your debit card at an ATM in your bank's network.
If you are traveling and worried about your debit card being declined, bring two payment methods — your debit card and a credit card — so you have a backup. Notify your bank and credit card company of your travel dates so they do not block transactions as fraud.
Check your credit card agreement to learn your cash advance limit, which is often lower than your credit limit. Knowing this limit helps you understand what you can withdraw if you do need cash in an emergency.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
The ATM withdrawal itself does not hurt your score, but the cash advance increases your credit utilization (the percentage of your credit limit you are using), which can lower your score slightly. Paying back the balance quickly minimizes this impact. The bigger damage comes from carrying the balance long-term and paying high interest.
Can I use any credit card at any ATM?
Most credit cards work at most ATMs, but some ATMs may decline your card if there is a technical issue or if your card issuer has restrictions. Visa and Mastercard are accepted almost everywhere; American Express and Discover are less widely accepted at ATMs. Check with your issuer if you are unsure.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw in cash at an ATM or bank; a balance transfer is moving debt from one credit card to another. Both charge fees and interest, but a balance transfer is used to consolidate debt, while a cash advance gives you physical cash. Cash advances are more expensive.
If I pay back a cash advance right away, do I still pay interest?
Yes. Interest on a cash advance starts accruing the day you withdraw it, with no grace period. Even if you pay it back within a few days, you owe interest for those days. You will also owe the ATM and cash advance fees regardless of how quickly you repay.
Can I use a credit card at an ATM overseas?
Yes, but it is expensive. You pay the ATM operator fee, your credit card company's cash advance fee, and often an international transaction fee (1 to 3 percent). Your credit card company also converts the foreign currency at their exchange rate, which is usually less favorable than the market rate. Use a debit card or withdraw cash before traveling if possible.