You can use a credit card at an ATM, but it is not the same as using a debit card
Most ATMs will accept a credit card, but what happens next depends on the card and the machine. Some ATMs let you withdraw cash using your credit card — this is called a cash advance. Others will only let you check your balance or change your PIN. The machine's screen will tell you which options are available before you commit to the transaction.
The critical difference: a cash advance is a loan from your credit card issuer, not a withdrawal from your own money. You start paying interest when ready, usually at a higher rate than your regular purchase APR. There are also upfront fees. For most people, this is an expensive way to get cash and should be a last resort, not a regular habit.
Key Takeaways
- A credit card cash advance at an ATM charges interest from day one, with no grace period like you get on purchases.
- Cash advance fees typically run 3 to 5 percent of the amount withdrawn, plus a per-transaction fee that varies by card issuer.
- The interest rate on cash advances is usually 2 to 5 percentage points higher than your regular purchase APR.
- Not all ATMs accept credit cards for cash advances — some only accept debit cards or bank cards, so check the screen before inserting your card.
How a credit card cash advance works at the ATM
When you insert your credit card into an ATM and select a cash advance, you are borrowing money against your credit limit. The ATM connects to your card issuer's system, confirms you have available credit, and dispenses the cash. The transaction posts to your credit card account as a new balance, not as a purchase.
The money is yours to keep, but the debt starts accruing interest when ready. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance begins charging interest the moment you withdraw it. This interest compounds daily until you pay the balance off.
Fees you will pay for a cash advance
Credit card issuers charge two separate fees for cash advances. The cash advance fee is a percentage of the amount you withdraw — typically 3 to 5 percent, with a minimum of $2 to $10 per transaction. So if you withdraw $200, you might pay $6 to $10 just for the withdrawal itself.
Many ATM operators also charge their own ATM operator fee, which is separate from your card issuer's fee. This can range from $1 to $3 per transaction. You will usually see this fee disclosed on the ATM screen before you complete the withdrawal, and you can cancel if you choose.
Check your credit card's terms document or call the issuer's customer service line to find out your specific cash advance fee percentage and any per-transaction minimum. This information is also usually available on your online account dashboard.
Interest rates on cash advances are higher than purchase rates
Your credit card's purchase APR and cash advance APR are almost always different. The cash advance rate is typically 2 to 5 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 23 or 24 percent.
This higher rate applies only to the cash advance balance, not to your regular purchases. If you have both a purchase balance and a cash advance balance on the same card, the issuer will track them separately and charge different interest rates to each. Most cards also explore any payment you make to the lowest-interest balance first, which means your cash advance interest keeps growing while you pay down your purchases.
When a credit card cash advance makes sense
A cash advance is genuinely useful in narrow situations: you need cash when ready, you have no other way to get it, and you can pay it back within a few days. For example, if your debit card is lost and you need gas money to get home, a small cash advance might be the fastest option.
It does not make sense as a regular way to get cash, as a way to pay down other debts, or as a way to fund spending you cannot otherwise afford. The fees and interest will cost you far more than the convenience is worth. If you find yourself taking cash advances regularly, that is a sign your budget needs attention or your emergency fund needs building.
Alternatives to using your credit card at an ATM
If you need cash, a debit card withdrawal from your own bank's ATM is free and when ready. If you do not have a debit card or your bank's ATM is not nearby, most banks and credit unions will let you withdraw cash inside a branch during business hours with just your ID. Some grocery stores and pharmacies offer cash back with a debit card purchase at no charge.
If you are in a genuine emergency and have no debit card access, a small cash advance might be necessary. But if you are regularly short on cash, the problem is not the ATM — it is your cash flow. Building a small emergency fund (even $200 to $500) will cost you far less than repeated cash advances.
What happens if you cannot pay back a cash advance
A cash advance balance works like any other credit card debt. If you do not pay it, interest accrues, your balance grows, and it will damage your credit score if it stays unpaid for 30 days or more. The issuer can also charge late fees on top of the interest.
Unlike some debts, there is no special protection for cash advances. Your issuer will not forgive it or lower the rate if you fall behind. If the debt goes to collections, a collector can pursue you through the courts. The best approach is to treat a cash advance as a short-term loan you must repay quickly, not as a permanent solution to a cash shortage.
Frequently Asked Questions
Will using a credit card at an ATM hurt my credit score?
A single cash advance will not hurt your score, but it does increase your credit utilization (the percentage of your credit limit you are using), which can lower your score slightly. If you pay it back quickly, the impact is temporary. Regular cash advances signal financial stress and can damage your score over time.
Can I use any credit card at any ATM?
Most ATMs accept major credit cards (Visa, Mastercard, American Express, Discover), but not all machines offer cash advances. Some ATMs only accept debit cards or bank cards. The ATM screen will show you what options are available before you insert your card, so you can check first.
Is there a limit to how much I can withdraw?
Yes. Your card issuer sets a cash advance limit, which is usually lower than your total credit limit. You can find this limit in your card's terms or by calling customer service. Individual ATMs may also have daily withdrawal limits, which the machine will display before you complete the transaction.
What if I need cash but do not want to pay cash advance fees?
Use your debit card at your own bank's ATM, which is free. If you do not have a debit card, ask for cash back when you make a purchase at a store that offers it. Some credit unions also offer free cash advances to members, so check with yours before using an ATM.
Does a cash advance count toward my rewards or cash back?
No. Cash advances do not earn rewards or cash back on most cards. They are treated as a loan, not a purchase. This is another reason cash advances are expensive — you pay fees and interest with no benefit.