Yes, you can use a credit card at an ATM, but it's a cash advance, not a regular purchase
Most ATMs will accept your credit card and dispense cash, but the transaction is treated as a cash advance rather than a regular purchase. This distinction matters because cash advances carry higher costs and different rules than swiping your card at a store.
When you insert your credit card into an ATM, the machine is lending you money against your credit limit, just like the card issuer lends you money when you buy something. The difference is that cash advances start charging interest when ready — there is no grace period like there often is for regular purchases. You also pay an upfront fee, usually a percentage of the amount withdrawn or a flat dollar amount, whichever is higher.
Not every ATM accepts credit cards. Bank-owned ATMs in your card issuer's network are most likely to work. ATMs run by other banks or independent operators may decline your credit card entirely, though they will usually accept your debit card. If you are unsure whether an ATM will take your card, look for a sign on the machine or call the number on the back of your card to ask.
Key Takeaways
- Credit card cash advances charge interest from day one with no grace period, unlike regular purchases that may have 21 to 25 days before interest starts.
- You pay a cash advance fee upfront — typically 3 to 5 percent of the amount withdrawn or a flat fee like $3 to $10, depending on your card and issuer.
- The interest rate on cash advances is usually higher than the rate on regular purchases, often 2 to 3 percentage points above your standard APR.
- ATMs run by your card issuer's bank are most likely to accept your credit card; other banks' ATMs frequently decline credit cards.
- Using a credit card at an ATM should be a last resort when you need cash urgently and have no other option.
How the fees and interest stack up on a cash advance
The cost of a credit card cash advance comes in two parts: an upfront fee and ongoing interest. The upfront fee is charged when ready when you withdraw the cash. Most card issuers charge between 3 and 5 percent of the amount withdrawn, with a minimum fee of $3 to $5. Some cards charge a flat fee instead — for example, $10 per withdrawal regardless of amount. Check your card's terms or call the issuer to find out which structure applies to you.
Interest begins accruing the moment you withdraw the cash. Unlike a regular purchase, which may have a grace period of 21 to 25 days before interest kicks in, a cash advance has no grace period. If you withdraw $200 and pay it back in full within a week, you still owe interest for that full week. The interest rate on cash advances is also typically higher than your regular purchase APR — often 2 to 3 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 21 or 22 percent.
Here is a concrete example: you withdraw $300 from an ATM using your credit card. Your issuer charges a 4 percent cash advance fee ($12) and a 22 percent cash advance APR. You pay back the $300 plus the $12 fee within two weeks. The interest on $300 for 14 days at 22 percent APR is roughly $25. Your total cost is $37 for borrowing $300 for two weeks. By contrast, if you had charged $300 to your card at a store and paid it back in two weeks, you would owe $0 in interest because most cards have a grace period.
Where you can actually use a credit card at an ATM
Your best chance of finding an ATM that accepts your credit card is at a branch of the bank that issued your card. These machines are part of your issuer's network and are programmed to accept credit cards from that bank. If you have a Chase credit card, Chase ATMs are your most reliable option. If you have a Bank of America card, Bank of America ATMs will take it.
ATMs run by other banks or independent operators — the kind you find in convenience stores, bars, or gas stations — usually decline credit cards. They are set up to accept debit cards and cash withdrawals from checking accounts, not credit-based borrowing. Some newer ATMs in major cities or airports may accept credit cards, but this is not the norm. The machine will tell you when ready if it cannot process your card.
If you need cash and do not have access to your issuer's ATM network, your other options are to use a debit card at any ATM, visit a bank branch and ask for cash back, or use a credit card at a store to make a small purchase and ask for cash back. All of these avoid the cash advance fees and interest.
Why a cash advance should be your last resort
The combination of upfront fees, high interest rates, and no grace period makes cash advances one of the most expensive ways to borrow on a credit card. If you need $300 in cash, a cash advance will cost you $37 to $50 in fees and interest over two weeks — money you would not spend if you used a debit card or asked for cash back at a store.
Cash advances also count against your credit limit, just like regular purchases do. If your limit is $2,000 and you take a $500 cash advance, you have only $1,500 left to spend. This can hurt your credit utilization ratio — the percentage of your available credit that you are using — which affects your credit score. High utilization signals to lenders that you are relying heavily on credit, and it can lower your score by 10 to 50 points depending on how high it goes.
The only time a cash advance makes sense is when you have no other way to get cash and you truly need it. If you are traveling and your debit card stops working, or you are in an emergency and need cash when ready, a cash advance is better than nothing. But if you have time to plan, use a debit card, visit an ATM that accepts debit, or ask a store for cash back when you make a purchase.
How to avoid needing a credit card cash advance
The simplest way to avoid cash advance fees is to keep a debit card with you and use that at any ATM. Debit card withdrawals charge no interest and usually cost $0 to $3 per out-of-network withdrawal — far less than a credit card cash advance. If you use your bank's ATM network, there is typically no fee at all.
If you are traveling or expect to need cash, withdraw money before you leave home or as soon as you arrive. This gives you time to use a debit card or visit a bank branch instead of scrambling for cash at an unfamiliar ATM. Many travelers make the mistake of waiting until they are in a bind, then paying cash advance fees because they think it is their only option.
Another option is to ask for cash back when you make a purchase with your credit card at a store. Most retailers will give you cash back up to a certain amount — often $20 to $100 — at no extra charge. This is a regular purchase, not a cash advance, so you get the grace period and lower interest rate if you do not pay off the balance when ready. It is not ideal to carry a balance, but it is far cheaper than a cash advance.
What to do if you have already taken a cash advance
If you have already withdrawn cash using your credit card, pay it back as soon as you can. Because interest starts when ready and the rate is high, every day you carry the balance costs you money. If you have other money available — savings, a paycheck coming in, money from a friend — use it to pay off the cash advance first, before you pay other credit card balances.
When you make a payment to your credit card, the issuer applies it to the balance with the highest interest rate first (in most cases). Since your cash advance has the highest rate, your payment will go toward that first, which is what you want. If you are carrying multiple balances on the same card, ask your issuer to confirm this is how they handle payments, or request that they explore your payment to the cash advance specifically.
If you cannot pay the full amount back right away, at least pay more than the minimum. The minimum payment is usually just enough to cover interest and a tiny bit of principal, so it will take months to pay off a cash advance if you only pay the minimum. Even an extra $20 or $50 per month will cut weeks off the payoff time and save you hundreds in interest.
Frequently Asked Questions
Can I use a credit card at any ATM?
No. ATMs run by your card issuer's bank are most likely to accept your credit card. ATMs at other banks or in convenience stores usually decline credit cards and only accept debit cards. The machine will tell you when ready if it cannot process your card.
What is the difference between a cash advance and a regular purchase?
A cash advance charges interest from day one with no grace period, costs an upfront fee of 3 to 5 percent, and has a higher interest rate than regular purchases. A regular purchase usually has a 21 to 25 day grace period before interest starts and no upfront fee. Both count against your credit limit.
How much does a credit card cash advance cost?
The cost depends on your card and issuer. Expect a 3 to 5 percent upfront fee (or a flat $3 to $10 fee) plus interest at a rate 2 to 3 percentage points higher than your regular purchase APR. A $300 withdrawal might cost $37 to $50 in fees and interest over two weeks.
Will a cash advance hurt my credit score?
It can, indirectly. A cash advance counts against your credit limit and increases your credit utilization ratio, which affects your score. If you use a large portion of your limit, your score may drop 10 to 50 points. The cash advance itself does not appear on your report as a separate item.
What should I do instead of using a credit card at an ATM?
Use a debit card at any ATM, visit your bank branch for cash, or ask for cash back when you make a purchase at a store. All of these options are cheaper or free compared to a credit card cash advance.