Yes, you can use a credit card at an ATM, but it is a cash advance, not a regular purchase
Most credit cards work at ATMs, but the transaction is treated differently than swiping at a store. When you insert your credit card and withdraw cash, the card issuer treats it as a cash advance — a short-term loan against your credit limit. This matters because cash advances carry higher costs and different rules than regular purchases.
The mechanics are straightforward: you enter your PIN (the same one you use for a debit card), select an amount, and the ATM dispenses cash. But from that moment on, interest and fees start accumulating in ways that regular purchases do not.
Key Takeaways
- Cash advances from a credit card ATM start charging interest when ready, with no grace period like regular purchases have.
- You pay both an ATM fee (set by the ATM operator) and a cash advance fee (set by your card issuer, usually 3 to 5 percent of the amount withdrawn).
- The interest rate on cash advances is typically higher than your regular purchase APR and varies by card and issuer.
- Paying back a cash advance does not reduce your statement balance as quickly as paying back purchases, because payments are applied to purchases first.
The fees you pay when withdrawing cash with a credit card
Two separate fees hit you when you use a credit card at an ATM. The first is the ATM operator fee, charged by whoever owns or operates the machine. This is usually $2 to $4 per transaction, though some machines in tourist areas or casinos charge more. You typically see this fee on your receipt when ready.
The second is the cash advance fee charged by your card issuer. This is a percentage of the amount you withdraw — usually 3 to 5 percent — with a minimum of $5 to $10. So if you withdraw $200, you might pay $6 to $10 in cash advance fees alone, plus the ATM operator fee on top. Check your card's terms or call the issuer to find your exact cash advance fee percentage.
These fees are separate from interest. You pay them once, upfront, whether you pay back the cash advance in full the next day or carry it for months.
How interest on cash advances works differently
Cash advances begin charging interest the moment you withdraw the money. Unlike regular purchases, which have a grace period (usually 21 to 25 days before interest kicks in), a cash advance has no grace period. Interest accrues daily from day one.
The interest rate on cash advances is also typically higher than your regular purchase APR. If your card charges 18 percent APR on purchases, the cash advance APR might be 22 or 25 percent. This varies by card and issuer, so check your card agreement or call customer service to find out your specific rate.
Interest is calculated daily on the outstanding balance and added to your statement each month. If you withdraw $200 at a 24 percent APR, you are paying roughly $4 in interest the first month, more if you do not pay it back.
How payments are applied when you have both purchases and cash advances
If your statement has both regular purchases and a cash advance, your payment is applied to the purchase first. This is a rule set by federal law. So if you owe $500 in purchases and $200 in a cash advance, and you send in a $400 payment, the entire $400 goes toward the $500 purchase balance. The cash advance still sits there, accruing interest at the higher rate.
This means the cash advance can linger on your statement longer than you expect, costing you more in interest. To pay off a cash advance quickly, you may need to make a payment larger than your total balance, or specify in writing that the extra payment should go toward the cash advance.
When using a credit card ATM makes sense
Because of the fees and interest, using a credit card at an ATM is expensive for routine cash needs. But there are narrow situations where it might be your only option. If you are traveling abroad and your debit card does not work, or if you have no access to a debit card and need emergency cash, a credit card ATM withdrawal is better than no cash at all.
Even then, withdraw only what you need and pay it back as soon as possible. A $100 cash advance that you repay within a week costs you roughly $3 to $5 in fees plus a few cents in interest — annoying but survivable. The same advance carried for three months costs you $15 to $20 in interest on top of the fees.
Alternatives to using a credit card at an ATM
If you need cash, a debit card is almost always cheaper. Debit card ATM fees are usually lower, and there is no interest or cash advance fee. If you do not have a debit card, ask your bank about getting one.
If you need cash and have no debit card, ask a store cashier if you can get cash back with a purchase. Many grocery stores, pharmacies, and retailers let you withdraw $20 to $100 at checkout with no fee. You have to buy something, but the fee is zero.
If you are in a bind and need cash urgently, a personal loan or a short-term loan from a credit union is cheaper than a credit card cash advance, even though both charge interest. A credit union loan might charge 12 to 18 percent APR with no upfront fee, versus a credit card cash advance at 24 percent APR plus 5 percent upfront.
What to check before using a credit card at an ATM
Before you withdraw, know your card's cash advance limit. This is separate from your credit limit. Your card might have a $5,000 credit limit but only a $500 cash advance limit. The ATM will reject the transaction if you try to exceed it.
Also check whether your card charges a cash advance fee at all. Some premium cards marketed to high-income customers waive the cash advance fee, though the interest rate is still higher than purchases. If you have such a card, a cash advance is less painful — though still more expensive than a debit card withdrawal.
Finally, make sure you know your PIN. If you have never used your credit card at an ATM, you may need to set a PIN through your issuer's website or app, or by calling customer service. Some cards come with a PIN already set; others require you to create one.
Frequently Asked Questions
Can I use any credit card at any ATM?
Most credit cards work at most ATMs, but some ATMs are restricted to certain networks. Visa and Mastercard are accepted almost everywhere. American Express and Discover are less widely supported. Check the ATM screen before you insert your card — it will show which cards it accepts.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw from an ATM or bank teller. A balance transfer is moving debt from one card to another. Both are treated as loans, not purchases, but they have different fees and interest rates. Cash advances typically cost more.
If I pay back a cash advance the next day, do I still pay interest?
You pay the cash advance fee (the percentage) no matter what. Interest accrues daily, so paying back the next day means you owe one day of interest — usually just a few cents. You still pay the ATM operator fee and the card issuer's cash advance fee upfront.
Can I use a credit card to withdraw cash from my bank's teller window?
Yes, most banks let you do this, and it is treated the same as an ATM withdrawal — a cash advance with fees and interest. Some banks charge a lower fee for teller withdrawals than ATM withdrawals, so it is worth asking.
Does using a credit card at an ATM hurt my credit score?
The withdrawal itself does not hurt your score. But if the cash advance pushes your credit utilization higher (the percentage of your limit you are using), it can lower your score slightly. Paying it back quickly brings your utilization back down.