You can withdraw cash at an ATM with a credit card, but it costs you money and starts charging interest when ready
Most credit cards let you take cash out at an ATM, but this is not the same as using your debit card. When you withdraw cash with a credit card, the transaction is called a cash advance. Your card issuer treats it differently from a regular purchase: they charge you a fee upfront, usually 3 to 5 percent of the amount you withdraw, and they begin charging interest on that amount right away — often at a higher rate than your regular purchase APR.
Because of these costs, cash advances should be a last resort, not a regular way to get money. If you need cash regularly, a debit card or a trip to your bank is cheaper. But if you are in a situation where you need cash and have no other option, here is how the process works and what it will cost you.
Key Takeaways
- Cash advances charge a fee (usually 3 to 5 percent) plus interest that starts accruing when ready, making them expensive compared to regular purchases.
- You can withdraw cash at any ATM that displays your card network's logo — Visa, Mastercard, American Express, or Discover.
- Your credit card issuer sets a cash advance limit that may be lower than your overall credit limit, and you can find this limit in your account agreement or by calling customer service.
- The interest rate on cash advances is typically higher than your purchase APR and does not have a grace period, so interest begins the day you withdraw.
- Paying back a cash advance should be your priority because the interest cost grows quickly.
Finding an ATM that accepts your credit card
Not every ATM accepts credit cards — many are set up for debit cards only. Look for an ATM that displays your card network's logo. If your card is a Visa, look for the Visa symbol. If it is a Mastercard, American Express, or Discover card, look for those logos on the machine. Most bank ATMs and many standalone ATMs in convenience stores, casinos, and airports display these logos.
If you are unsure whether a specific ATM will accept your card, call your card issuer's customer service number on the back of your card before you go. They can tell you which ATMs in your area accept credit card cash advances. Some issuers also have ATM locators on their websites or mobile apps.
The steps to withdraw cash at the ATM
The process is straightforward once you find the right machine. Insert your credit card into the ATM slot, just as you would with a debit card. The machine will ask you to enter your PIN — the same four-digit code you use for other card transactions. If you do not have a PIN set up, you will need to contact your card issuer before you can use an ATM.
After you enter your PIN, select "Withdrawal" or "Cash Advance" from the menu. The machine will then ask you how much cash you want. Enter the amount and confirm. The ATM will dispense the cash and return your card. The transaction is complete, but the fees and interest charges have already begun.
Understanding cash advance fees and interest rates
Your card issuer charges two separate costs for a cash advance. The first is an upfront cash advance fee, usually shown as a percentage of the amount you withdraw. Most cards charge between 3 and 5 percent, though some charge a flat dollar amount instead (for example, $5 or $10 minimum). A $200 withdrawal with a 4 percent fee costs you $8 when ready.
The second cost is interest, which begins accruing the day you withdraw the cash. Unlike regular purchases, which often have a grace period before interest kicks in, cash advances start charging interest right away. The interest rate is usually higher than your purchase APR — sometimes 5 to 10 percentage points higher. If your purchase APR is 18 percent, your cash advance APR might be 25 percent. This means a $200 cash advance costs you roughly $4 in interest per month if you do not pay it back when ready.
You can find your card's cash advance fee and APR in your card agreement or by logging into your online account. Call customer service if you cannot find this information — they will tell you both numbers.
Your cash advance limit and how to check it
Your credit card issuer sets a separate cash advance limit that is often much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. This limit protects the issuer from large cash advances that carry higher risk of default.
You can find your cash advance limit in your card agreement, in your online account dashboard, or by calling customer service. If you try to withdraw more than your limit, the ATM will decline the transaction. Knowing your limit ahead of time prevents a failed withdrawal and the embarrassment of a declined card.
Why cash advances are expensive compared to other options
A cash advance is one of the most expensive ways to get money from your credit card. If you need $200, a 4 percent fee plus 25 percent APR costs you $8 upfront and roughly $4 in interest per month. Over three months, you pay $20 in fees and interest — 10 percent of the amount you borrowed.
Compare this to other options: withdrawing from your own bank account costs nothing. Using a debit card costs nothing. Even a personal loan from a bank or credit union usually charges less interest than a cash advance. A payday loan is predatory and should be avoided, but it is still often cheaper than a credit card cash advance if you pay it back within two weeks.
The only situation where a cash advance makes sense is when you have no other way to get cash and you can pay it back within days. If you are using cash advances regularly, that is a sign you need to look at your budget or talk to a financial counselor.
How to pay back a cash advance quickly
Once you have withdrawn cash, paying it back should be your priority. The interest compounds daily, so every day you carry the balance costs you money. When you make a payment to your credit card, the payment goes toward your lowest-interest debt first — usually regular purchases — and your cash advance sits in the background accruing interest.
To pay back a cash advance faster, contact your card issuer and ask if you can designate a payment specifically toward the cash advance balance. Some issuers allow this; others do not. If your issuer does not, you will need to pay down your entire card balance to eliminate the cash advance.
If you withdrew $200 and can pay it back within a week, do so. The fee is already paid, but you will save on interest. If you cannot pay it back for a month, you are paying roughly $4 in interest on top of the $8 fee — a total of $12 to borrow $200 for 30 days.
Frequently Asked Questions
Can I use a credit card at any ATM?
No. The ATM must display your card network's logo — Visa, Mastercard, American Express, or Discover. Many ATMs are set up for debit cards only. If you are unsure, look for the logos on the machine or call your card issuer to find nearby ATMs that accept credit card cash advances.
What is the difference between a cash advance and a regular purchase?
A cash advance charges an upfront fee (usually 3 to 5 percent) and a higher interest rate that starts when ready. A regular purchase has no upfront fee and usually has a grace period before interest begins. Cash advances are much more expensive.
Do I need a PIN to withdraw cash with my credit card?
Yes. If you do not have a PIN set up, contact your card issuer to create one before you visit an ATM. You cannot complete a cash advance without entering your PIN.
What happens if I withdraw more than my cash advance limit?
The ATM will decline the transaction. Your cash advance limit is separate from your overall credit limit and is usually much lower. Call your card issuer to find out your limit before you go to the ATM.
Can I get my cash advance fee back if I pay it off quickly?
No. The fee is charged at the time of withdrawal and is not refunded, even if you pay back the cash advance the next day. You will still owe the fee plus any interest that accrued. This is why cash advances should only be used as a last resort.