You can withdraw cash at an ATM with a credit card, but it costs more than a debit card and starts charging interest when ready
Most credit cards let you withdraw cash at ATMs, but the transaction is treated differently than a purchase. The moment you take the money out, your card issuer charges a cash advance fee — usually 3% to 5% of the amount, with a minimum of $2 to $10. Unlike a purchase, which gives you a grace period before interest kicks in, a cash advance starts accruing interest the same day. That interest rate is typically higher than your regular purchase APR and can run 20% to 30% or more.
Because of these costs, using a credit card at an ATM should be a last resort. If you need cash, a debit card, a bank branch, or a retailer offering cash back will cost you nothing. But if you have no other option, here is how the process works and what to expect.
Key Takeaways
- Credit card cash advances charge a fee (usually 3% to 5%) plus a higher interest rate than purchases, starting when ready.
- You withdraw cash the same way at an ATM as you would with a debit card: insert the card, enter your PIN, select the amount, and confirm.
- Your credit card issuer sets a cash advance limit, which may be lower than your credit limit and is shown in your account or cardholder agreement.
- The transaction appears on your statement as a cash advance, not a purchase, and the balance accrues interest until you pay it off.
- Paying back a cash advance quickly is important because interest compounds daily and the fee is non-refundable.
Find Your Cash Advance Limit Before You Go to the ATM
Your credit card has a separate cash advance limit, which is different from your overall credit limit. This limit is set by your card issuer and is often lower — sometimes 25% to 50% of your total credit limit. If your credit limit is $5,000, your cash advance limit might be $1,000 or $1,500. You cannot withdraw more than this amount, even if you have available credit.
Check your cash advance limit before you head to an ATM. Log into your credit card account online or through the mobile app and look for "cash advance limit" or "cash advance available." You can also call the customer service number on the back of your card. Your cardholder agreement (the document you received when you opened the account) also lists this limit. If you do not know it and cannot check before you leave, the ATM will tell you if you try to withdraw more than allowed.
Set Up Your PIN if You Have Not Already
To withdraw cash at an ATM, you need a PIN (personal identification number), just as you would with a debit card. Many people who have credit cards never set a PIN because they do not plan to use the card for cash. If you have never used your credit card at an ATM before, you will need to create one first.
Set up your PIN through your credit card issuer's website or mobile app. Look for an option like "Set ATM PIN," "Create PIN," or "Manage PIN." You can also call the customer service number on your card and ask them to set one for you over the phone. The PIN is usually four digits, and you choose it yourself. Write it down somewhere safe, or memorize it — do not write it on the card itself.
Insert Your Card and Enter Your PIN at the ATM
The process of withdrawing cash with a credit card is identical to using a debit card at an ATM. Insert your credit card into the ATM slot, with the chip or magnetic stripe facing the direction shown on the machine. The screen will prompt you to enter your PIN. Type in the four-digit number you created and press Enter or Confirm.
The ATM will then ask what you want to do. Select "Withdraw Cash" or "Cash Withdrawal." You will then see a screen asking how much money you want to take out. Enter the amount in dollars (for example, 100 for $100) and confirm. The ATM will show you the fee it is charging — this is the cash advance fee mentioned earlier. Review the total amount that will be deducted from your card and confirm if you want to proceed. The machine will dispense the cash, return your card, and print a receipt.
Understand the Fees and Interest That Start Right Away
The moment you complete the withdrawal, two charges begin. First, the cash advance fee is added to your balance when ready. If you withdraw $100 and your card charges a 5% fee, you owe $105 right away. This fee is non-refundable — you cannot get it back even if you repay the cash advance the next day.
Second, interest begins accruing on the full amount (including the fee) from the day of the withdrawal. Unlike a purchase, which typically has a 21- to 25-day grace period before interest starts, a cash advance has no grace period. If your cash advance APR is 25% and you withdraw $100, you are paying roughly $0.07 per day in interest until the balance is paid off. The longer you carry the cash advance, the more interest compounds.
Check your credit card statement a few days after the withdrawal. The transaction will appear as "Cash Advance" or "ATM Withdrawal," not as a regular purchase. It will show the amount withdrawn, the fee charged, and the interest accrued so far. Some card issuers show the cash advance balance separately from your purchase balance on your statement.
Pay Off the Cash Advance as Quickly as Possible
Because interest starts when ready and compounds daily, paying back a cash advance quickly saves you money. If you withdrew $100 and can repay it within a week, you might pay only $1 to $2 in interest plus the initial fee. If you carry it for a month, interest could add another $2 to $4 or more, depending on your APR.
Make a payment to your credit card as soon as you can. You can pay online through your card issuer's website or app, by phone, or by mail. When you make a payment, the card issuer typically applies it to your highest-interest balance first — in this case, the cash advance — so your payment goes directly toward reducing what you owe on the withdrawal.
If you cannot pay the full amount back when ready, pay as much as you can. Even a partial payment reduces the balance and the interest that accrues on the remainder. Avoid making only the minimum payment, because that will take months to clear the cash advance and cost you significantly in interest.
Know When a Credit Card Cash Advance Makes Sense
A credit card cash advance should only happen when you have no other way to get cash. If you have a debit card, use it instead — there is no fee and no interest. If you can wait until you reach a bank branch, ask the teller for cash back from a deposit or withdrawal. If you are at a store, ask the cashier for cash back when you make a purchase. All of these options are free.
A cash advance might be your only option if you are traveling in a place where your debit card does not work, you have lost your debit card, or you need cash urgently and have no access to your bank. Even then, look for an ATM that belongs to your bank or a bank partner network — some banks waive or reduce cash advance fees for their own ATMs. Before you withdraw, confirm the fee and interest rate so you know exactly what the transaction will cost.
Frequently Asked Questions
Can I use my credit card at any ATM?
Most credit cards work at ATMs worldwide, but not all machines accept credit cards — some accept only debit cards. Look for an ATM that displays your card's logo (Visa, Mastercard, American Express, Discover). If the machine rejects your card, try a different ATM or visit a bank branch. Some ATMs charge an additional surcharge on top of your card issuer's cash advance fee.
What is the difference between a cash advance and a regular purchase?
A purchase has a grace period (usually 21 to 25 days) before interest starts, while a cash advance charges interest from day one. A purchase also has a lower interest rate. A cash advance charges an upfront fee, while purchases do not. Both are added to your credit card balance and must be paid back.
Will a cash advance hurt my credit score?
A single cash advance will not directly damage your credit score, but it increases your credit utilization (the percentage of your credit limit you are using), which can lower your score slightly. Carrying a cash advance balance for a long time and paying interest will not hurt your score, but missing payments will. Pay it back on time to avoid any credit impact.
Can I get my cash advance fee back if I repay it quickly?
No. The cash advance fee is charged when you complete the withdrawal and is non-refundable. Even if you repay the full amount the next day, you keep the fee. This is why paying back a cash advance as soon as possible is important — you cannot recover the fee, but you can minimize the interest by clearing the balance fast.
What if my cash advance limit is too low?
You cannot increase your cash advance limit through an ATM. Contact your card issuer's customer service and ask if they can raise it. Some issuers will increase it if you have a good payment history, while others keep it fixed. If they refuse, you are limited to the amount set on your account.