What happens when you use a credit card at an ATM
When you insert a credit card into an ATM and withdraw cash, you are taking a cash advance. This is different from a debit card withdrawal. The ATM is lending you money against your credit limit, not pulling from a bank account you own. That borrowed money starts accruing interest when ready — usually at a higher rate than your regular purchase APR — and there is often an upfront fee as well.
Most credit card companies charge a cash advance fee of 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10. Interest on cash advances typically starts the day you withdraw, with no grace period like you get on purchases. For these reasons, using a credit card at an ATM should be a last resort, not a regular habit.
Not all ATMs accept credit cards. Bank ATMs usually do, but many standalone ATMs in convenience stores or bars only accept debit cards. The ATM screen will tell you whether your card is accepted before you insert it.
Key Takeaways
- A credit card cash advance at an ATM charges a fee (usually 3 to 5 percent) plus interest that starts when ready, making it expensive compared to using a debit card.
- You need your credit card's PIN to withdraw cash; if you do not have one, contact your card issuer before visiting an ATM.
- The amount you can withdraw is limited by your available credit and your card's daily cash advance limit, which is often lower than your total credit limit.
- Interest on cash advances accrues from day one with no grace period, so the longer you carry the balance, the more you pay.
- Bank ATMs are more likely to accept credit cards than standalone machines in retail locations.
Finding your credit card PIN
To withdraw cash from an ATM using a credit card, you must have a PIN (personal identification number). This is a four-digit code separate from your card's CVV security code. If you have never set one, you need to create it before you go to the ATM.
Contact your credit card issuer — the phone number is on the back of your card — and ask to set up or reset your PIN. Some card companies let you set it online through your account portal. Others require a phone call. The process usually takes a few minutes, and your PIN becomes active when ready or within a few hours.
Write down your PIN and store it somewhere safe, separate from your card. Do not use an obvious number like your birth year or a sequence like 1234. If you forget your PIN, call your card issuer again and they will reset it.
Steps to withdraw cash at the ATM
Once you have your PIN, the withdrawal process is straightforward. Insert your credit card into the ATM slot. The machine will prompt you to enter your PIN on the keypad. Press the numbers carefully — if you enter the wrong PIN three times, the ATM will keep your card.
Select "Withdraw Cash" or "Cash Advance" from the menu. The ATM will show you your available credit limit. Enter the amount you want to withdraw. The machine will confirm the amount and show you the fee that will be charged. Review this before you proceed — this is your final note to cancel without being charged.
If you confirm, the ATM will dispense the cash and print a receipt. Take both. The receipt shows the amount withdrawn, the fee charged, and the date. Keep it to track the transaction on your statement.
Understanding cash advance limits and fees
Your credit card has two separate limits: your total credit limit and your cash advance limit. The cash advance limit is usually much lower — often 10 to 30 percent of your credit limit. If your credit limit is $5,000, your cash advance limit might be $500 to $1,500. You cannot withdraw more than this amount, even if you have available credit remaining.
Check your card's terms or log into your online account to find your cash advance limit. Some card issuers let you lower this limit yourself as a safety measure against fraud. If you need to know your exact limit before going to the ATM, call the customer service number on your card.
The fee structure varies by card. Some charge a flat fee ($5 or $10), others charge a percentage of the amount withdrawn, and some charge whichever is higher. A $200 withdrawal with a 5 percent fee plus a $5 minimum means you pay $10 in fees alone. That $200 now costs you $210 before any interest charges.
How interest accrues on cash advances
Interest on a cash advance begins accruing the day you withdraw the money. Unlike regular credit card purchases, which have a grace period (usually 21 to 25 days before interest kicks in), cash advances have no grace period. Every day the balance sits on your card, interest is being added.
The interest rate for cash advances is separate from your purchase APR and is almost always higher. If your purchase APR is 18 percent, your cash advance APR might be 25 or 28 percent. This rate is applied daily to your outstanding cash advance balance.
To minimize interest, pay off the cash advance as soon as you can. If you withdraw $200 at a 25 percent APR and carry it for 30 days, you will owe roughly $4.11 in interest alone, on top of the initial fee. The longer you wait, the more you pay.
When to use a credit card cash advance and when to avoid it
A credit card cash advance should only be used when you have no other option. If you need cash and have access to a debit card, ATM withdrawal from your own bank account, or a personal loan, those are almost always cheaper. A debit card withdrawal costs nothing. A personal loan or line of credit typically has a lower interest rate than a cash advance.
The only scenario where a cash advance makes sense is a genuine emergency — you need cash when ready and have no other way to get it. Even then, treat it as a short-term bridge and pay it back within days, not weeks. The fees and interest compound quickly.
If you find yourself regularly needing cash advances, that is a sign your budget needs adjustment or you need a different financial tool. Consider opening a checking account with a debit card, or asking your credit card issuer about a lower-interest cash line of credit.
Frequently Asked Questions
Can I use any ATM to withdraw cash with my credit card?
Most bank ATMs accept credit cards, but many standalone ATMs in stores or bars only accept debit cards. The ATM screen will tell you whether your card is accepted before you insert it. If you are unsure, ask the business where the ATM is located, or call your card issuer to find ATMs that accept credit cards.
What if I forgot my credit card PIN?
Call your credit card issuer using the number on the back of your card and ask to reset your PIN. They can usually set a temporary PIN over the phone or let you create a new one online. The new PIN becomes active within hours. Do not attempt to guess your PIN at an ATM — three wrong attempts will lock your card.
Will a cash advance hurt my credit score?
A cash advance itself does not directly hurt your score, but carrying a high balance does. Cash advances count toward your credit utilization ratio (how much of your available credit you are using). If your cash advance pushes your utilization above 30 percent, it can lower your score. Paying it off quickly minimizes this impact.
Can I withdraw cash from an ATM in another country with my credit card?
Yes, but expect additional fees. Most credit card issuers charge a foreign transaction fee (1 to 3 percent) on top of the cash advance fee and interest. Some also charge a currency conversion fee. Before traveling, call your card issuer to ask about their international ATM fees and whether they recommend using a different card or method to get cash abroad.
Is there a daily limit on how much I can withdraw?
Yes. Your card has a daily cash advance limit separate from your total credit limit. This limit varies by card and issuer, typically ranging from $200 to $1,000 per day. Check your card's terms or call your issuer to find out your specific daily limit. If you need more than the daily limit allows, you will need to make multiple withdrawals on different days.