Yes, you can withdraw cash from an ATM with a credit card, but it costs you money and starts charging interest immediately
Most credit cards let you take cash out at an ATM, but this transaction is called a cash advance, and it is treated differently from a regular purchase. The moment you withdraw the money, your card issuer charges you a cash advance fee — typically 3% to 5% of the amount withdrawn, with a minimum fee of $3 to $10. You also start paying interest on that cash immediately, usually at a higher rate than your purchase APR. There is no grace period. If your purchase APR is 18%, your cash advance APR might be 24% or higher.
The card issuer decides which ATMs you can use. Visa and Mastercard let you use most ATMs worldwide, but American Express and Discover have smaller networks. Your own bank's ATM is usually free, but out-of-network ATMs often charge an additional fee from the ATM operator — $2 to $4 on top of your card's cash advance fee.
Key Takeaways
- A cash advance fee of 3% to 5% is charged the moment you withdraw cash, separate from any ATM operator fee.
- Interest on cash advances starts accruing immediately with no grace period, and the APR is usually higher than your purchase rate.
- Your credit card's cash advance limit may be lower than your credit limit, and you can find it in your cardholder agreement or by calling your issuer.
- Using a debit card, getting cash back at a store, or borrowing from a friend costs less than a credit card cash advance.
How the cash advance fee works
The fee is calculated as a percentage of the amount you withdraw and is charged to your account immediately. If you withdraw $200 and your card charges a 4% cash advance fee, you owe $8 plus the $200 itself. Some cards cap the fee at a maximum amount — for example, $10 maximum — which means withdrawing $500 might cost you $10 instead of $20.
This fee appears on your statement as a separate line item, usually labeled "Cash Advance Fee" or "ATM Withdrawal Fee." It is not part of the cash amount; it is added to your balance. You must pay this fee even if you pay off the cash advance in full the next day.
Interest charges on cash advances
Interest on a cash advance begins accruing on the day you withdraw the money. Unlike purchases, which often have a grace period of 20 to 25 days before interest kicks in, cash advances have no grace period. If you withdraw $200 on January 15, you are charged interest starting January 15, even if you pay it back on January 16.
The interest rate for cash advances is set by your card issuer and is stated in your cardholder agreement. It is almost always higher than your purchase APR. A card with an 18% purchase APR might charge 24% or 25% on cash advances. Interest is calculated daily on your cash advance balance and added to your account monthly.
If you carry a balance on both purchases and cash advances, most card issuers apply your payment to the purchase balance first, leaving the cash advance to accrue interest longer. Check your cardholder agreement to confirm your card's payment allocation policy.
Your cash advance limit versus your credit limit
Your card issuer sets a separate cash advance limit, which may be much lower than your total credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. You cannot withdraw more than this limit, even if you have available credit for purchases.
You can find your cash advance limit in your cardholder agreement, on your online account dashboard, or by calling your card issuer's customer service number on the back of your card. If you need to know the limit before you go to an ATM, call ahead rather than discovering it at the machine.
Which ATMs accept credit cards and which do not
Most ATMs in the United States accept Visa and Mastercard, but not all. Visa and Mastercard operate networks that include ATMs from many banks and independent operators. American Express and Discover have smaller ATM networks; you may need to use their branded ATMs or partner locations. Your card issuer's website usually has an ATM locator tool that shows you which machines accept your card.
International ATMs vary widely. Visa and Mastercard are accepted in most countries, but fees are often higher abroad. Some foreign ATMs charge $5 to $10 in addition to your card's cash advance fee. Before traveling, check your cardholder agreement for the foreign cash advance fee and APR, which may differ from your domestic rates.
Cheaper ways to get cash
A debit card withdrawal costs nothing and does not charge interest. If you have a debit card linked to a checking account, use it instead of a credit card at an ATM. Many grocery stores, pharmacies, and retailers offer cash back when you make a purchase with a debit card or credit card, and this is free if you use a debit card. Some credit cards offer cash back as a reward, but this is different from a cash advance — it is a credit applied to your statement, not cash in your hand.
Borrowing cash from a friend or family member, using a personal loan from a bank or credit union, or visiting your bank branch to withdraw from a savings account are all cheaper than a credit card cash advance. If you need cash regularly, opening a checking account with a debit card is the lowest-cost option.
What happens if you cannot repay a cash advance
If you do not pay back the cash advance, it becomes part of your credit card balance and accrues interest at your cash advance APR. This balance is reported to the credit bureaus and affects your credit score if it raises your credit utilization ratio. Missing payments on a cash advance can result in late fees, a higher APR on your entire card balance, and damage to your credit report.
If you are struggling to repay, contact your card issuer to discuss a payment plan or hardship program. Some issuers offer temporary interest rate reductions or payment deferrals, though these are not may provide. Paying at least the minimum payment on time is critical to avoid further penalties.
Frequently Asked Questions
Does using a credit card at an ATM count as a purchase or a cash advance?
It is always a cash advance, not a purchase. The moment you withdraw cash, the cash advance fee and higher interest rate apply. This is true even if you use the same card for both purchases and cash withdrawals.
Can I avoid the cash advance fee by paying back the money immediately?
No. The cash advance fee is charged when you withdraw the money, regardless of when you repay it. You will owe the fee even if you pay back the $200 the next day. However, paying it back quickly does reduce the total interest you pay.
What is the difference between a cash advance and a balance transfer?
A cash advance is cash withdrawn from an ATM. A balance transfer is moving debt from one card to another. Both have fees and higher interest rates than purchases, but they are separate transactions with different terms.
Will a cash advance hurt my credit score?
A single cash advance does not directly hurt your score, but it increases your credit utilization ratio if it raises your total balance. High utilization can lower your score. Missed payments on a cash advance will damage your score significantly.
Can I use a credit card at an ATM outside the United States?
Yes, but expect higher fees. Most Visa and Mastercard ATMs accept U.S. cards abroad, but foreign ATM operators often charge $5 to $10 per withdrawal in addition to your card's cash advance fee. Check your cardholder agreement for the foreign cash advance APR before traveling.