Yes, you can withdraw cash from an ATM using a credit card, but it costs more than a debit card and works differently than you might expect
Most credit cards allow you to take cash out at ATMs, but the transaction is called a cash advance, not a regular withdrawal. The moment you pull money out, your card issuer treats it as a loan to you, not a purchase. This distinction matters because cash advances carry their own fees and interest rates — usually higher than what you pay on regular purchases.
The process itself is straightforward: insert your card into an ATM, select "cash advance" or "withdraw cash" (the exact wording varies by machine), enter your PIN, and choose your amount. The money comes out immediately. But what happens after that withdrawal is where the cost difference shows up.
Key Takeaways
- Cash advances charge a separate fee (usually 3% to 5% of the amount withdrawn) plus a flat fee per transaction, on top of higher interest rates than purchases.
- Interest on cash advances starts accruing immediately with no grace period, even if your card normally gives you 21 days interest-free on purchases.
- Your credit card's cash advance limit is often lower than your overall credit limit, so you may not be able to withdraw as much as you can spend.
- ATM operators may also charge their own fee (typically $2 to $3) on top of your card issuer's cash advance fee.
- Debit cards, bank transfers, or cash-back at stores are almost always cheaper ways to get cash than a credit card cash advance.
How cash advance fees and interest actually work
When you take a cash advance, your card issuer charges you two things immediately: a cash advance fee and interest that starts right away. The cash advance fee is usually a percentage of the amount you withdraw — typically 3% to 5% — with a minimum flat fee (often $5 to $10). So if you withdraw $200, you might pay $6 to $10 just for taking the money out, depending on your card's terms.
The interest rate on cash advances is separate from your purchase APR and is almost always higher. Where your purchases might carry an APR of 15% to 25%, cash advances often run 25% to 30% or more. Unlike purchases, there is no grace period: interest starts accruing the day you withdraw the cash, even if you pay off the balance immediately the next day.
This means a $200 cash advance that you repay within a week could cost you $6 to $10 in fees plus $1 to $2 in interest — roughly 3.5% to 6% of the amount withdrawn just to borrow money for seven days. Compare that to using a debit card (no fee, no interest) or asking for cash back at a store (free), and the credit card option becomes expensive fast.
Your cash advance limit versus your credit limit
Credit card issuers set a separate cash advance limit that is usually much lower than your overall credit limit. If your card has a $5,000 credit limit, your cash advance limit might be $1,000 or $1,500. This limit exists because cash advances are riskier for the issuer — they are unsecured loans with no collateral, and the issuer has less ability to recover the money if you default.
You can find your cash advance limit by logging into your online account, calling the customer service number on the back of your card, or checking your cardholder agreement. The limit applies across all ATMs and cash advance sources, so if you withdraw $500 at one ATM, your remaining cash advance limit drops to $500 (or whatever it was minus $500).
Some cards allow you to request a higher cash advance limit, but issuers rarely grant these requests. If you regularly need cash, this is a sign that a credit card cash advance is not the right tool for your situation.
ATM operator fees on top of card issuer fees
Beyond what your card issuer charges, the ATM operator may charge their own fee. If you use an out-of-network ATM — one that does not belong to your card issuer's bank — the operator typically charges $2 to $3 per transaction. Some ATMs charge more, especially in high-traffic areas like airports or casinos.
This fee is separate from your card issuer's cash advance fee. So a $200 withdrawal might cost you $6 (card issuer fee) plus $2.50 (ATM operator fee) plus interest, totaling $8.50 or more before interest even accrues for a full day. Using an ATM owned by your card issuer's bank (if available) eliminates the operator fee but not the card issuer's cash advance fee.
When a credit card cash advance makes sense
Credit card cash advances are rarely the best option, but a few situations exist where they might be worth considering. If you have an emergency and no other way to get cash, and you can repay the advance within a few days, the total cost might be acceptable. A $300 advance repaid in three days might cost $10 to $15 total — not ideal, but manageable in a true emergency.
Another scenario: if you are traveling internationally and your debit card does not work, a credit card cash advance at a local ATM might be your only option. The fees are still high, but you have no alternative. In this case, withdraw larger amounts less frequently to minimize the number of fees you pay.
Outside of emergencies or travel, there is almost always a cheaper way to get cash. Asking for cash back at a grocery store or pharmacy is free. Transferring money from a savings account to a checking account and using a debit card costs nothing. Even a payday loan, while expensive, is often cheaper than a credit card cash advance if you need money for just a few days.
How to check if your card allows cash advances
Most credit cards allow cash advances, but some do not. Business cards and certain rewards cards occasionally restrict them. Your cardholder agreement lists whether cash advances are available and what the fee and interest rate are. You can also call the customer service number on the back of your card and ask directly.
The agreement will specify your cash advance limit, the percentage fee (usually listed as "cash advance fee"), any flat fee per transaction, and the APR for cash advances. Read this section carefully before you need cash, so you know exactly what it will cost.
Cheaper alternatives to credit card cash advances
If you need cash and want to avoid credit card fees, consider these options first: ask for cash back when you buy something at a store (free, and you get the cash immediately); transfer money from savings to checking and use your debit card (free); use a peer-to-peer payment app like Venmo or PayPal to send money to someone who can give you cash (free or very low fee); or visit your bank's branch and withdraw from your own account (free).
If you do not have access to any of these options and genuinely need a short-term loan, a credit card cash advance is an option — but only after you have exhausted the free alternatives and understand the full cost.
Frequently Asked Questions
Does using a credit card at an ATM count as a purchase or a cash advance?
It depends on what you select on the ATM screen. If you choose "withdraw cash" or "cash advance," it is treated as a cash advance with fees and higher interest. Some ATMs also offer a "balance inquiry" option, which is free. Never assume — always read the screen carefully before confirming the transaction.
Can I use my credit card PIN at any ATM?
Yes, your credit card PIN works at any ATM that accepts your card's network (Visa, Mastercard, American Express, or Discover). However, out-of-network ATMs will charge you an operator fee on top of your card issuer's cash advance fee. Using an ATM owned by your card issuer's bank eliminates the operator fee.
What happens if I do not repay a cash advance right away?
Interest accrues daily at your cash advance APR until you repay it. If you withdraw $300 and do not pay it back for a month, you will owe the $300 plus the cash advance fee plus roughly $7 to $8 in interest (depending on your APR). The longer you carry the balance, the more interest you pay.
Is there a limit to how much cash I can withdraw?
Yes. Your cash advance limit (set by your card issuer) is the maximum you can withdraw. This limit is usually much lower than your overall credit limit. Some ATMs also have daily withdrawal limits, typically $500 to $1,000, which may be lower than your card's cash advance limit.
Will a cash advance hurt my credit score?
A single cash advance will not directly damage your score, but it does increase your credit utilization (the percentage of your available credit you are using). If your cash advance pushes your total balances higher, your utilization goes up, which can lower your score slightly. Paying off the advance quickly brings utilization back down.