You can withdraw cash at an ATM using a credit card, but it costs more than a debit card and the money borrowed counts as a cash advance

Most credit cards work at ATMs, but the transaction is treated differently than a purchase. When you use a credit card at an ATM, you are borrowing cash directly from your card issuer, not accessing money you already have. That cash advance starts accruing interest immediately — usually at a higher rate than your regular purchase APR — and you may pay an ATM fee on top of it.

The process itself is straightforward: insert your card, enter your PIN, select "withdrawal" or "cash advance," choose an amount, and take your cash. But the costs and how the transaction reports to your credit report make it worth understanding before you do it.

Key Takeaways

  • A credit card cash advance at an ATM charges interest from day one with no grace period, unlike purchases which may have 21 to 25 days interest-free.
  • You will pay both an ATM operator fee (set by the ATM owner) and a cash advance fee from your card issuer, typically 3 to 5 percent of the amount withdrawn.
  • The interest rate on cash advances is usually 2 to 5 percentage points higher than your regular purchase APR.
  • Cash advances appear on your credit report and count toward your credit utilization, which can lower your credit score.
  • Using a debit card, visiting your bank's own ATM, or withdrawing cash back at a store checkout are cheaper alternatives.

What happens when you insert your credit card into an ATM

The ATM reads your card and connects to your card issuer's system to verify the card is active and you have available credit. It then asks you to enter your PIN — the same four-digit code you use for debit card transactions. If you have never set a PIN for your credit card, you will need to do that through your card issuer's website or app before you can use the card at an ATM.

Once you enter the PIN correctly, the ATM shows your available credit limit and lets you choose how much cash to withdraw. The machine dispenses the cash and prints a receipt. The transaction is recorded immediately on your account as a cash advance, separate from any purchases you make.

The fees you pay for a credit card cash advance

You face two separate fees. The first is the ATM operator fee, charged by whoever owns the ATM — usually a bank, convenience store, or independent ATM network. This fee ranges from $1 to $5 per withdrawal, depending on the ATM location and network. If you use an ATM that does not belong to your card issuer, the fee is typically higher.

The second is the cash advance fee from your card issuer, usually 3 to 5 percent of the amount you withdraw. If you withdraw $200, expect to pay $6 to $10 just in the cash advance fee, plus the ATM operator fee on top of that. Some cards charge a flat fee instead of a percentage — for example, $5 per cash advance — so check your card's terms to know which applies to you.

Interest starts accruing the same day you withdraw the cash. Unlike a purchase, which may have a grace period of 21 to 25 days before interest kicks in, a cash advance has no grace period. You begin paying interest immediately at your cash advance APR, which is typically 2 to 5 percentage points higher than your regular purchase rate.

How a cash advance affects your credit score and report

The cash advance appears on your credit report as a separate line item from your regular purchases. It counts toward your credit utilization ratio — the percentage of your total credit limit you are currently using. If you have a $5,000 credit limit and you take a $500 cash advance, your utilization jumps to 10 percent just from that transaction.

High utilization can lower your credit score, even if you pay the balance in full the next month. The impact is temporary — your score recovers once you pay down the balance — but it is an immediate effect. If you are planning to apply for a loan or another credit card soon, a cash advance can hurt your timing.

When a credit card cash advance makes sense

A cash advance is useful only when you have no other option and you need cash urgently. Examples include a broken ATM at your bank, being in a location where your bank has no branches, or needing cash in a situation where card payment is not accepted.

If you do take a cash advance, pay it back as quickly as possible. Because interest starts immediately and the rate is higher than purchases, the cost compounds fast. A $200 cash advance at 25 percent APR costs about $1.37 per day in interest alone, before the ATM and cash advance fees.

Cheaper ways to get cash without a credit card

If you have a debit card, use that at an ATM instead. Debit card withdrawals do not charge interest because you are accessing your own money, not borrowing. You may still pay an ATM operator fee if you use an out-of-network machine, but that is typically $1 to $3, not 3 to 5 percent of your withdrawal.

Many grocery stores, pharmacies, and retailers offer cash back at checkout when you make a purchase with any card. This is free — no ATM fee, no cash advance fee — and you get the cash immediately. Some banks also reimburse out-of-network ATM fees if you use their checking account, so check whether yours does.

If you are traveling and need cash, visit a branch of your bank or a partner bank in the ATM network your bank belongs to. Most major banks participate in shared networks like Allpoint or MoneyPass, which means you can use thousands of ATMs without a fee.

How to set up a PIN for your credit card

If your card issuer has not assigned you a PIN automatically, you will need to create one before you can use the card at an ATM. Log into your card issuer's website or mobile app, look for a section labeled "Card Settings," "PIN Management," or "ATM PIN," and follow the prompts to set a four-digit code.

Some issuers let you set the PIN immediately online. Others mail you a PIN or require you to call customer service. If you forget your PIN, you can reset it through the same online or app portal, or call the number on the back of your card. The process usually takes a few minutes.

Frequently Asked Questions

Can I use a credit card at any ATM?

Most ATMs accept credit cards, but not all. ATMs at banks, convenience stores, and independent networks typically accept them. Some ATMs in other countries or specialized locations may not. If an ATM does not have a slot for your card, you cannot use it for a cash advance.

What is the difference between a cash advance and a balance transfer?

A cash advance is withdrawing cash at an ATM or from a bank teller, and it charges interest immediately at a high rate. A balance transfer moves debt from one card to another and may have a lower introductory rate for a set period. They are separate transactions with different costs.

Will a cash advance hurt my credit score?

Yes, temporarily. It increases your credit utilization ratio, which can lower your score by a few points. The impact fades as you pay down the balance. If you are applying for a loan soon, avoid cash advances in the weeks before you apply.

Can I dispute a cash advance fee?

You can contact your card issuer to ask them to waive the fee, especially if it is your first cash advance or if you have a long history with the card. They may reverse it as a courtesy, but they are not required to. ATM operator fees cannot be disputed — they are set by the ATM owner.

What happens if I cannot pay back a cash advance?

The balance stays on your card and accrues interest at your cash advance APR until you pay it. If you miss payments, it will be reported to credit bureaus and damage your credit score. Contact your card issuer if you are struggling to pay — they may offer a hardship program or payment plan.