Yes, but it's a cash advance, not a regular purchase
You can use most credit cards at an ATM to withdraw cash, but the transaction is treated as a cash advance, not a purchase. This distinction matters because cash advances carry higher fees and interest rates than regular credit card charges. The moment you insert your card and withdraw money, your card issuer begins charging you differently than it would for buying something at a store.
Not every credit card works at every ATM. Your card issuer controls which ATM networks your card can access. Visa and Mastercard credit cards typically work at ATMs branded with their logo or affiliated networks. American Express and Discover cards have smaller ATM networks, so you may have fewer options. Some cards don't allow cash advances at all — check your cardholder agreement or call the number on the back of your card to confirm whether yours does.
Key Takeaways
- Cash advances from a credit card ATM are charged as a separate transaction type with higher interest rates and when ready fees, not as a regular purchase.
- Most credit cards charge a cash advance fee of 3 to 5 percent of the amount withdrawn, plus interest that starts accruing when ready with no grace period.
- Your card issuer sets a cash advance limit that is usually lower than your overall credit limit, so you may not be able to withdraw as much as you can spend.
- Debit cards and bank ATM cards are cheaper ways to get cash because they draw from your own money and carry only a small out-of-network fee if any.
How much a cash advance actually costs
The cost of a credit card cash advance has two parts: an upfront fee and interest that starts when ready. The upfront fee is typically 3 to 5 percent of the amount you withdraw, though some cards charge a flat dollar amount instead (often $3 to $10). A $200 withdrawal at 4 percent costs $8 right away. That fee is added to your credit card balance.
Interest on a cash advance begins accruing the day you withdraw it — there is no grace period like there is for purchases. If your card's cash advance interest rate is 24 percent (which is common), that $200 withdrawal costs you roughly $4 per month in interest alone if you carry the balance. Pay it back in full within a few days and the interest charge is small. Carry it for months and the interest dwarfs the original fee.
Some cards charge a different interest rate for cash advances than for purchases. Check your cardholder agreement or call your issuer to find out what rate applies to cash advances on your specific card. The rate is often higher than your purchase rate.
Your cash advance limit is separate from your credit limit
Your credit card issuer sets a cash advance limit that is independent of your overall credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Some cards set the cash advance limit at 20 to 30 percent of your credit limit; others set it lower or higher. A few cards have no cash advance limit at all, but these are rare.
You cannot increase your cash advance limit by paying down your balance or improving your credit score — the limit is fixed by your issuer's policy. If you need to know your cash advance limit, log into your online account, check your statement, or call the number on the back of your card. Trying to withdraw more than your limit will be declined at the ATM.
Out-of-network ATM fees add another layer of cost
If you use an ATM that is not owned or operated by your card issuer's bank, you may face an additional out-of-network fee. This fee is charged by the ATM operator (not your card issuer) and typically ranges from $1 to $3. Some ATMs in bars, convenience stores, or casinos charge $3 to $5 per transaction.
You will usually see the out-of-network fee amount on the ATM screen before you complete the withdrawal and have the option to cancel. If you proceed, the fee is added to your cash advance balance. Using an ATM owned by your card issuer's bank or a partner network avoids this fee entirely. Many card issuers publish lists of partner ATM networks on their websites.
Why a debit card or bank account is usually better for cash
If you have a debit card or a checking account with an ATM card, using that to withdraw cash is almost always cheaper than using a credit card. A debit card withdrawal is not a loan — it comes directly from your own money. You pay no interest and no cash advance fee. You may pay an out-of-network fee if you use an ATM outside your bank's network, but that fee is typically $1 to $2, far less than a credit card cash advance.
If you do not have a debit card or bank account, a credit card cash advance is an option, but it should be a last resort for emergencies only. The cost compounds quickly if you cannot pay back the full amount within a few days. Carrying a cash advance balance for weeks or months is one of the most expensive ways to borrow money on a credit card.
What happens if your card issuer declines the cash advance
If you try to withdraw cash and the ATM declines your card, the most common reason is that you have reached your cash advance limit. The second most common reason is that your card issuer has flagged the transaction as potentially fraudulent — this happens more often with cash advances than with regular purchases because they are less common and higher-risk for the issuer.
If your card is declined, do not keep trying at different ATMs. Each attempt may trigger a fraud alert or count against you. Instead, call your card issuer's customer service number (on the back of your card) to ask why the transaction was declined. They can tell you whether it is a limit issue, a fraud hold, or something else. If it is a fraud hold, they can clear it when ready. If it is a limit issue, they may be able to increase your cash advance limit temporarily, though this is not may provide.
Comparing credit card cash advances to other borrowing options
| Method | Upfront Cost | Interest Rate | When Interest Starts |
|---|---|---|---|
| Credit card cash advance | 3–5% fee | 18–28% typical | when ready |
| Credit card purchase | None | 18–28% typical | After grace period (usually 21 days) |
| Debit card ATM withdrawal | $1–3 out-of-network fee only | None | N/A |
| Personal loan from a bank | None or origination fee | 6–36% depending on credit | After first payment period |
| Payday loan | $15–20 per $100 borrowed | 400%+ APR equivalent | when ready |
A credit card cash advance is more expensive than a regular purchase on the same card because of the when ready fee and interest with no grace period. It is cheaper than a payday loan but more expensive than a personal loan from a bank if you have decent credit. If you need cash in an emergency and have a debit card, that is your cheapest option by far.
Frequently Asked Questions
Does using a credit card at an ATM hurt my credit score?
The cash advance itself does not directly damage your credit score, but it does increase your credit utilization (the percentage of your available credit you are using), which can lower your score slightly. If you carry the cash advance balance for months without paying it off, the impact on your score will be larger. Paying it back quickly minimizes the damage.
Can I use a credit card at a bank teller to get cash instead of an ATM?
Yes. Most banks will give you a cash advance over the counter if you present your credit card, even if it is not their bank. The fee and interest rate are the same as an ATM withdrawal. Some banks charge an additional teller fee for this service, so ask before you request it. This method does not avoid the cost — it just gives you another way to access the cash advance.
What if I withdraw cash but then return it to the ATM — do I get the fee back?
No. The cash advance fee is charged the moment you complete the withdrawal, not when you keep the money. If you withdraw $200, pay a $8 fee, and then deposit the $200 back into the ATM, you still owe the $8 fee. Interest will have also started accruing. Returning the cash does not reverse the transaction.
Is there a daily limit on how much I can withdraw?
Yes. Your card issuer sets a daily cash advance limit that is separate from your overall cash advance limit. This daily limit is often $500 to $1,000, but it varies by card and issuer. You can find your daily limit in your cardholder agreement or by calling your issuer. If you need more cash than your daily limit allows, you will have to wait until the next day to withdraw more.
Can I use a credit card at an international ATM?
Yes, but the cost is higher. In addition to the cash advance fee and interest, you will pay a foreign transaction fee (usually 2 to 3 percent) and possibly an ATM operator fee in the foreign country. The exchange rate used may also be less favorable than the official rate. If you are traveling, a debit card or a travel-specific card with no foreign transaction fees is a much cheaper way to get local currency.