Yes, you can use most credit cards at ATMs, but it works differently than a debit card and costs you money

You can withdraw cash from an ATM using a credit card, but the transaction is treated as a cash advance, not a regular purchase. This distinction matters because cash advances come with higher fees and interest rates than regular credit card charges. Most credit card issuers allow cash advances at ATMs that display their network logo — Visa, Mastercard, American Express, or Discover — though some cards restrict this feature.

The moment you withdraw cash, your credit card company charges you an upfront fee, typically between 3% and 5% of the amount withdrawn. On top of that fee, interest starts accruing when ready at a rate that is usually 5 to 10 percentage points higher than your regular purchase APR. Unlike purchases, which often have a grace period before interest kicks in, cash advances begin charging interest the same day you withdraw the money. There is no interest-free window.

Key Takeaways

  • Cash advances from a credit card ATM charge an upfront fee (usually 3% to 5%) plus a higher interest rate than regular purchases, with no grace period.
  • Interest on cash advances begins accruing when ready, so even a short-term withdrawal costs more than borrowing through a regular purchase.
  • Your credit card issuer sets the cash advance limit separately from your credit limit, and it is often lower.
  • ATM operators may also charge their own fee on top of your credit card company's fee, adding another $2 to $5 to the transaction.
  • Using a debit card, visiting your bank's branch, or getting cash back at a store checkout are cheaper alternatives if you need cash.

How the fees stack up on a single withdrawal

A $200 cash advance illustrates the real cost. Your credit card company charges a cash advance fee — let's say 4%, which is $8. The ATM operator may charge an additional $2 to $3.50 for using their machine. You have now paid $10 to $11.50 just to get the cash in your hand, before any interest charges.

Then interest begins accruing. If your cash advance APR is 24% (higher than a typical purchase APR of 18%), you owe roughly $4 in interest for every month the $200 sits on your card. If you pay it back in full within a week, you still owe the upfront fees plus about $0.50 in interest. The longer the cash sits, the worse the math becomes. After 30 days, you have paid $8 to $11.50 in fees plus roughly $4 in interest — a total of $12.50 to $15.50 on a $200 withdrawal.

Your credit card company sets a separate cash advance limit

Most credit card issuers assign you a cash advance limit that is different from your regular credit limit. You might have a $5,000 credit limit but only a $500 cash advance limit. This limit is set by the card issuer based on your credit profile and account history, and you cannot change it yourself without calling the issuer.

If you try to withdraw more than your cash advance limit, the ATM will decline the transaction. You can call your credit card company to request an increase, but there is no may provide they will grant one. Some card issuers allow you to view your cash advance limit in your online account or mobile app, so check there before heading to an ATM.

ATM operators charge their own fee on top of your card issuer's fee

When you use an ATM that does not belong to your credit card issuer's network, the ATM operator charges a surcharge — typically $2 to $5 — in addition to any fee your credit card company charges. This is the same surcharge you see when using a debit card at an out-of-network ATM. Some ATMs display the surcharge amount on the screen before you confirm the withdrawal, giving you a chance to cancel.

If you use an ATM operated by your credit card issuer — for example, a Visa card at a bank that issues Visa cards — you may avoid the ATM operator's surcharge, though your card issuer's cash advance fee still applies. Check your card issuer's website or app to find ATMs in their network before you withdraw.

Why your credit card company treats cash advances differently

Credit card issuers charge higher rates and fees for cash advances because the transaction is riskier for them. When you make a purchase, the merchant guarantees the transaction and handles disputes. When you withdraw cash, there is no merchant, no receipt to dispute, and no way for the issuer to recover the money if you do not pay. The higher rate and when ready interest reflect that risk.

Additionally, cash advances do not earn rewards points or cash back on most credit cards. If your card offers 2% cash back on purchases, that benefit does not explore to cash withdrawals. This is another reason card issuers discourage cash advances — they want you using the card for purchases, where they earn interchange fees from merchants.

Cheaper ways to get cash when you need it

If you need cash, a credit card ATM withdrawal should be your last option. Getting cash back at a store checkout when you make a purchase costs nothing — no fee, no interest. Many grocery stores, pharmacies, and retailers offer this service with any debit card or credit card purchase. You straightforward tell the cashier how much cash you want back, and they add it to your bill.

If you have a debit card linked to a checking account, using your bank's own ATMs is free. If you must use an out-of-network ATM with a debit card, you pay only the ATM operator's surcharge ($2 to $5), not a cash advance fee or interest. Visiting your bank's branch during business hours and withdrawing cash from a teller is also free and has no fees or interest charges.

What happens if you cannot pay back the cash advance

If you do not pay back the cash advance in full by your statement due date, the unpaid balance rolls into your regular credit card balance and continues accruing interest at the cash advance rate. This interest is compounded daily, meaning you owe interest on the interest. The longer the balance sits, the more you owe.

A cash advance also counts toward your credit utilization ratio — the percentage of your available credit you are using. A high utilization ratio can lower your credit score, even if you are making on-time payments. Paying off the cash advance quickly helps minimize both the interest cost and the impact on your credit score.

Frequently Asked Questions

Can I use any credit card at any ATM?

Most credit cards work at ATMs displaying their network logo (Visa, Mastercard, American Express, or Discover), but some cards restrict cash advances or require you to use specific ATMs. Check your card's terms or call your issuer to confirm your card allows cash advances. Even if it does, you may face a surcharge from the ATM operator.

What is the difference between a cash advance and a regular purchase?

A cash advance charges an upfront fee (3% to 5%), a higher interest rate, and interest that starts when ready with no grace period. A regular purchase has no upfront fee, a lower interest rate, and usually a 21-day grace period before interest starts. Cash advances also do not earn rewards points on most cards.

Can I increase my cash advance limit?

You can call your credit card issuer and request an increase, but approval is not may provide. The issuer bases the limit on your credit profile and account history. Some issuers allow you to view and manage your cash advance limit in your online account or app, though the ability to change it varies by card.

Will using a credit card at an ATM hurt my credit score?

A single cash advance will not damage your score, but it increases your credit utilization ratio, which can lower your score slightly. If you pay it back quickly, the impact is minimal. Repeated cash advances or letting the balance sit unpaid can hurt your score more significantly over time.

Is there any way to avoid the cash advance fee?

The cash advance fee is unavoidable when you withdraw cash using a credit card. Your only options to avoid it are to use a debit card, get cash back at a store checkout, or visit your bank branch. These alternatives have no fees or interest charges.