Yes, you can get cash back on a credit card, but it costs money and works differently than a debit card
When you use a credit card to get cash back at a store checkout or ATM, you are borrowing money from the card issuer, not withdrawing your own funds. The card company charges you a cash advance fee — usually 3 to 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. You also start paying interest immediately, often at a higher rate than your regular purchase APR, and that interest accrues daily until you pay it back. There is no grace period for cash advances the way there is for purchases.
Most people use cash back at the register instead, which is free and simpler: you buy something, ask for cash back, and the amount is added to your purchase total. That money counts as a purchase, not a cash advance, so you get the same interest terms and grace period as any other buy.
Key Takeaways
- Cash back at a store register is free and treated like a regular purchase, but ATM cash advances charge a fee of 3 to 5 percent plus a higher interest rate.
- Interest on a cash advance starts the day you withdraw it, with no grace period, so the cost adds up fast.
- Your credit card agreement sets a cash advance limit, which may be lower than your overall credit limit.
- If you need cash regularly, a debit card or ATM withdrawal from your bank account costs nothing and avoids debt.
How cash back at checkout works
When you ask for cash back at a grocery store, pharmacy, or other retailer that offers it, the cashier adds the amount to your total bill. You pay for both the purchase and the cash in one transaction, and the entire amount appears on your credit card statement as a single charge. This is the cheapest way to get cash with a credit card because there is no fee and no higher interest rate.
The amount you can withdraw is limited by what the store allows — typically $20 to $100 per transaction — so this method works best if you need a small amount. Not all stores offer it, and some require a minimum purchase. You also cannot use it if you are paying online or over the phone.
How ATM cash advances work and what they cost
When you insert your credit card into an ATM, you are taking out a loan, not accessing money you have already paid in. The ATM charges a fee (usually $2 to $3), and your credit card company charges a separate cash advance fee on top of that. That card fee is typically 3 to 5 percent of the amount withdrawn — so pulling out $200 costs you $6 to $10 just in fees, before interest.
Interest on the cash advance begins accruing the same day you withdraw it. Unlike a purchase, which may have a 21 to 25 day grace period before interest kicks in, a cash advance has no grace period. The interest rate is also usually higher than your regular APR — often 2 to 3 percentage points above what you pay on purchases. If your purchase APR is 18 percent, your cash advance APR might be 21 or 22 percent.
Because interest starts immediately and compounds daily, the cost of a cash advance grows quickly. A $200 withdrawal at 22 percent APR costs you about $3.60 in interest per month if you do not pay it back.
Cash advance limits and how they differ from your credit limit
Your credit card issuer sets a separate cash advance limit, which is often much lower than your overall credit limit. If your credit limit is $5,000, your cash advance limit might be only $500 or $1,000. You can find this limit in your card agreement or by calling the customer service number on the back of your card.
The cash advance limit exists because lenders see cash withdrawals as riskier than purchases — you have already spent the money and cannot return it. If you try to withdraw more than your limit, the ATM will decline the transaction.
When cash advances make sense and when they do not
A cash advance is rarely the right choice. If you need cash for an emergency and have no other way to get it, a cash advance is faster than a personal loan, but it costs more. A better option is to use cash back at a store, which is free, or to withdraw money from your own bank account using your debit card or ATM card.
The only scenario where a cash advance might be worth considering is if you are in a true emergency, have no access to your bank account, and cannot use cash back at a store. Even then, you should pay it back as quickly as possible to minimize interest.
If you find yourself needing cash advances regularly, that is a sign you are spending more than you earn. A budget or a conversation with a credit counselor can help you break that pattern before the debt grows.
How to avoid cash advances and manage your credit card debt
The simplest way to avoid cash advances is to keep a debit card or ATM card linked to your bank account. Withdrawing from your own money costs nothing and does not create debt. If you use a credit card for purchases, pay the full balance each month so you never pay interest.
If you carry a balance, focus on paying down the principal as fast as you can. Every dollar you pay toward a cash advance balance stops the interest clock on that money. If you have multiple debts, pay the cash advance first because it has the highest interest rate.
Some credit card issuers allow you to lower your cash advance limit or request that it be set to zero. If you know you will not use cash advances, ask your issuer to do this. It reduces the temptation and protects you if your card is lost or stolen.
Frequently Asked Questions
Is cash back at the store the same as a cash advance?
No. Cash back at checkout is a purchase and costs nothing. A cash advance is a withdrawal from an ATM or bank teller and charges a fee plus a higher interest rate. Always use cash back at the register if you need a small amount of cash.
Can I get a cash advance with a credit card at my bank?
Yes. You can visit a bank teller and ask for a cash advance on your credit card. The fee and interest rate are the same as an ATM withdrawal, so there is no advantage to doing it this way instead of using an ATM.
What happens if I do not pay back a cash advance?
The balance stays on your credit card and interest keeps accruing daily. If you do not pay anything, the debt grows and can eventually go to collections. It also damages your credit score because the balance counts toward your credit utilization ratio.
Can I transfer a cash advance balance to another credit card?
Some balance transfer offers exclude cash advances, so you would need to check your new card's terms. Even if a transfer is allowed, you may pay a balance transfer fee. Paying off the cash advance directly is usually cheaper.
Does getting cash back at the store affect my credit score?
No. Cash back at checkout is treated as a purchase, so it does not trigger the higher interest rate or fees of a cash advance. It counts toward your credit utilization, but only in the same way any purchase does.