Yes, you can use a credit card at an ATM, but it is a cash advance, not a debit transaction

Most ATMs will accept a credit card and dispense cash, but the transaction is treated as a cash advance rather than a regular purchase. This matters because cash advances carry different fees and interest rates than everyday credit card spending. The moment you insert your card and withdraw cash, you are borrowing money at terms that are usually worse than your standard card rate.

Not every ATM accepts credit cards — many machines are set up only for debit cards and bank accounts. ATMs owned by your card issuer (the bank that issued your credit card) are more likely to work, but even then, the machine may refuse if your card is not set up for cash advances. Some credit cards, particularly secured cards or cards for people rebuilding credit, do not allow cash advances at all.

Key Takeaways

  • A credit card cash advance at an ATM charges a separate fee (usually 3 to 5 percent of the amount withdrawn) plus a higher interest rate than regular purchases.
  • Interest on a cash advance starts accruing immediately — there is no grace period like there is for regular credit card purchases.
  • Your credit card issuer sets a cash advance limit that may be lower than your overall credit limit, so you might not be able to withdraw as much as you can spend.
  • ATM operators may also charge their own fee on top of your credit card company's fee, so you could pay two separate charges for one withdrawal.

What fees and interest rates apply to credit card cash advances

When you withdraw cash using a credit card, you pay at least two separate charges. Your credit card company charges a cash advance fee, which is usually 3 to 5 percent of the amount you withdraw — some cards charge a flat fee instead (for example, $5 or $10 per transaction). The ATM operator may also charge you an additional fee, typically $2 to $3, on top of what your card issuer charges.

The interest rate on a cash advance is almost always higher than the rate on regular purchases. While a typical credit card purchase might carry an APR (annual percentage rate) of 15 to 25 percent, a cash advance APR can be 25 to 30 percent or higher. More importantly, interest starts accruing immediately — unlike a regular purchase, which may have a grace period of 20 to 30 days before interest kicks in, a cash advance begins charging interest the day you withdraw it.

If you withdraw $200 at a 4 percent cash advance fee plus a $3 ATM fee, you have already paid $11 before you even use the money. If you carry that $200 balance for a month at a 28 percent APR, you will owe roughly $4.67 in interest on top of the fees. The total cost of borrowing $200 for a month can easily exceed $15.

How cash advance limits work and why yours might be lower than your credit limit

Your credit card issuer sets a separate cash advance limit that is independent of your regular credit limit. If your credit limit is $5,000, your cash advance limit might be only $1,000 or $1,500. This limit is set by the card issuer based on your credit profile and payment history, and you cannot change it without calling the issuer and requesting an increase.

The cash advance limit exists because credit card companies view cash advances as riskier than regular purchases. When you buy something with a credit card, the merchant has a record of the transaction and the item you bought. When you withdraw cash, the card company has no way to track what you do with the money, so they limit how much you can take out at once. Some card issuers set the cash advance limit at 20 to 30 percent of your total credit limit; others use a different formula based on your account history.

If you try to withdraw more than your cash advance limit allows, the ATM will decline the transaction. You will not know your exact limit unless you call your card issuer or check your account online — most credit card statements and online portals list this information under "cash advance limit" or "ATM withdrawal limit."

Which ATMs accept credit cards and which ones do not

ATMs owned by your credit card issuer's bank are the most likely to accept your card. For example, if you have a Chase credit card, a Chase ATM will almost certainly accept it. ATMs at other banks or independent ATM operators may accept credit cards, but many do not — they are set up only for debit cards and bank accounts.

Before you travel or plan to use an ATM, check your card's terms or call your issuer to confirm that your specific card is set up for cash advances. Some cards, particularly those designed for people with limited credit history or those rebuilding credit, explicitly do not allow cash advances. Prepaid cards and some secured credit cards fall into this category. If your card does not support cash advances, every ATM will decline your request, regardless of the machine type.

If you find an ATM that accepts your card, the machine will usually display the cash advance fee before you confirm the withdrawal. Read this screen carefully — it will tell you both the ATM operator's fee and your card issuer's fee, so you know the total cost before you proceed.

Why a cash advance is usually more expensive than other ways to get cash

Using a credit card at an ATM is almost always more expensive than using a debit card or withdrawing cash from your bank's teller. A debit card withdrawal typically costs nothing at your own bank's ATM and $2 to $3 at an out-of-network ATM. A credit card cash advance costs at least 3 to 5 percent plus interest from day one, making it a significantly more expensive way to borrow.

If you need cash urgently and do not have a debit card or bank account, a credit card cash advance is an option, but it should be a last resort. Alternatives include asking a friend or family member for a short-term loan, visiting a bank branch to withdraw cash from a line of credit, or using a payday loan (which has its own high costs but may be cheaper than a credit card cash advance if you repay it within a few days). For ongoing cash needs, opening a checking account with a debit card is far less expensive than relying on credit card cash advances.

How to minimize the cost if you do need a cash advance

If you must use a credit card to get cash, take these steps to keep the cost as low as possible. First, withdraw only what you need — every dollar you take out costs you a percentage fee plus interest, so minimizing the amount reduces the total damage. Second, repay the cash advance as quickly as possible, ideally within a few days. Because interest starts immediately and compounds daily, even a week of delay adds up.

Third, prioritize paying off the cash advance before you make regular purchases on the card. Credit card companies apply your payments to the lowest-interest balance first, which means if you have both a cash advance and regular purchases on your card, your payment will go toward the regular purchase (which has a lower interest rate) and leave the cash advance balance to grow. Some card issuers allow you to specify which balance to pay down, so call and ask if yours does.

Finally, check whether your card issuer offers any cash advance fee waivers or reduced rates for certain situations. Some cards waive the cash advance fee for the first few withdrawals in a calendar year, or offer a lower rate if you are a long-standing customer with good payment history. These offers are rare, but it is worth asking before you withdraw.

Frequently Asked Questions

Can I use a credit card at any ATM?

No. Many ATMs accept only debit cards and bank accounts. ATMs owned by your card issuer's bank are most likely to accept your credit card, but even then, your specific card must be set up for cash advances. Some credit cards do not allow cash advances at all, in which case no ATM will accept them.

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

A regular purchase has a grace period (usually 20 to 30 days) before interest starts, and it charges your standard APR. A cash advance charges interest immediately from the day you withdraw it, at a higher APR, plus a separate cash advance fee. The interest on a cash advance can be 5 to 10 percentage points higher than your regular rate.

Will a cash advance hurt my credit score?

A cash advance itself does not directly hurt your score, but it increases your credit utilization (the amount of your available credit you are using), which can lower your score slightly. If you carry the cash advance balance for a long time without paying it down, the ongoing high utilization will continue to affect your score negatively.

Can I get a cash advance if I have reached my credit limit?

No. Your cash advance limit is separate from your overall credit limit, but you cannot exceed your total available credit. If you have used your entire credit limit, you cannot take out a cash advance until you pay down your balance.

How long does a cash advance stay on my credit card statement?

A cash advance appears as a separate line item on your statement and remains there until you pay it off completely. Unlike a regular purchase, which you might pay off in full each month, a cash advance balance can sit on your account indefinitely if you do not pay it down, accruing interest the entire time.