April 11, 2025 · 14 mins read
Santhosh Kumar
The current fast-moving society demands quick access to cash. Regular debit cards serve as the primary option for obtaining money transfers, yet occasional situations call for making credit card ATM withdrawals. People who understand the correct procedure for using their credit card as cash will prevent themselves from paying fees and interest rates.
You can access cash instantly at an ATM using your credit card through the same withdrawal method as a debit card. Cashing out with a credit card counts as a cash advance and leads to supplemental fees, including withdrawal charges and high-interest payments. The credit card cash-out method becomes appealing to those who need fast money, though their bank balance remains insufficient.
A credit card cash-out requires a thorough understanding of associated fees while also reviewing your payment methods and other ways to better manage your finances. This guidance will demonstrate cash withdrawal from credit cards while breaking down fees and risks and offering cost-saving recommendations. Research-based card use strategies enable you to avoid financial mistakes while using your credit card appropriately.
People can easily obtain cash through credit card ATMs for convenience yet encounter specific dangers and financial expenses. Using a credit card for cash withdrawals results in a cash advance classification that receives different handling from banks and financial institutions. The user needs to understand this option's functionality and transaction variations before implementing it rather than using standard credit card operations.
A credit card cash advance is a brief loan since it gives customers access to their available credit funds for cash withdrawals. Using your credit card to get cash directly from the issuer constitutes a cash advance borrowing. Credit card cash advance services are provided by ATMs, bank branches, and convenience checks supplied by credit card companies.
The cash advance service charges high prices and provides instant interest payments. It provides no payment postponement benefits. Cardholders who withdraw cash with a cash advance must begin paying interest immediately after making the transaction since this benefit is unavailable for standard purchases.
The procedure of withdrawing cash from an ATM with a credit card includes six sequential steps.
1: You need to place your credit card in an automatic teller machine which supports credit card withdrawals.
2: Type your personal identification number unless your credit card issuer demands you to establish the PIN beforehand.
3: Choose the menu option labelled either "Cash Advance" or "Credit Card Withdrawal".
4: Type in the withdrawal amount while considering the ATM withdrawal limitations.
5: Check the confirmation screen and then obtain your withdrawable funds.
At the end of the transaction, you will receive a receipt containing the withdrawn amount and all associated fees. A withdrawal from an ATM reduces the amount available to you within your credit limit instead of your bank account funds.
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A credit card purchase entails using your card to pay for goods or services, so you gain incentives, an interest-free grace period, and cashback reward benefits. The main distinction between credit card purchases and cash advances is that credit card issuers provide cash advances directly to borrowers, while purchases come with delayed interest accrual along with rewards.
1: Mastering credit card rules means your purchase will have a grace period as interest charges begin right after cash advance withdrawal.
2: The cost of receiving cash advances through credit cards typically exceeds 3-5% of the total withdrawn funds.
3: The available credit for cash advances usually falls below the purchasing power available on the credit card.
1: People who plan to withdraw funds using their credit card through an ATM should verify if their card supports such transactions. The ability to get cash from cards differs among credit cards because limits exist on withdrawal amounts. The procedure to verify your cash advance eligibility consists of these steps.
2: Look at your credit card terms through your agreement or bank website to know about cash advance policies, which include fee costs and interest rates.
3: Your capacity to complete cash advances through your credit card has lower restrictions than regular credit utilization. Your financial institution lets you examine your cash advance availability by using mobile banking, online services, or phone customer support channels.
4: For ATM transaction withdrawals, you must activate your PIN code through your credit card account. People without set PINs should contact their bank to establish a PIN.
5: Before acquiring a cash advance, understand that you will face high fees, which typically amount to 3-5% of the withdrawn amount, in addition to instant interest charges. Therefore, it is crucial to be knowledgeable about all associated costs.
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Locating an ATM that permits credit card advances is crucial because not every machine provides this service.
1: Our bank’s ATMs provide a solution to minimize further transaction costs for those with bank-issued credit cards.
2: When searching for a suitable ATM, select one that provides cash withdrawals through your selected credit card network, such as Visa, Mastercard, American Express, and others. Each ATM shows the logo of its network on its machine displays.
3: Your ability to withdraw cash from International ATM machines during international travel depends on your card's international withdrawal capabilities before you need the service.
The total expense of a credit card ATM withdrawal becomes lower if you select a machine with reduced fees.
Find out whether your credit card qualifies for withdrawal after selecting an appropriate ATM by following these security steps for cashing out.
Insert the credit card into the ATM machine and wait patiently for the device to read the card information.
You need to type the PIN which belongs to your credit card. A PIN assignment becomes essential for security even though certain banks provide PIN-less transaction capabilities.
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All ATMs allow users to access funds from various bank accounts. The available menu options show "Cash Advance" and "Credit Card Withdrawal", which you should select as alternatives to "Checking" or "Savings."
Select the bank card to enter the withdrawal amount you need. When you need big amounts, such as INR 2,30,000, you should be aware that ATMs impose withdrawal restrictions per transaction, so you might need to perform several transactions.
Inspect all transaction information, paying attention to displayed fees, until you complete the process. After verification, the ATM machine will present the requested funds.
After a successful cash withdrawal, you must collect your receipt before taking your credit card out of the machine. The ATM receipt contains information about your withdrawal amount, fees, and current cash advance limit.
Finishing a credit card ATM withdrawal requires following this process while considering all associated expenses.
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You can obtain fast money through a credit card ATM withdrawal, yet you will face substantial expenses. Checking out the costs related to cash advances and interest payments will support your choice regarding your financial health. Credit card cash withdrawal requires three fundamental fees, as described below.
When customers get cash from their credit card, banks impose a cash advance fee on their account. This fee is usually:
1: The withdrawal process incurs a set fee for every transaction from several banks that amounts to around INR 800 per withdrawal.
2: Most issuers levy 3–5% fees related to the cash amount withdrawn. Your credit card issuer prices cash advance transactions between INR 2,250 and INR 3,750 when you make a INR 75,000 withdrawal.
When you withdraw cash from your credit card, the fee is automatically deducted from your existing credit balance, raising the total cost.
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You will encounter two fees from withdrawing cash: the cash advance fee along with potential ATM withdrawal costs, particularly at:
1: A non-bank ATM costs around INR 150 to INR 400 per withdrawal fee.
2: When you withdraw money from international ATMs using your credit card, you will encounter foreign transaction fees of around 2-3%, together with extra ATM service charges.
Cash advances initiate interest accrual from the time you withdraw funds and do not have an equivalent grace period comparable to standard card purchases. The cost of cash advances through credit cards exceeds standard transaction fees because rates typically reach 20 to 30% Annual Percentage Rates (APR).
1: Individual banks apply known currency conversion fees, which can reach up to 3% when users withdraw money from outside their home country.
2: You will incur over-limit fees when your cash advance withdrawal exceeds your established withdrawal limit.
Awareness of these fees enables you to reduce your expenses when taking out cash using a credit card at an ATM.
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1: This feature allows you to access fast cash during emergencies because other alternatives are unavailable.
2: The need for bank approval does not exist when obtaining cash advances because they bypass this requirement.
3: Cardholders can obtain cash at worldwide ATMs, including locations primarily supporting different payment methods.
4: Premium credit cards enable users to obtain more significant cash from their accounts.
1: Obtaining cash advances through a credit card involves paying 3-5% of the withdrawn amount because of the associated fees.
2: Since this product offers no grace period, credit cardholders must pay a substantial 20-30% APR interest on their withdrawals directly from the day they take the cash.
3: Taking out cash from non-bank ATMs and conducting transactions abroad results in supplementary fees for additional ATM processing and foreign transacting activities.
4: Frequent cash advances create signs of financial troubles which leads to decreased credit score performance.
5: Your credit availability decreases when you utilize cash advances, as the amount withdrawn reduces your available spending limit.
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A credit card ATM withdrawal costs significantly, but implementing particular methods allows users to reduce their expenses. Selecting the perfect card, followed by fast repayment combined with minimal ATM usage, will decrease charges and interest fees.
A person who selects a credit card with suitable cash advance fees will pay less. Certain credit cards allow customers to enjoy reduced cash advance costs and lowered interest expenses. Having a card without cash advance fees or reduced ATM withdrawal fees for regular cash withdrawals is beneficial. Reading the terms and conditions before card-based withdrawal operations are needed to prevent surprise financial expenses.
The immediate accumulation of interest is a significant disadvantage of using credit card cash withdrawals. Cutting down expenses requires immediate repayment of the withdrawn funds. A small payment you make before your statement date will reduce the total interest owed. The establishment of automatic payment systems, together with rapid fund transfers, helps to reduce the accumulation of high-interest costs.
Multiple ATM withdrawals with credit cards will result in elevated fees, growing debt, and harm to your creditworthiness. Emergency cash withdrawals using this option must remain limited because you should research personal loans, digital payment methods, and borrowing money from family and friends as other available solutions. Individuals who regularly withdraw cash should implement better money management strategies, as these practices must stop.
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Withdrawing a large amount of money without knowing the fee costs is a key error. When you withdraw INR 1,65,000 from your credit card, you will have to pay between INR 4,950 and INR 8,250 in cash advance fees because fees commonly amount to 3–5% of the withdrawn sum. ATM withdrawal and international transaction costs will result in additional expenses. Check your bank fees first and withdraw only the required amount when taking cash out.
The accumulation of interest begins right after taking a cash advance because their average annual percentage rates typically reach between 20-30%. People typically withdraw cash, yet they fail to understand how rapidly the outstanding debt grows. Failure to pay back the amount within a short period results in substantially growing overall expenses. You must inspect all existing repayment terms and focus on reducing your outstanding balance rapidly because this practice minimizes total interest costs.
People should only use credit card cash withdrawals when necessary since they remain unsuitable for funding daily costs. Many people face financial difficulties because they recurrently use cash advances for food shopping, utility payments, and regular store purchases. This payment approach remains costly because its fees and interest rates exceed those of other payment methods. Personal loans, budgeting, and digital payments are better options for handling expenses than using credit card ATM withdrawals.
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Using a credit card at an ATM for emergency cash remains a convenient solution, though these transactions are extremely expensive because they create immediate interest costs and burden you with high fees and assorted security risks. A cash advance is a costly borrowing choice because it charges a cash advance fee between 3-5% of the withdrawn amount and an APR between 20-30%. Using credit card ATM withdrawals too often might lower your credit score and enhance your financial obligations.
Avoid daily spending on credit card cash withdrawals while you need to check your cash advance limit and repay the amount immediately to minimize unnecessary costs. Personal loans, digital payments, and borrowing money from friends or family members should be considered instead of ATM withdrawals.
Understanding the financial costs and safety risks of cashing out credit cards will help you make sound financial decisions and reduce your debt burden. Use this method only when you have no other available options.
Some ATMs support credit card withdrawals, while others do not. You can access no-cost transactions when you withdraw cash from ATMs operated by your bank or ATMs that acknowledge Visa or Mastercard credit card networks.
Most banks impose a cash advance fee of 3-5% of the withdrawn sum and ATM withdrawal fees. A cardholder must expect to start paying interest immediately, at 20% and 30%.
The best approach to cash withdrawals is quick repayment because credit cards lack any grace period, which means interest instantly starts accumulating. The amount of interest you must pay increases each day you postpone repayment.
When you withdraw cash from your credit card, it often signals negative wealth indicators that may reduce your credit standing unless you handle it responsibly.
The cash advance limit set by banks remains below each customer's established credit limit. Online banking applications and credit card statements provide access to your withdrawal limit.
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