Things to know before swiping your credit card at an ATM

Before using your credit card at an ATM, consider fees, interest rates, and other factors to avoid unnecessary financial burdens.
Things to know before swiping your credit card at an ATM
4 min read
26 July 2023

A handful of credit cards like Bajaj Finserv co-branded cards offer you a cash withdrawal facility without charging a Credit Card Cash Advance Fee or an interest rate for up to 50 days. While the facility to swipe credit card and get cash is quite a relief for immediate financial needs, you must consider a few essential points.

Credit limit

Your credit limit is the maximum amount that you can withdraw through your credit card using a credit card swipe machine. Before using it at an ATM, check your available credit limit and ensure that the amount you intend to withdraw does not exceed it. Exceeding your credit limit can lead to additional charges, such as credit card swipe charges, as well as hurt your credit score. Learn about how to check, calculate, and improve your credit score here.

Security concerns

ATMs can be targeted by thieves, and you need to take measures to protect yourself from fraud and theft.

  • Use ATMs in well-lit and monitored areas to avoid theft
  • Be aware of skimming devices, which are small electronic devices that are installed on ATM machines to steal credit/debit card information and PIN numbers
  • Cover the keypad while entering your PIN to avoid shoulder surfing
  • In case of any suspicious activity, contact the bank immediately

Fees and charges for credit card cash withdrawal

Using credit cards at ATMs can come with a range of fees and charges. Before withdrawing cash, you need to consider the transaction fees imposed by your credit card provider. Some banks require a one-time fee while others charge a percentage of the transaction amount as a fee. It is important to understand and compare these fees across different banks and credit card providers.

By keeping the above-mentioned considerations in mind, you can use your credit card at an ATM more wisely and reduce any unnecessary financial burdens.


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Frequently asked questions

Can I withdraw money from my credit card at an ATM?

Yes, you can use a credit card to withdraw cash at an ATM if your card offers that facility.

3 important things to know before swiping a credit card at an ATM?
  1. Withdrawal may attract a processing fee
  2. You may incur an interest charge after 50 days of withdrawal with our SuperCards
  3. You can withdraw a maximum amount up to your available credit limit
Is it safe to swipe a credit card for cash?

Yes, it is safe to swipe a credit card at an ATM if you take necessary security precautions such as using well-lit ATMs, hiding PIN, and monitoring transactions.

What are the disadvantages of card swipe machines?

The disadvantages of using a card swipe machine include higher fees, security risks like skimming or hacking, and the likelihood of fraudulent transactions.

Is tapping your card safer than swiping?

Yes, tapping your card is safer than swiping because with tap-and-go payments, transaction information is protected under encryption, and the card never leaves your hand. Tapping also reduces contact and is more convenient.

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