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Key takeaways
- ATM fees average around $4.86 per transaction when you use an out-of-network machine, according to Bankrate data.
- You can avoid ATM fees by using ATMs within your bank’s network or getting cash back at retailers.
- Some banks reimburse out-of-network ATM fees or offer access to large fee-free ATM networks.
- Going cashless with debit cards or digital wallets can reduce your need for visits to the ATM.
ATMs make grabbing cash quick and convenient – but withdrawal fees can add up fast. We’ll walk you through what ATM fees are, how much they cost, and simple strategies to avoid them so you can keep more money in your pocket.
What are ATM fees?
ATM fees are charges you pay for using an ATM to withdraw cash, check your balance, or make other transactions. When you use an out-of-network ATM, you’ll typically face two separate fees – one from the ATM owner and another from your own financial institution. The average total ATM fee for an out-of-network withdrawal is $4.86 per transaction.
Regulation E requires ATM operators to disclose any fees and only permits the fee if the consumer chooses to proceed after receiving the notice. If you try to withdraw cash from an out-of-network ATM, an ATM fee notice must be provided on the screen or on paper before you’re committed to paying the fee.
How much are ATM fees?
When you use an ATM outside of your network, you often get hit with two separate charges:
- ATM owner fee: The company that owns the ATM charges you for using their machine. This fee averages $3.22.
- Out-of-network fee: Your financial institution may charge you for not using an approved ATM. This fee averages $1.64.
Combined, these two charges add up to $4.86 per transaction. If you withdraw cash from an out-of-network ATM once a week, you’ll pay over $250 annually in fees alone.
This double-fee structure is why a simple trip to get cash can take a bigger bite out of your budget than you might expect.
5 ways to avoid paying ATM fees
Luckily, there are several ways to avoid paying ATM fees. Here are five tips for finding fee-free ATMs near you so you can avoid paying ATM fees when you need cash.
1. Use no-fee ATMs
The easiest way to avoid paying ATM fees is to find a machine that doesn’t charge one. But how do you know which ATMs are fee-free?
The answer is simple: look for an ATM owned by your financial institution or one that’s part of its partner network. These fee-free ATMs let you withdraw cash and check your balance without any charges.
However, while in-network ATMs are usually fee-free for any transaction, some banks might limit the number of free transactions you can make each month.
Wondering how to find fee-free ATMs? There are two main options:
- ATM locator: Many online banking platforms have an in-app ATM locator that detects your current location and shows the closest in-network ATMs.
- Online maps: Use Google Maps or Apple Maps to search for your financial institution’s nearest ATM. Search phrases like “no-fee ATM near me” or include your financial institution’s name to find fee-free options.
2. Choose a bank that reimburses out-of-network ATM fees
Occasionally, you might need to use an ATM outside of your financial institution’s network, resulting in a fee. Some banks reimburse ATM fees from other banks or non-partner networks up to a certain limit.
Banks that offer ATM fee reimbursement may monitor your transactions, detect ATM fees, and reimburse you up to the specified maximum. You should see the reimbursement on your next billing statement.
Check to see if your financial institution offers this feature, or consider choosing one that does if you think you’ll need to use out-of-network ATMs often. Online-only banks, which have no physical branches, often partner with large ATM networks like Allpoint or FCTI to provide fee-free access.
For example, Chime® offers access to over 47,000 fee-free ATMs at stores like 7-Eleven, CVS, Walgreens, and Circle K.1
3. Get cash back at retailers
A clever way to avoid ATM fees is to skip the ATM altogether. If you’re at a grocery store or pharmacy, purchase something with your debit card and ask for cash back.
Most stores allow you to withdraw between $5 and $50 using this method, though some allow you to take out more. The store charges your debit card for both the item and cash back without extra fees.
Getting cash back when you make a purchase is an excellent way to avoid ATM fees. Just make sure you’re buying something you actually need rather than making an unnecessary purchase just to get cash.
4. Use your debit card for group expenses in exchange for cash
If you’re out for coffee or lunch with friends, consider picking up the tab and having your friends give you cash for their shares. This lets you get the cash you need without visiting an ATM.
You can also use digital payment platforms like PayPal, Venmo, or Cash App to send money directly to friends and family, which can reduce the need for cash.
5. Avoid ATMs and start going cashless
Although you may not be ready to go fully cashless, you can avoid using ATMs by paying with debit or credit cards whenever possible. Many stores accept digital wallet payments like Apple Pay, Samsung Pay, and Google Pay.
When you pay with a bank card, you get a transaction record that can help you improve your spending habits and make a budget. Some credit and debit cards also offer rewards or loyalty points you can exchange for gift cards or statement credits.
Going cashless not only helps you avoid ATM fees, but it can also provide added benefits that improve your financial health.
Say goodbye to costly ATM fees
Withdrawing cash weekly from an out-of-network ATM could cost you almost $250 annually. By using the strategies in this article, you can keep more of your money in your pocket instead of losing it to fees.
ATM fees aren’t the only charges to watch out for. Learn more about unexpected bank fees and how to avoid them to protect your money.
Frequently asked questions about ATM fees
How can I find a fee-free ATM near me?
Use your financial institution’s mobile banking app ATM locator or search online maps like Google Maps to find nearby no-fee ATMs.
Which ATMs are usually fee-free?
ATMs owned by your financial institution or within its partner network, such as Allpoint or MoneyPass, typically don’t charge fees.
Is getting cash back at a store cheaper than using an out-of-network ATM?
Yes, many stores offer cash back without extra fees, though you may be limited to withdrawing between $5 and $50 depending on the retailer.