Understanding ATM Fees & How to Avoid Them

Key takeaways:

• ATM fees average around $4.86 per transaction when you use an out-of-network machine, according to Bankrate data.¹

• Several online banks² and financial technology companies offer fee-free ATM access through large partner networks.

• You can avoid ATM fees by using in-network ATMs, getting cash back at retailers, or choosing a financial institution that reimburses out-of-network fees.

• Going cashless with debit cards or digital wallets can reduce your need for ATM visits altogether.

ATM fees can quietly drain your budget – especially if you regularly use out-of-network machines. We'll walk you through what ATM fees are, how much they cost, and simple strategies to help you avoid them.

Which financial institutions offer fee-free ATM access?

Several online banks² and financial technology companies now provide fee-free ATM access through large partner networks, making it easier than ever to withdraw cash without extra charges.

Chime® members, for example, can access 47,000+ fee-free ATMs³ at locations like 7-Eleven, CVS, Walgreens, and Circle K – more than the top 3 national banks combined.⁴ Chime does not charge out-of-network ATM fees on its end, though the ATM owner or operator may still charge a surcharge.

When evaluating which option is right for you, consider these factors:

• Network size: How many fee-free ATMs does the institution offer?

• Fee reimbursement: Does the institution reimburse out-of-network ATM fees?

• Other costs: Are there monthly fees or minimum balance requirements that offset ATM savings?

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.

Regulation E requires⁵ ATM operators to disclose any fees before you complete your transaction. The fee notice must appear on the screen or on paper before you're committed to paying.

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 $3.22.¹

• Out-of-network fee: Your financial institution may charge you for not using an approved ATM. This fee averages $1.64.¹

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 could pay over $250 annually in fees alone.

What types of ATM fees are there?

Not all ATM fees work the same way. Here are the most common types you may encounter:

• ATM surcharge fee: The fee the ATM owner charges you for using their machine, displayed on screen before you complete your transaction.

• Out-of-network fee: A fee your own financial institution charges when you use an ATM outside its approved network.

• Foreign transaction fee: An additional charge that may apply when you use an ATM in another country, typically a percentage of the withdrawal amount.

• Balance inquiry fee: Some ATM operators charge a fee simply for checking your account balance at their machine.

Ways to avoid paying ATM fees

Here are four practical strategies to help you avoid ATM fees and keep more of your money.

1. Use fee-free ATMs

The easiest way to avoid ATM fees is to use a machine owned by your financial institution or one that's part of its partner network. These in-network ATMs let you withdraw cash and check your balance without charges.

Here's how to find fee-free ATMs near you:

• ATM locator: Many online banking platforms have an in-app ATM locator that shows the closest in-network ATMs based on your location.

• Online maps: Search Google Maps or Apple Maps for "no-fee ATM near me" or include your financial institution's name to find fee-free options.

2. Choose a financial institution that reimburses out-of-network ATM fees

Some financial institutions reimburse ATM fees from non-partner networks up to a certain monthly limit. You should see the reimbursement on your next billing statement.

Some online banks and financial technology companies, which have no physical branches, often partner with large ATM networks like Allpoint or FCTI to provide fee-free access. Chime, for example, offers access to 47,000+ fee-free ATMs³ at stores like 7-Eleven, CVS, Walgreens, and Circle K.

3. Get cash back at retailers

Instead of visiting an ATM, purchase something with your debit card at a grocery store or pharmacy and ask for cash back. Most stores allow you to withdraw between $5 and $50⁶this way, with no extra fees.

Just make sure you're buying something you actually need rather than making an unnecessary purchase just to get cash.

4. Skip ATMs and go cashless

You can reduce your need for ATMs by paying with debit or credit cards whenever possible. Many stores also accept digital wallet payments like Apple Pay, Samsung Pay, and Google Pay.⁷

Paying with a card gives you a transaction record that can help you track spending and build a budget. Going cashless can also help you earn rewards or loyalty points on everyday purchases.

Keep more of your money by avoiding ATM fees

Withdrawing cash weekly from an out-of-network ATM could cost you almost $250 annually. By finding fee-free ATMs, getting cash back at stores, or choosing a financial institution with a large ATM network, you can make real financial progress.

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.