Understanding ATM Fees & How to Avoid Them

When you are charged an ATM fee, you’re paying for the privilege of using the machine. The exact fee you’ll pay depends on the operator, the network, or the bank. However, research shows that the average ATM fee is around $4.77.¹

Federal law requires ATM operators to inform customers about fees before they’re charged, giving them the chance to decline the fee and cancel the transaction.² If you try to withdraw cash from an out-of-network ATM, a notice should appear on the screen detailing the fee amount. You’ll need to accept it in order to proceed.

Luckily, there are several ways to avoid paying ATM fees. Knowing this information can help you keep more money in your pocket by avoiding bank fees, like ATM or overdraft fees.

Read on for five tips on 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 don’t charge ATM fees?

The answer is simple: look for an ATM owned by your bank or one that’s part of its partner network. These fee-free ATMs let you withdraw your hard-earned cash and check your balance without paying for the privilege.

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. Using your bank’s ATM locator helps you avoid fees even if you’re in an unfamiliar area.
• Online maps: If your bank doesn’t have an ATM locator, you can use online maps like Google Maps or Apple Maps to search for your bank’s nearest ATM. Search phrases like “no-fee ATM near me” or include your bank’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 bank’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 will monitor your transactions, detect ATM fees, and reimburse you up to the specified limit. You should see the reimbursement on your next billing statement.

Check to see if your bank offers this feature, or consider choosing a bank that does if you think you’ll need to use out-of-network ATMs often. For regular use, consider opening an account with an online-only bank.

Online-only banks, which have no physical branches, often partner with large ATM networks (such as Allpoint or MoneyPass) to provide fee-free access. For example, Chime offers access to over 47,000 fee-free ATMs at stores like 7-Eleven^®, CVS^®, Walgreens^®, Target^®, and Circle K.³

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 may allow you to withdraw up to $200.⁴ The store charges your debit card for both the item and cash back without extra fees.

Using your debit card to get cash back when you make a purchase at a participating store is an excellent way to avoid ATM fees. However, it’s best to use this method only if you are already planning to make a purchase, rather than buying something you don’t need just to get cash back.

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 while avoiding ATM fees (and eliminating the trip to the ATM altogether).

Also, consider using digital payments instead of cash. Platforms like PayPal, Venmo, and Cash App allow you to send money directly to friends and family, eliminating 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 instead whenever possible. Many stores now accept digital wallet payments, like Apple Pay, Samsung Pay, and Google Pay, so you don’t even need to have your debit or credit card with you.

When you pay with a bank card, you’ll have a complete transaction record, which you can use to help improve your spending habits and make a budget. Some credit and debit cards offer rewards or loyalty points that you can exchange for gift cards or a statement credit.

Going cashless not only helps you avoid ATM fees, but it can also provide you with added benefits that can improve your financial health.

Withdrawing cash weekly from an out-of-network ATM could cost you almost $250 annually.¹ Improving your understanding of ATM fees and how to avoid them can help you keep more money in your pocket rather than in the bank’s hands.

ATM fees aren’t the only fees to keep on your radar. Learn more about unexpected bank fees and how to avoid them and protect your hard-earned money.