ATM fees: Easy ways to avoid them with a little planning

Open full sized image

Convenience sometimes comes at a high cost.

© andresr––E+/Getty Images

If you’ve ever used an ATM at a convenience store or supermarket, you may have paid a fee—and perhaps not a small one, either. Expected or not, those fees can add up if you use an ATM regularly.

But it’s easy to avoid ATM fees if you understand how you incur them, the different types of fees you might be charged, and how best to use your bank’s ATM network.

ATMs offer a simple way to access your cash. You can also use them to deposit checks, transfer funds, and check your bank balance worldwide. But with convenience sometimes comes cost: the dreaded ATM fee.

There are three ATM fees that you may incur when using an ATM:

Out-of-network fees. If you’re using an ATM owned by your bank, in most cases you won’t have to pay a fee to use it. But if you’re using another bank’s ATM or one that’s not in your bank’s network, your bank may impose an out-of-network fee.

ATM operator fees. If you use an ATM that is not part of your bank’s ATM network, the ATM owner may charge you an operator fee that’s separate from any out-of-network fees charged by your bank.

International transaction fees. If you’re using an ATM in another country, you may be charged a foreign transaction fee. This charge can be a combination of a flat ATM operator fee plus a percentage of the transaction to convert your withdrawal to a foreign currency.

ATMs were initially introduced as a cheaper way for banks to conduct business, allowing them to avoid the high cost of opening and operating multiple full-service branches. But in 1996, two of the largest ATM network operators—Cirrus and Plus—removed a ban on ATM surcharges, turning ATMs from a cost-cutting measure into a profit center for many banks.

ATM fees are not typically charged to in-network cardholders. But fees are assessed for out-of-network users—with consumers footing the bill on both ends of the transaction in some cases. There are operator fees charged by the ATM owner, as well as out-of-network fees assessed by the cardholder’s bank.

ATM fees reached an average of $4.73 per transaction in 2023, according to Bankrate data. That sum is more than double the amount first reported in 1998.

Your bank or financial institution may offer branded ATMs that you can use free of charge. Some banks and credit unions also partner with large ATM networks (such as MoneyPass) to offer wider access to fee-free ATMs worldwide. The credit union–specific Co-op Solutions network offers access to over 30,000 fee-free ATMs located in convenience and grocery stores throughout the country.

But when you choose to use an ATM that isn’t part of your bank’s ATM network, you may incur an out-of-network fee. These charges can range from $2.50 to more than $5 a transaction. And you may get dinged twice: Both your bank and the ATM operator may charge you a fee for the same transaction.

With ATM fees on the rise, there are several ways you can avoid paying extra fees to access your money:

You can opt out of paying ATM fees by using in-network ATMs or simply signing up for a bank account that forgives ATM fees. And if you plan on traveling internationally, look for an account that lets you use any ATM globally without extra fees.

ATM fees may continue to rise even as more and more banking is happening online and the number of ATMs has fallen. But if you avoid using cash in your daily life and instead use a mobile app to manage your bank account, make payments, and transfer funds, paying to use an ATM may simply become one of life’s quaint footnotes, like using a pay phone.

Specific companies and funds are mentioned in this article for educational purposes only and not as an endorsement.