ATM fees are a common frustration for bank customers. Between surcharges from ATM operators and fees from your own bank, a simple cash withdrawal can cost $3–$6 or more. But why do ATMs charge fees in the first place? This guide explains how ATM fees work, who charges them, and how you can avoid paying extra.
1. Types of ATM Fees
ATM fees come in two main forms: surcharges from the ATM owner and out-of-network fees from your bank. Here’s how they differ:
| Fee Type | Who Charges It | When It Applies | Average Cost |
|---|---|---|---|
| Surcharge | ATM Operator (e.g., store, third-party) | Using ATMs outside your bank’s network | $2.50–$3.50 |
| Out-of-Network Fee | Your Bank | Withdrawing cash from non-network ATMs | $2.50–$5.00 |
| Foreign Transaction Fee | Your Bank | International ATM withdrawals | 1–3% of transaction |
To see where you can withdraw cash without paying extra, visit our Best No-Fee ATMs Nationwide Guide.
2. Why ATM Surcharges Exist
Surcharges cover the costs of operating and maintaining the ATM. Owners pay for hardware, cash handling, security, and network connections. By charging fees to out-of-network users, they recover some of these expenses while earning extra revenue.
For tips on finding surcharge-free machines, see our Surcharge-Free ATMs When Traveling Guide.
3. Why Banks Add Out-of-Network Fees
When you use another bank’s ATM, your bank pays a network fee to the ATM owner. Out-of-network fees pass these costs back to you and encourage customers to use in-network ATMs where the bank doesn’t incur extra expenses.
Some banks reimburse these fees for premium accounts—check your account terms or consider upgrading if you withdraw cash often.
4. Average ATM Fees in the U.S.
According to recent studies, the average total cost for using an out-of-network ATM in the U.S. is about $4.73 per transaction. That includes both the ATM operator’s surcharge and your bank’s fee.
Our Avoid ATM Fees Complete Guide offers strategies to eliminate or reduce these costs.
5. How to Avoid ATM Fees
- Use your bank’s in-network ATMs whenever possible.
- Look for nationwide surcharge-free networks like Allpoint and MoneyPass.
- Withdraw larger amounts less frequently to reduce per-transaction fees.
- Choose accounts that reimburse ATM fees automatically.
Our Allpoint vs. MoneyPass Comparison Guide explains the largest surcharge-free networks in detail.
6. International ATM Fees
When withdrawing cash abroad, you may face both a local ATM surcharge and a foreign transaction fee from your bank. Some banks partner with overseas networks to waive these fees, so check for partnerships before traveling.
ATM Fee FAQs
Why do ATMs charge both a surcharge and a bank fee?
The ATM operator charges a surcharge for using their machine, while your bank adds a fee for going outside its network. Both fees apply when you use a third-party ATM.
Can I get ATM fees refunded?
Some banks reimburse ATM fees for premium accounts or if you maintain a certain balance. Check your account terms or call customer service.
Do credit unions charge fewer ATM fees?
Many credit unions belong to shared ATM networks, offering free withdrawals at thousands of locations nationwide.
Related Guides
- Best No-Fee ATMs Nationwide Guide
- Avoid ATM Fees Complete Guide
- Allpoint vs. MoneyPass Comparison Guide
- Surcharge-Free ATMs When Traveling Guide
Conclusion
ATM fees add up quickly, but understanding how they work helps you avoid unnecessary charges. Use in-network ATMs, choose accounts with fee reimbursements, and plan ahead when traveling to keep more money in your pocket.