ATM fees frustrate a lot of bank customers because a quick cash withdrawal can suddenly cost several extra dollars. In many cases, you may pay both the ATM owner and your own bank just to access your money.
ATMs charge fees because the machines cost money to operate, maintain, secure, and refill with cash. Banks and ATM operators use these fees to recover those costs and generate revenue when customers use out-of-network machines.
Quick Answer
- ATM owners often charge a surcharge for using their machine
- Your bank may also charge an out-of-network fee
- International ATM withdrawals may include foreign transaction fees
- Fees help cover machine maintenance, security, and cash handling
- You can often avoid fees by using in-network or surcharge-free ATMs
How ATM Fees Work
ATM fees usually come from two different sources:
- The ATM operator may charge a surcharge for using the machine
- Your own bank may charge an out-of-network fee if the ATM is not part of its network
If you use a third-party ATM, both fees can apply to the same transaction.
| Fee Type | Who Charges It | When It Applies | Typical Cost |
|---|---|---|---|
| Surcharge | ATM operator | Using that machine | $2.50-$3.50 |
| Out-of-network fee | Your bank | Using a non-network ATM | $2.50-$5.00 |
| Foreign transaction fee | Your bank | International ATM use | 1%-3% |
Why ATM Operators Charge Surcharges
ATM operators charge surcharges because running a machine is expensive. They have to pay for:
- ATM hardware and software
- cash loading and armored transport
- electricity and network access
- physical security and fraud prevention
- maintenance and repairs
When a customer from another bank uses the machine, the surcharge helps the owner recover part of those costs.
Why Banks Charge Out-of-Network ATM Fees
Your bank may charge an out-of-network fee when you use another bank’s ATM because it often has to compensate the network or machine owner for processing the transaction.
These fees also encourage customers to stay within the bank’s preferred ATM network.
If you want a broader explanation, see our guide to using another bank’s ATM.
Average ATM Fees in the United States
The total cost of using an out-of-network ATM can add up quickly because you may pay both a surcharge and a bank fee. In many cases, a single withdrawal can cost several dollars.
To compare institutions directly, visit our guide to ATM withdrawal fees by bank.
Why ATM Fees Can Feel So Expensive
ATM fees often feel high because they are fixed charges. That means withdrawing a small amount like $20 or $40 can make the fee seem disproportionately expensive.
For example, paying a $4 total fee on a $20 withdrawal is far more noticeable than paying the same fee on a larger withdrawal.
If you only need a small amount of cash, you may also want to read how to withdraw $100 from an ATM.
How to Avoid ATM Fees
- Use your bank’s in-network ATMs whenever possible
- Choose surcharge-free networks such as Allpoint or MoneyPass when your bank participates
- Withdraw larger amounts less often to reduce the number of fee-triggering transactions
- Consider checking accounts that reimburse ATM fees
- Use cash back at retailers instead of an ATM when possible
Helpful related guides:
- Fee-Free ATMs Near You
- How to Withdraw Cash Without Paying ATM Fees
- Allpoint vs MoneyPass
- Banks With the Lowest ATM Fees
International ATM Fees
Using an ATM abroad may trigger even more fees. In addition to surcharges from the foreign ATM owner, your bank may charge an out-of-network fee and a foreign transaction fee.
If you travel often, review our guides to international ATM withdrawal limits and how to avoid international ATM fees.
Frequently Asked Questions
Why do ATMs charge both a surcharge and a bank fee?
The ATM operator may charge a surcharge for using the machine, while your bank may charge an out-of-network fee for processing the withdrawal outside its preferred network.
Can I get ATM fees refunded?
Some banks refund ATM fees automatically, especially for premium checking or online bank accounts. Check your account terms for reimbursement rules.
Do credit unions charge fewer ATM fees?
Many credit unions participate in shared ATM networks, which can make fee-free withdrawals easier to find.
Are all ATM fees avoidable?
Not always, but many can be avoided by using in-network machines, fee-free networks, retailer cash back, or bank accounts with ATM fee reimbursements.
Key Takeaway
ATMs charge fees because operating and maintaining cash machines is expensive, and both banks and ATM operators use fees to recover costs. The easiest way to avoid paying extra is to use in-network or surcharge-free ATMs whenever possible and plan your withdrawals strategically.
