Fees & Fine Print

Why ATM Fees Add Up Faster Than You Think

Banking Essentials Editorial Team Staff Writer · Mar 19, 2023 · 6 min read
Why ATM Fees Add Up Faster Than You Think

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A single ATM withdrawal outside your bank's network can trigger two separate fees. Here's the math and how to avoid it.

Key Takeaways

  • A single out-of-network ATM withdrawal can trigger two separate fees: one from the ATM operator and one from your own bank.
  • The average out-of-network ATM fee combination has exceeded $4.50 per transaction in recent years.
  • Using an ATM twice a week out-of-network could cost you over $400 annually in fees alone.
  • Most banks disclose their ATM fee policies in the account's fee schedule, which is available before you open an account.
  • Several banking options offer ATM fee reimbursements or access to large surcharge-free networks.

The Double-Fee Trap Most People Miss

When you slide your debit card into an ATM that isn't operated by your bank, two separate parties are watching that transaction — and both may charge you for it.

The first fee is the ATM operator surcharge: a charge set by whoever owns that machine, whether it's a convenience store, an independent ATM company, or another bank. The second is your own bank's out-of-network fee, applied because you used a machine outside their approved network. These fees stack on top of each other, and both appear on your account statement, often labeled differently and easy to overlook.

According to Bankrate's annual checking account survey, the combined average cost of an out-of-network withdrawal has consistently exceeded $4.50 per transaction in recent years. That may not sound alarming for a single visit, but the math changes quickly with frequency. See our full breakdown of bank fees for context on how ATM charges compare to other common account costs.

$4.50+

Average combined out-of-network ATM fee

Bankrate's annual checking account surveys have consistently reported combined out-of-network ATM fees exceeding this threshold in recent years.

$494

Potential annual ATM fee cost

Based on two out-of-network withdrawals per week at an average combined fee of $4.75 per transaction.

2

Separate fees possible per withdrawal

An ATM operator surcharge and your bank's own out-of-network fee can both apply to a single transaction.

How the Numbers Add Up Over Time

Consider a straightforward scenario: you withdraw cash at an out-of-network ATM twice a week. The ATM charges a $3.00 surcharge, and your bank adds a $1.75 out-of-network fee. That's $4.75 per visit.

  • Weekly cost: $9.50
  • Monthly cost: approximately $41
  • Annual cost: approximately $494

For young professionals managing tight budgets or trying to build savings, nearly $500 per year quietly redirected to ATM fees is a real setback. This is one of the most common fee traps that drain bank balances over time without triggering any obvious alerts.

Practical Ways to Reduce or Eliminate ATM Fees

Understanding the fee structure is the first step. Avoiding the fees is simpler than most people expect once you know where to look.

Use your bank's ATM locator

Nearly every bank and credit union provides a tool — usually inside their mobile app — that shows surcharge-free ATMs in your area. Making this a default habit before you need cash can eliminate the fees entirely.

Look for large surcharge-free ATM networks

Networks like Allpoint and MoneyPass include tens of thousands of machines across the US. Many grocery stores, pharmacies, and big-box retailers host ATMs that participate in these networks. Check whether your bank or credit union belongs to either.

Ask for cash back at the register

Many grocery stores and retailers allow you to request cash back during a debit purchase at no fee. It's one of the most underused ways to access cash without touching an ATM at all.

Review your account's fee schedule

Banks are required to publish their fee schedules, and some accounts offer monthly ATM fee reimbursements up to a set dollar amount. If your current account charges out-of-network fees with no reimbursement, it's worth comparing alternatives. Also be aware that ATM fees aren't the only costs worth monitoring — paper statement and inactivity fees are equally easy to overlook.

Check Your ATM Network Before You Need Cash

Don't wait until you're standing at a machine to figure out if it's in-network. Open your bank's app now, locate the ATM finder, and identify two or three surcharge-free machines near places you regularly visit. Knowing your options in advance is what prevents fee-triggering decisions made in the moment.

This article is for general informational purposes only and does not constitute personalized financial advice. Consult a licensed financial professional for guidance specific to your situation.

Frequently Asked Questions

Up to two separate fees can apply: a surcharge from the ATM's owner and an out-of-network fee from your own bank. Both appear as separate line items on your account statement. The ATM operator must disclose their fee on-screen before you confirm the transaction.
According to Bankrate's annual checking account survey, the combined average cost of using an out-of-network ATM has hovered above $4.50 per transaction in recent years. This figure combines the ATM operator's surcharge and the account holder's bank fee.
Some banks and credit unions reimburse ATM surcharges up to a monthly dollar limit, and some online-focused accounts offer unlimited reimbursements. Check your account's fee schedule or contact your bank directly to find out what applies to your specific account.
Most banks and credit unions publish ATM locator tools on their websites or mobile apps. Large networks such as Allpoint and MoneyPass include tens of thousands of surcharge-free ATMs across the US, and many financial institutions participate in at least one of them.
Credit unions often participate in shared ATM networks, giving members access to a large pool of surcharge-free machines even if a local branch isn't nearby. However, fees for truly out-of-network machines still apply, so it depends on which network your credit union belongs to.

Banking Essentials Editorial Team

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Banking Essentials Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.

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The content on this site is for informational purposes only and is not a substitute for professional advice. Always consult a qualified professional for guidance specific to your situation.