ATM Fees and How to Avoid Them

Using out-of-network ATMs leads to access fees lowering withdrawn cash amounts. ATM surcharge fees average $3 nationwide but reach as high as $5 per transaction. Over time these convenience charges erode savings. Knowing ways to avoid ATM fees through smarter bank selection, transaction choices and fee reimbursements saves money.

Typical ATM Fees and Charges

Common fees associated with using ATMs include:

Transaction fee – Charged each time you withdraw cash, check balances or make deposits at out-of-network ATMs. Typically $2-$5.
Surcharge fee – Added fee the ATM owner charges non-customers for withdrawals on top of any fees your own bank charges. Averages $3.
Out-of-network fee – Additional fee your own bank may charge for using another institution’s ATM on top of the other fees. These average $1-$3.
Foreign transaction fee – 3% added charge imposed by some banks for withdrawals made outside the United States.

Reasons Banks Charge ATM Fees

Banks profit from fees applied to out-of-network ATM usage through:

Generating revenue when non-customers use their ATMs but pay surcharge fees
Discouraging customers from using competitors’ ATMs to retain deposited funds longer
Charging their own non-sufficient funds fees when accounts can’t cover withdrawals plus initial fees
Providing incentive to stay within their ATM networks and branch locations where fees get waived

Higher ATM Fees at Convenience Locations

ATMs located in convenience stores, bars, entertainment venues and hotels impose higher surcharge fees given convenience premiums and tourist volumes.

Expect to pay $5 or more per transaction at machines in:

Hotels and resorts
Casinos and racetracks
Airports
Convenience stores
Sporting/music events

Avoid these spots for frequent withdrawals given steep charges.

How ATM Transactions Trigger Double Fees

Two common scenarios triggering multiple fees:

Using an ATM outside your bank’s network incurs the owner’s surcharge fee immediately. A second out-of-network fee hits later when your bank processes the non-proprietary withdrawal.
Overdrawing your account balance through an ATM withdrawal incurs an initial non-sufficient funds fee from your bank. Then the failed withdrawal attempt still counts as an out-of-network transaction fee as well.

Watch balances closely to avoid compounding fees on single transactions.

Ways to Avoid Paying ATM Fees

Strategies to prevent ATM fees include:

Withdraw cash back for free when making debit purchases at retailers to get necessary bills.
Track monthly withdrawal limits on accounts qualifying for fee waivers to avoid excess costs.
Take max withdrawals at in-network ATMs to reduce total fees paid over time.
Carry sufficient cash, limiting ATM withdrawals to urgent needs when traveling or convenience locations.
Open online bank accounts refunding all ATM fees and providing surcharge-free machines.

Tips to Avoid Fee Pitfalls

Watch for catches maximizing fees like:

“No fee” branded ATMs still charging access fees rather than surcharges
Two withdrawals at the same ATM within minutes count as separate transactions
Withdrawing cash immediately after checking balances triggers double fees
Failed withdrawal attempts due to low funds still incur failed transaction fees

Carefully read screens to avoid opting into unnecessary services doubling charged fees per use.

Choosing Banks With Fee-Free ATMs

The most effective way to avoid ATM fees is using banks within expansive fee-free networks:

Large national banks – Bank of America, Chase, Wells Fargo, Citibank
Major regional banks – PNC, Truist, Regions, TD Bank
Online banks – Ally, Alliant, Charles Schwab, First Internet Bank

Compare locations to identify convenient no-fee access matching your activities.

Finding Additional Fee-Free ATMs

Beyond proprietary ATMs, additional fee-free machines are available via:

Bank branch/ATM locators showing all area fee-free locations, not just branded ones
Co-op Shared Branching participating credit union ATMs
MoneyPass network machines via debit cards offering the logo
Presto! ATMs through Citibank relationships

Getting Foreign ATM Fees Reimbursed

Many online banks and premium accounts reimburse fees for:

Out-of-network ATM fees charged by other institutions
Foreign transaction fees imposed internationally

Typical reimbursements range from $10-$15 monthly covering 5-10 average fees.

Bank Account Alternatives to Minimize ATM Needs

Reduce ATM dependence by:

Linking checking and savings accounts to easily transfer cash digitally
Depositing checks instantly using mobile apps rather than ATMs
Using person-to-person payment apps to receive funds from others directly
Paying with debit/credit cards minimizing cash needs

Why ATM Withdrawal Amounts Matter

The fixed dollar fees charged per transaction make frequent small withdrawals costly:

$3 Fee for $20 Withdrawals

10 withdrawals = $30 in fees to access $200 cash

$3 Fee for $100 Withdrawals

3 withdrawals = $9 in fees to access $300 cash

Withdrawing more per transaction saves exponentially.

Reasons You Should Not Pay ATM Fees

Considering the wide availability of fee-free banking, ATM fees are highly avoidable expenses:

Many banks and credit unions offer thousands of no-fee ATMs regionally and nationally
Online banks provide unlimited ATM fee reimbursements making any machine essentially free
Alternatives like cash back with purchases and mobile deposits limit cash demands
Blending bank networks like credit union co-op branches expands free machine access

With a little awareness, ATM fees disappear costing you $0 through smarter account choices and transaction habits.

Closing Thoughts

ATM fees drain cash particularly with convenience and foreign transactions. But careful usage of extensive free ATM networks, fee reimbursements from online banks, and reduced dependence through alternative delivery methods allows bypassing fees entirely. Access your money for free by selecting banking providers matching your needs and usage patterns. Avoid ATM fees and maximize your hard earned money.