When you use an ATM that is not operated by your own bank, you will typically incur two separate fees. Understanding these charges is crucial for managing your account effectively and avoiding unnecessary costs.
Understanding the Two Primary ATM Fees
The total cost of a non-bank ATM withdrawal usually consists of a fee from the ATM operator and a fee from your own financial institution.
- ATM Operator Surcharge: This is the fee charged by the owner of the ATM you are using. According to industry data from Bankrate's 2023 Checking Account and ATM Fee Study, the average out-of-network ATM surcharge in the United States reached a record high of $4.73. This fee is typically displayed on the ATM screen, and you must agree to it before completing the transaction.
- Foreign ATM Fee (or Out-of-Network Fee): This is a separate charge levied by your own bank for using an ATM outside its proprietary network. The same Bankrate study found the average fee charged by banks for this was $1.58, making the total average cost to use a non-bank ATM over $6.
How to Find Fee Information for Banks Near You
Since fees can vary significantly between institutions, you must research your specific bank or credit union. Here is a practical method to find accurate information.
- Consult Your Account Agreement and Fee Schedule: Your bank is required to provide a detailed fee schedule. This document, available online in your account portal or as a PDF, will list the exact "Foreign ATM" or "Out-of-Network ATM" fee.
- Use Your Bank's ATM Locator Tool: Every major bank and credit union offers an online branch and ATM locator. Using this tool with your location will show you the network of fee-free ATMs available to you, clearly indicating which machines are "in-network."
- Contact Customer Service Directly: For the most precise and current information, a call to your bank's customer service line can confirm their specific out-of-network ATM fee policy.
Strategies to Avoid Non-Bank ATM Fees
Proactive management can help you minimize or eliminate these fees entirely.
- Stick to Your Bank's Network: Plan cash withdrawals around visits to your bank's branches or its in-network ATMs, which are often found in major retail stores and pharmacies.
- Use Cash Back at Retailers: Many grocery stores, pharmacies, and other retailers offer cash back with a debit card purchase at the point of sale, which typically incurs no fee from your bank.
- Consider Online Banks and Credit Unions: Many online banks and local credit unions participate in nationwide ATM networks, such as Allpoint or CO-OP, providing access to tens of thousands of surcharge-free ATMs. Some online banks also offer reimbursement for a set number of out-of-network ATM fees each month.
- Plan Your Cash Needs: Withdrawing larger amounts less frequently from an in-network ATM can reduce your need for out-of-network transactions.
In summary, the fees for using non-bank ATMs are a combination of charges from both the ATM owner and your own institution. By reviewing your bank's fee schedule, utilizing its ATM locator, and adopting strategic cash access habits, you can make informed decisions to keep more of your money in your account.