ATM fees average $4.86 per out-of-network withdrawal in the most recent Bankrate survey, because two separate charges usually stack: the machine owner’s surcharge and your own bank’s out-of-network fee.1Bankrate. Survey: ATM Fees Hit Record High for Third Straight Year While Average Overdraft Fee Dips A single $100 withdrawal from the wrong machine can quietly leave your balance nearly $105 lighter. International withdrawals, balance inquiries, and machines in casinos, airports, and tourist areas push the number higher still.
The Two Fees That Stack
The first charge comes from whoever owns the ATM. Retail banks own some machines, but independent operators place them in convenience stores, bars, gas stations, and hotel lobbies, and each sets its own surcharge to cover hardware, cash replenishment, and profit. The national average is now $3.22, a fourth straight annual increase.2Bankrate. ATM Fees Hit Record High for Third Consecutive Year Drugstore and grocery machines commonly run $2.50 to $3.00. Casinos, stadiums, airports, and tourist zones often charge $5.00 or more.
The second charge comes from your own bank. When you use another institution’s machine, your bank typically adds an out-of-network fee to cover routing the transaction through an external processor and settling with the other institution. The average is $1.64, the highest level since 2018.1Bankrate. Survey: ATM Fees Hit Record High for Third Straight Year While Average Overdraft Fee Dips The Consumer Financial Protection Bureau puts the combined average out-of-network cost at roughly $4.77.3Consumer Financial Protection Bureau. Issue Spotlight: Cash-back Fees Both fees come out of your balance along with the cash.
Extra Costs When You Withdraw Abroad
Foreign ATMs bring percentage-based charges that grow with the withdrawal. Most U.S. banks add a foreign transaction fee of 1% to 3%, on top of whatever the machine operator charges locally. A $300 withdrawal at a 3% foreign transaction fee is $9 in bank charges alone before the operator’s cut.
Currency conversion adds a smaller layer. Your bank or card network converts at a rate that usually includes about a 1% markup over the wholesale rate, baked into the exchange rate rather than shown as a line item.
Dynamic Currency Conversion
Some foreign ATMs offer to convert the withdrawal into U.S. dollars on the spot. This is dynamic currency conversion, and the operator sets the rate. Sample markups in Mastercard’s own merchant guidance range from 3% to 8% above the base rate.4Mastercard. Dynamic Currency Conversion Performance Guide Merchant Version When the screen asks whether you want dollars or the local currency, choose the local currency. Your bank’s conversion will almost always beat the machine’s.
Balance Inquiries Cost Money Too
Withdrawals aren’t the only thing an ATM charges for. Checking your balance at an out-of-network machine can trigger a surcharge from the owner, and your bank may add its own inquiry fee on top. Skip it. Check your balance through your bank’s app or website and the transaction costs nothing.
How to Avoid ATM Fees
Five out-of-network withdrawals a month at $5 each runs about $300 a year. A few practical moves cut that to zero.
Use a Surcharge-Free Network
The three largest surcharge-free networks in the U.S. are Allpoint, MoneyPass, and CO-OP. Allpoint alone covers more than 55,000 ATMs worldwide, including machines inside Costco, CVS, Target, Walgreens, and Walmart.5Allpoint Network. Allpoint for Consumers Many banks and credit unions belong to at least one of these networks, so surcharge-free machines may already be near you. Check your bank’s app or website for a network ATM locator before walking up to a random machine.
Credit union members also have access to the CO-OP network’s roughly 30,000 surcharge-free ATMs at retailers like Circle K, Costco, and Publix.
Open an Account That Reimburses Fees
Some banks refund out-of-network ATM fees each month. Caps vary. Several online banks reimburse $10 to $20 monthly, enough to cover a few withdrawals. Charles Schwab’s Investor Checking account and certain LendingClub and Axos accounts reimburse ATM fees with no monthly cap.6Bankrate. 8 Banks That Reimburse ATM Fees If you travel often or live where your bank’s machines are scarce, a reimbursement account usually pays for itself.
Get Cash Back at the Register
Most large retailers let you take cash back on a debit card purchase, and most don’t charge for it. The CFPB found that Walmart, Target, Walgreens, CVS, and Albertsons all offer cash back without a fee, while dollar stores charge $1.00 to $2.50 depending on the amount.3Consumer Financial Protection Bureau. Issue Spotlight: Cash-back Fees At the terminal, choose “debit,” enter your PIN, and the cash-back option appears. Per-transaction maximums typically run from $20 at some retailers to $300 at others.
Premium Checking, With a Caveat
Most large banks waive out-of-network ATM fees on premium checking tiers, but the minimum balance requirements are steep, often $15,000 to $75,000 or more in combined deposit and investment accounts. For most people, parking that much cash to save on ATM fees costs more in forgone interest than it saves. An online reimbursement account usually makes more sense.
What the Machine Has to Tell You
Federal Regulation E requires any ATM operator that charges a surcharge to display the exact dollar amount on-screen or on paper before the transaction goes through, and to let you cancel without paying.7eCFR. 12 CFR 1005.16 – Disclosures at Automated Teller Machines If the fee never appears on the screen, the operator isn’t legally allowed to collect it. The same disclosure rule covers balance inquiry surcharges. Watch the screen before you tap “yes.”
Daily Withdrawal Limits
Fees aren’t the only ceiling on ATM cash. Most banks cap daily withdrawals somewhere between $300 and $1,500, based on account type and how long you’ve been a customer. Basic and newly opened accounts sit at the lower end; established premium accounts get higher limits. If you need more than the daily cap, call your bank to request a temporary increase, or visit a branch to withdraw from a teller.