Out-of-Network ATM Fee: What It Costs and How to Avoid One

Out-of-network ATM fees average $4.86 per withdrawal as of 2025, and that total is two charges stacked together: a surcharge from the machine’s owner and a separate fee from your own bank. You can avoid them by sticking to surcharge-free networks like Allpoint or MoneyPass, opening an account that reimburses ATM charges, or getting cash back at a store register when you pay with your debit card.

The Two Charges Behind One Withdrawal

Every out-of-network withdrawal triggers two separate fees. The first is a surcharge from the ATM operator, which is the bank or independent company that owns the machine. It covers hardware, cash loading, and the connection to the interbank network. Federal rules require the operator to show this surcharge on the screen before you commit, and you can back out at no cost if the amount is too high.

The second fee comes from your own bank for routing a withdrawal through an outside system. It doesn’t appear on the ATM screen. It shows up later on your statement, which is why most people underestimate what they’re actually paying.

What Out-of-Network ATM Fees Actually Cost

The most recent annual survey puts the average operator surcharge at $3.22 and the average fee from your own bank at $1.64, for a combined $4.86 per transaction. That’s a record high for the third straight year, up from $4.77 the year before. Expensive metro areas run higher. Rural locations with fewer machines and higher cash-delivery costs can also run above average.

Pull $60 from an out-of-network machine and you’re paying roughly 8% of the withdrawal in fees. Do that twice a week and you lose about $500 a year. On a $20 withdrawal, nearly a quarter of the cash you accessed goes to the two fees.

The On-Screen Disclosure That Lets You Cancel

Federal law gives you a clear way out before you pay the surcharge. Under Regulation E, which implements the Electronic Fund Transfer Act, any ATM operator charging a fee must display the exact dollar amount on the screen or on paper before the transaction is final. You then choose whether to continue or cancel at no cost.¹

The operator cannot charge you unless it provides this notice and you elect to continue.² One thing to keep in mind: this disclosure only covers the surcharge from the machine. Your own bank’s fee won’t show up on the screen, so count on that extra $1 to $2 even if the on-screen number looks reasonable.

Surcharge-Free ATM Networks

The simplest way to pay nothing is to use a machine that belongs to a surcharge-free network your bank participates in. The two largest are Allpoint, with over 40,000 locations in the U.S. and 55,000 globally, and MoneyPass, with over 40,000 domestic ATMs. Many banks and credit unions belong to one or both, which gives their customers nationwide access without surcharges.

Your bank’s mobile app is the fastest way to find these machines. Most apps include an ATM locator that shows nearby in-network machines, and some let you filter by features like deposit capability or drive-through access. If you don’t use mobile banking, the Allpoint and MoneyPass websites both have ZIP code search tools. Checking before you leave saves you from discovering a $3 surcharge once you’re already at the machine.

Accounts That Reimburse ATM Fees

Some banks take a different route: use any ATM you want, and they refund the surcharges. This is common among online-only banks and credit unions that don’t operate their own ATM fleet. Reimbursements usually appear as a statement credit within a few business days. Some accounts offer unlimited refunds; others cap the monthly benefit, often between $10 and $20.

These benefits rarely come free of conditions. A bank might require direct deposit, a minimum balance of $2,500 or more, or a set number of monthly debit transactions. Fall short, and the reimbursement can disappear or the account can shift to a tier that doesn’t include it. Read the fine print before you pick an account for this feature.

Unlimited reimbursement accounts help the most if you travel often or live somewhere with few in-network machines. Even a capped $10 to $15 monthly benefit covers two or three out-of-network withdrawals, which is enough for occasional ATM users.

Getting Cash Back at Checkout

Asking for cash back when you pay with a debit card at a store register sidesteps the ATM entirely. The transaction processes as a debit purchase rather than an ATM withdrawal, so your bank typically doesn’t charge an out-of-network fee.³

Some retailers charge their own fee for the service, running from $0.50 to $2.50 depending on the store and amount. Walmart, Target, and Walgreens don’t charge for cash back; some dollar stores and grocery chains do.³ Even where a fee applies, it’s almost always less than the $4.86 average at an out-of-network ATM.

The catch is amount. Most retailers cap cash back between $5 and $50 per transaction, though some grocery chains go up to $200 or $300.³ For a large cash need, you’ll still want an ATM or a teller.

Why a Credit Card Is the Worst Option at an ATM

You can use a credit card at an ATM, but the cost is steep compared to a debit withdrawal. A cash advance triggers three charges at once: the ATM operator’s surcharge, a cash advance fee from your card issuer (typically 3% to 5% of the withdrawal, minimum $5 to $10), and a higher interest rate that starts accruing immediately.

That last piece is the one people miss. Regular credit card purchases have a grace period, so you pay no interest if you clear the balance by the due date. Cash advances have no grace period. Interest starts the moment the cash leaves the machine, and the average cash advance APR runs around 24% to 25%. On a $200 advance, you can easily pay $15 to $20 in combined fees on day one, plus daily interest from there.

If a debit card is an option, use it. The $4.86 average starts looking cheap next to what a credit advance costs.

Foreign ATMs Add Another Fee

International withdrawals add another layer. On top of any surcharge from the foreign operator, your bank may charge a foreign transaction fee of 1% to 3% of the amount. It’s percentage-based, so it scales with the withdrawal. A $300 withdrawal at 3% costs $9 in currency conversion alone, before any flat charges.

Overseas ATMs often offer “dynamic currency conversion,” which shows the amount in U.S. dollars instead of local currency. The exchange rate is marked up heavily, and the ATM operator keeps the difference. Always choose to be charged in local currency. Your bank’s rate, even with a foreign transaction fee, is almost always cheaper.

If you travel regularly, look for accounts that waive foreign transaction fees. Several online banks and brokerage checking accounts offer this, sometimes paired with worldwide ATM reimbursement.

If the Machine Takes Your Money and Doesn’t Deliver

ATMs sometimes jam, run out of bills, or dispense the wrong amount after already debiting your account. Under Regulation E, receiving the wrong amount from an ATM is an error your bank must investigate.⁴

You have 60 days from the date your bank sends the statement showing the transaction to report the problem. Contact the bank by phone or in writing with your name, account number, the date and amount, and what happened. If you call first, the bank can require a written confirmation within 10 business days.⁴ Take a photo of the screen, keep the receipt, note the exact location, and screenshot your bank app showing the balance. When the error involves an out-of-network ATM, the investigation can take longer because your bank has to coordinate with the operator, but the same federal timeline protections apply.

1
Consumer Financial Protection Bureau. 12 CFR 1005.16 – Disclosures at Automated Teller Machines
2
eCFR. 12 CFR Part 1005 – Electronic Fund Transfers (Regulation E)
3
Consumer Financial Protection Bureau. Issue Spotlight: Cash-back Fees
4
Consumer Financial Protection Bureau. 12 CFR 1005.11 – Procedures for Resolving Errors