How much are ATM fees?

Have you ever stopped to get quick cash at an ATM and noticed a few extra dollars missing from your balance? That’s an ATM fee, and those fees can add up pretty fast. If you’re new to ATMs, here’s a guide on how ATMs work. Now, let's see how much ATM fees are and how you can avoid them.

How much is the average ATM fee?

According to a Bankrate survey, the average total cost of an out-of-network withdrawal hit $4.86, the highest it’s been in years. That total usually includes two parts:

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1. The fee from the ATM owner, usually around $3.22

2. The fee from your own bank, which averages about $1.64 just for using someone else’s machine.

So you’re basically paying twice just to access your own money.

Why are ATM fees so high?

ATM fees always seem to be inching up. Banks and ATM operators (that are not affiliated with a bank) set their own fees. Over time, charges have gone up to cover costs that are also going up. Here are a few reasons for the increase in ATM fees:

• ATMs cost more to run. Between software updates, cash deliveries, security systems, and electricity and rent, the cost of keeping an ATM up and running keeps going up.

• Fewer people use cash. With digital wallets becoming the norm, ATMs don’t see as much use. Fewer withdrawals mean each site has to cover a growing share of the costs.

• Independent ATMs charge more. Those machines you see in gas stations or corner stores aren’t run by banks, and they usually add higher fees to make a profit.

• Some banks add their own fees. Many banks charge you extra for using another bank’s machine, and some have quietly raised those rates in recent years.

How to avoid paying ATM fees

ATM fees add up, but you can avoid many of them with a few simple habits. Try these easy strategies to avoid ATM fees:

• Use in-network ATMs. Most banks have a network you can check in their app to find fee-free machines.

• Ask for cash back. When paying with a debit card at a store or pharmacy, you can usually add up to $100 in cash without any fee.

• Plan ahead. Withdraw a little extra when you know you’ll need cash over the weekend or on vacation.

Check out our list of 5 ways to avoid ATM fees to keep even more of your money when you need cash on hand.

Greenlight doesn’t charge ATM fees

With Greenlight, families don’t have to worry about ATM fees. Kids and teens can use their debit cards at any ATM, and Greenlight* won’t charge a fee when they do.

Just keep in mind, some ATM owners might still add their own fee. That charge comes from your Greenlight balance, but you can avoid it by choosing machines that show “no fee” before you withdraw.

FAQs

Do all ATMs charge fees?

No. ATMs within your bank’s network usually don’t charge fees, and some independent ATMs also offer fee-free withdrawals (it will say this on the machine). The biggest costs come from using machines outside your bank’s network.

Why do some ATMs charge more than others?

The fees depend on who owns the ATM. Machines in convenience stores, airports, and entertainment venues tend to have higher fees than bank ATMs.

Does Greenlight reimburse ATM fees charged by other banks?

Greenlight itself doesn’t charge any fees, but if an ATM owner adds one, that amount comes from your balance. Families can avoid these extra charges by finding a nearby ATM with no additional fees.

Want more money know-how? Meet the Greenlight debit card and app for the next generation. Kickstart a lifetime of financial literacy today.💰Try Greenlight, one month, risk-free.† 

*Greenlight is a financial technology company, not a bank. The Greenlight app facilitates banking services through Community Federal Savings Bank (CFSB), Member FDIC.