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How much are the ATM fees?

ATMs have evolved since the 1970s when banks began to introduce them on a large scale. Today, nearly 500,000 ATMs are operating in the US market, according to the ATM Industry Association (ATMIA).

Over time, ATMs have evolved to do more than just dispense cash. You can deposit checks or cash, transfer funds between accounts, get account balance information, and pay bills. To keep up with trends, some ATMs allow transactions with a contactless card, virtual card, or digital debit card app in your smartphone’s digital wallet. But you may be charged for using an ATM. Here’s what you need to know.

What are the ATM fees?

Most banks have a network of ATMs that provide free access to your money. But if you go out of the network, you may be charged fees, including:

  • ATM operator fees. Also known as a surcharge, an operator fee is charged by the owner of the ATM to non-customers using their ATMs. ATM owners can be a different bank, a business unrelated to the bank, or even an individual investor looking to earn passive income.
  • Your bank’s out-of-network charges. If you use an ATM outside your bank’s network, you may have to pay that other bank’s fees – and your own bank may charge you a fee. Some banks waive off-grid fees, while others will reimburse you for ATM fees charged by external banks, usually up to a limit.
  • International transaction fees. Consumers who use ATMs when traveling outside of the United States will want to be advised of the additional charges. For example, Bank of America customers with the Advantage SafeBalance Banking account in New York who use a network outside of the BofA network are charged $ 2.50 for each withdrawal, transfer, or balance request in the United States. In addition, the ATM operator may impose access fees for withdrawals. . Other financial institutions charge lower transaction fees: Connexus Credit Union charges transaction fees of up to 1.5%, while Fidelity customers with a debit card through a brokerage account pay transaction fees of up to 1.5%. 1% foreign transaction fee.

Average bank charges at ATMs

Off-grid ATM fees have fallen 5 cents in the past year to an average of $ 4.59 – the lowest since 2016, according to Bankrate’s current account and ATM fee study 2021. The amount is the sum of two numbers: the average fee that a bank charges its customers who use an ATM outside of its network ($ 1.51) plus the average ATM surcharge of the ATM owner. automatic ($ 3.08).

Over the course of a year, the fee for weekly ATM withdrawals from an off-network ATM would be $ 239.

ATM fees continue to rise. In 1998, when Bankrate started tracking ATM fees, the average total ATM fee was $ 1.97.

Total ATM fees vary by city, ranging from $ 5.23 in Atlanta in the high end to $ 3.90 in Los Angeles.

What do banks charge?

Bankrate reviewed account information for six financial institutions to provide a sample of the variability in ATM fees. Here is what we found:

Different types of account ownership Number of free ATMs in the network Off-grid charges billed Additional information
Ally Over 43,000 Allpoint ATMs in the United States None charged by Ally Ally will reimburse fees billed to other ATMs, up to $ 10 per statement cycle.
Bank of America About 17,000 $ 2.50 for each transaction at a non-BofA ATM in the United States and $ 5 internationally ATM fees are reimbursed for Preferred Rewards Platinum Honors customers.
A capital letter Over 70,000 Capital One and Allpoint toll-free ATMs, also located in select pharmacies and stores. Bank Check 360 customers are not billed by Capital One Customers don’t pay overseas transaction fees with 360 products, but if they go out of the Allpoint network, the ATM owner can charge a fee. Non-360 customers may receive a $ 2 fee when transacting at an ATM outside the United States
Connexus Credit Union Members have access to over 54,000 ATMs at no additional cost in the CO-OP and MoneyPass ATM networks. None billed by Connexus Customers with an Xtraordinary Connexus chequing account can get a $ 25 monthly discount on ATM surcharges if certain conditions are met.
LendingClub Bank Customers have access to over 20,000 ATMs nationwide through the online banking arrangement with two ATM networks at no additional cost: MoneyPass and Sum. None charged by LendingClub Bank Customers enjoy discounts on ATM fees for all off-network ATMs, with no limit on transactions.
Wells fargo No charge for Wells Fargo customers at over 13,000 ATMs $ 2.50 for account balance requests as well as transfers between accounts linked to certain non-bank ATMs. $ 2.50 fee for cash withdrawals from ATMs other than Wells Fargo in the United States Primary Wells Fargo wallet chequing account customers get unlimited refunds worldwide.

How to avoid ATM fees

ATM fees can be objectionable, but they are preventable with a few simple strategies.

“As with health insurance, when it comes to ATM fees, it pays to stay in the network,” says Greg McBride, CFA, chief financial analyst for Bankrate. “Going out of the network often means paying two fees – one to the owner of the ATM and another to your own bank. Receiving cash when you use your debit card at a supermarket or drugstore is another option for accessing cash either for free or at a cost well below the double whammy of off-grid ATM fees.

Additionally, consumers can avoid ATM fees by going to a physical bank branch to complete various transactions or inquiries on their account. Mobile banking can also help with inquiries and some transactions, such as depositing checks, transferring funds between accounts, and paying bills, and will avoid ATM fees.

Consumers can also choose an online bank with a large ATM network or one that reimburses some ATM fees.

At the end of the line

Even though cashless payment options are becoming more popular, there are still times when cash payment is necessary or preferred. Knowing which ATMs can be used without incurring a charge can help you avoid the expense of having the cash on hand you need.

Learn more:

  • Poll: Current Account Interest Charges Hit All-Time High, Average Yield Bonds Hit All-Time High
  • The best chequing accounts
  • Bank overdraft protection: do you need it?

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