Why Are ATM Fees So High?
Out-of-network ATM usage typically triggers two separate fees: a surcharge from the ATM owner (usually $2 to $3.50) and a foreign ATM fee from your bank (usually $2 to $3). These fees have risen steadily over the years. ATM operators set surcharges to cover the cost of maintaining machines, and banks charge their own fee because the transaction involves an external network.
How Can You Avoid Paying ATM Fees?
Use in-network ATMs that belong to your bank or its partner network. Many online banks reimburse out-of-network ATM fees up to a monthly limit. Get cash back at retail checkout counters instead of using ATMs. Use digital payment methods to reduce your need for cash. Some credit unions participate in shared branching networks that provide free ATM access at thousands of locations.
Do Online Banks Charge ATM Fees?
Most online banks do not charge their own ATM fees and many reimburse fees charged by ATM operators — often up to $10 to $15 per month. Some online banks participate in large ATM networks like Allpoint or MoneyPass that provide surcharge-free access at tens of thousands of ATMs nationwide. This is one of the key advantages of online banking.
Frequently asked questions
Can I get ATM fees refunded?
Some banks automatically reimburse out-of-network ATM fees. If yours does not, you can ask — some banks will refund fees as a one-time courtesy. Switching to a bank that offers ATM fee reimbursement is the most reliable long-term solution.
Are ATM fees tax deductible?
Personal ATM fees are not tax deductible. However, ATM fees incurred for business purposes may be deductible as a business expense if you maintain proper records and the withdrawal was for a legitimate business need.