Managing your finances can be challenging for many people in the US, especially those who have immigrated from a different country. One thing you might not think about until it hits your wallet is ATM fees, especially those pesky out-of-network charges.
At Remitly, we understand the importance of making every dollar count, especially when you’re sending money back home or adjusting to life in a new place. That’s why we’ve put together this comprehensive guide to out-of-network ATM fees. Whether you’re a recent immigrant, an expat, or just someone looking to save on banking costs, this article will provide you with the knowledge and strategies to avoid unwanted fees.
Understanding out-of-network ATM fees
Let’s break down what out-of-network ATM fees are and how they work.
What defines an out-of-network ATM?
First, an Automated Teller Machine (ATM) is an electronic device that allows you to perform basic banking transactions without the need for a human bank teller. With an ATM, you can withdraw cash, deposit money or checks, check your account balance, transfer funds between accounts, and sometimes even pay bills – at any time of day or night.
An out-of-network ATM is any automated teller machine not operated by your bank or its partners; financial institutions usually belong to shared networks (e.g. Cirrus, Plus, or Allpoint) that allow free transactions at partner ATMs. When you use these machines outside of your bank’s network, your bank may charge you a fee, and the ATM’s owner can also add a surcharge. For example, if you bank with Wells Fargo but use a Chase ATM, you’re outside of Wells Fargo’s network. Each bank defines its network, so it’s important to know whether a machine falls within yours.
How do ATM networks operate?
ATM networks are the systems that connect ATMs across banks and financial institutions, allowing customers to use ATMs from different banks without incurring the usual out-of-network fees. When you insert your debit card into an ATM, it reads your account details and sends a request through the network, like Cirrus, Plus, or Allpoint, to your bank to verify your balance and authorize the withdrawal. This process happens in seconds, whether you’re in your hometown or traveling elsewhere.
Banks partner with these networks to enable fee-free access to a wider range of ATMs, making it easier for you to get cash without added costs.
Typical fees associated with out-of-network ATM usage
When you use an out-of-network ATM, you can face two types of fees:
- Your bank’s fee: Your bank may charge you a fee for using an ATM outside its network.
- ATM owner’s surcharge: The owner of the ATM you’re using may also charge a surcharge.
Costs of using out-of-network ATMs
There are actual costs associated with using out-of-network ATMs. Understanding these costs can give you an idea of the typical fees you might encounter.
Average fees in the US
Bankrate’s 2024 survey reveals that ATM fees have increased by 23% over five years, peaking at $4.77 nationally, a slight increase from $4.73 in 2023. This cost includes the bank’s fee and the ATM operator’s surcharge. Geographic disparities exist; in cities like Atlanta, fees can climb to $5.33, while Boston averages lower at $4.16.
Impact on checking and savings accounts
Each out-of-network ATM withdrawal deducts the fee directly from your checking or savings account, reducing your available balance. For example, withdrawing $20 might cost you $24.77 after a $4.77 fee. If you use an out-of-network ATM weekly, that’s about $248 annually – money that could cover groceries, bills, or an international transfer via Remitly. These fees apply similarly to both account types, as they’re tied to the transaction, not the account.
If you make frequent withdrawals using an out-of-network ATM, it can:
- Drain your account through compounded fees.
- Trigger overdrafts if balances dip too low.
- Reduce funds available for remittances or emergencies.
Additional bank fees and surcharges
Apart from the standard out-of-network fees, some banks may impose extra charges, such as balance inquiry fees or foreign transaction fees for international ATMs, which are avoidable with services like Remitly. However, for domestic use, the primary costs are the bank’s fee and the surcharge. Always review your bank’s fee schedule to avoid surprises, especially if you’re new to banking in the US.
Strategies to avoid out-of-network ATM fees
Fortunately, there are a number of effective strategies to avoid out-of-network ATM fees.
Use in-network ATMs
The simplest way to avoid fees is to use ATMs that belong to your bank’s network. Most banks provide online tools or mobile apps that can help you locate in-network ATMs in your area.
For example, Bank of America customers can use any Bank of America ATM for free, and many banks partner with networks like Allpoint, offering access to over 50,000 fee-free ATMs. Planning your cash withdrawals around these ATMs can save you a significant amount of money over time.
Find banks that reimburse out-of-network ATM fees
Some bank accounts come with reimbursement of out-of-network ATM fees, either partially or entirely. Although these accounts may have other requirements, such as a minimum balance or monthly fees, they can be a cost-effective option if you frequently need to use out-of-network ATMs.
For instance:
- Charles Schwab grants unlimited ATM fee rebates worldwide with its High Yield Investor Checking Account, made using the Schwab Bank Visa Platinum Debit Card, wherever Visa is accepted globally. There are no minimum balance requirements for the account, and it has no monthly fees.
- TD Bank provides unlimited reimbursements for non-TD ATM fees with its Beyond Checking account if you maintain a $2,500 minimum daily balance. The monthly maintenance fee ($25) can be waived by maintaining this balance or meeting other criteria like direct deposits or combined balances.
- EverBank reimburses up to $15 monthly without a minimum balance in out-of-network ATM fees, or unlimited with a $5,000 average daily balance. It also does not charge monthly service fees or overdraft fees
Utilize fee-free ATMs by searching through banking apps
Apps like Allpoint can help you locate over 55,000 fee-free ATMs for partnered banks. There are also similar applications like MoneyPass and CO-OP Network. Using these apps can help you find convenient and cost-effective ways to access your cash. Before using an ATM, check if it displays a fee warning on the screen as most ATMs will alert you before processing the transaction.
Alternatives to out-of-network ATM usage
Beyond finding ways to avoid the fees, there are also alternatives to using out-of-network ATMs altogether.
Cash back options at stores
Many stores permit you to get cashback when you make a purchase with your debit card. This can be a convenient way to get cash without having to visit an ATM. Some stores may have limits on the amount of cash back you can receive.
Use payment apps and digital wallets
Payment apps and digital wallets like PayPal, Venmo, Cash App, and others are popular options. These apps allow you to send and receive money electronically, often eliminating the need for cash. Many small businesses, from coffee shops to street vendors, accept these payments. For immigrants, apps like Remitly also simplify sending money abroad without cash withdrawals, saving you both time and fees.
Accessing cash through peer-to-peer payment features
Peer-to-peer apps like Venmo or Zelle let you send money to friends or family, who can then give you cash. For example, you could send $20 to a friend via Venmo, and they hand you the cash. This method is fee-free for most transactions and works well in a pinch, especially in communities where cash is still common.
Choosing the right bank to minimize fees
Choosing the right bank can impact how much you pay in ATM fees both in-network and out-of-network.
Comparing different banks and their ATM fee policies
When choosing the right bank for you, it’s worth comparing their ATM fee policies. Some banks have extensive ATM networks, reducing the likelihood of encountering out-of-network ATMs. Others may offer accounts with ATM fee reimbursements. Consider your ATM usage habits and choose a bank that fits your needs. Here is a breakdown of major US banks and their policies:
| Bank | ATM Network Size | Out-of-Network Fee | Reimbursement Policy |
| Charles Schwab | Global | None | Unlimited worldwide |
| TD Bank | 1,300+ | $3 | Unlimited with $2,500 balance |
| Capital One | 70,000+ | None | N/A |
| EverBank | 80,000+ | $2 | Up to $15, or unlimited with $5,000 balance |
Significance of minimum balance and direct deposits
Some banks may waive or reimburse ATM fees if you maintain a minimum balance or set up direct deposits. These requirements can vary between banks, so it’s necessary to understand the terms and conditions before opening an account.
Importance of banking institutions’ ATM networks
The size and accessibility of a bank’s ATM network are important factors to consider. A larger network means more convenience and a reduced risk of paying out-of-network fees. If you travel frequently or live in an area with limited ATM options, a bank with extensive in-network facilities could be an ideal choice.
Frequently asked questions
Can you withdraw money from all ATMs?
Yes, you can withdraw money from most ATMs that accept your card’s network. However, using an out-of-network ATM may result in fees from your bank and the ATM operator.
Are ATMs GPS tracked?
Some ATMs have GPS trackers to prevent theft and aid recovery if stolen, but not all do – it’s an optional security feature. More commonly, banks record the location of each ATM transaction using the machine’s unique identifier, helping detect fraud without needing GPS.
How to determine if an ATM is part of my network?
To find an in-network ATM, look for your bank’s logo or network logos like Allpoint or MoneyPass on the machine. Use your bank’s mobile app or website to locate fee-free ATMs nearby. Most ATMs also display a fee warning if they’re out-of-network, so it’s worth double-checking before making a cash withdrawal.