Do Credit Unions Charge ATM Fees?
Understand how credit unions manage ATM fees. Discover their network-driven approach for widespread, often fee-free, cash access.
Credit unions are member-owned financial cooperatives that provide services, including convenient access to funds through Automated Teller Machines (ATMs). Understanding potential ATM costs involves identifying the types of fees that may be encountered and how credit unions minimize them for their members.
Types of ATM Fees and Their Origin
When using an ATM, individuals may encounter two distinct types of fees. The first is a surcharge fee, also known as an ATM owner fee. This charge is imposed by the entity that owns the ATM (a bank, another credit union, or an independent operator) for the use of their machine by a non-customer. This fee is typically displayed on the ATM screen before the transaction is finalized, giving the user an opportunity to cancel if they choose not to proceed.
The second type of charge is a foreign ATM fee, sometimes referred to as an out-of-network fee. This fee is levied by the user’s own financial institution, such as their credit union, for using an ATM that is outside of its direct network. This charge is separate from any surcharge fee imposed by the ATM owner. While some credit unions may waive these fees or offer reimbursements for out-of-network transactions up to a certain limit, others might apply a fee for using ATMs not directly affiliated with them.
Credit Union ATM Networks and Access
Credit unions ensure widespread ATM access for their members through participation in extensive shared networks, despite often having fewer proprietary physical branches than large commercial banks. These shared ATM networks enable members to use ATMs belonging to other participating credit unions or even some banks without incurring a surcharge fee from the ATM owner. Notable examples of such networks include the CO-OP Network and the Allpoint Network.
The CO-OP Network provides access to over 30,000 surcharge-free ATMs across the country, with locations often found in popular retail establishments like 7-Eleven, Costco, and Walgreens. Many ATMs within the CO-OP network also offer deposit-taking capabilities. Similarly, the Allpoint Network offers access to more than 55,000 surcharge-free ATMs globally, including over 40,000 locations in the U.S. at retailers such as Target, CVS, and Walgreens. Participation in these networks allows credit unions to significantly expand fee-free ATM access for their members. While using an ATM within these shared networks typically helps members avoid the surcharge fee, a member’s own credit union might still apply a foreign ATM fee if the ATM is not part of a specific “fee-free” arrangement, even if it operates within a broader network like Visa’s Plus or Mastercard’s Cirrus.
Finding Fee-Free ATMs
Credit union members have several effective methods for locating ATMs that do not impose fees. Many shared ATM networks provide dedicated online locators or mobile applications that members can use. These tools allow users to search for surcharge-free ATMs by entering a zip code or by using their current location. For instance, both the CO-OP Network and the Allpoint Network offer online locators and mobile apps.
Members should also consult their own credit union’s website or mobile application, as many institutions provide their own ATM locators that integrate with their preferred networks. Utilizing an ATM directly owned by one’s credit union, if available, ensures a fee-free transaction. Additionally, some credit unions offer programs that rebate or reimburse members for out-of-network ATM fees they may incur. Eligibility for these reimbursement programs often depends on specific account activity or balance requirements, and the amount reimbursed might be capped monthly. Members should contact their credit union directly to understand the specific terms and conditions of any available fee rebate programs.