Do Online-Only Banks Have ATMs?

Online-only banks, also known as digital banks, operate primarily through websites and mobile applications. This digital-first approach allows them to streamline operations and often offer competitive financial products. While these institutions do not possess their own proprietary Automated Teller Machines (ATMs), they ensure customers have convenient access to cash through extensive ATM networks.

How Online Banks Provide ATM Access

Online banks leverage partnerships with large ATM networks to provide widespread cash access. These networks, such as Allpoint and MoneyPass, consist of thousands of ATMs located in various retail environments and other bank branches. This allows online banks to offer ATM services without the significant costs of building and maintaining their own infrastructure, contributing to lower fees and attractive interest rates.

Many online banks provide access to extensive fee-free ATM networks, allowing customers to withdraw cash without incurring charges. For instance, the Allpoint network alone boasts over 55,000 surcharge-free ATMs globally. Using an ATM outside a bank’s partnered network can result in fees from both the ATM operator and the customer’s bank. These typically include a fee from the ATM operator, known as a surcharge, and a separate fee from the customer’s own bank. The combined average fee for an out-of-network ATM transaction can be around $4.77, with approximately $3.19 from the ATM owner and $1.58 from the customer’s bank.

To mitigate these costs, some online banks offer ATM fee rebates, reimbursing customers for fees charged by out-of-network ATMs. These reimbursements may be unlimited or capped at a certain amount per statement cycle. Banks often credit these reimbursements automatically to the customer’s account, typically at the end of the monthly statement cycle.

Locating and Using Compatible ATMs

Customers of online banks can easily locate compatible ATMs through various digital tools provided by their financial institution. Most online banks offer a dedicated ATM locator tool within their mobile banking applications or on their websites. These tools typically display a map with nearby fee-free ATMs. Additionally, ATM networks themselves, such as Allpoint or MoneyPass, often provide their own locator websites or apps to find participating machines.

Once at an ATM, common transactions available include cash withdrawals and balance inquiries. Some ATMs may also allow for transfers between accounts linked to the debit card. Daily withdrawal limits are set by the individual bank and can vary, and are in place to protect both the customer and the bank from potential fraud.

Before completing any transaction, check for potential fees displayed on the ATM screen. While many online banks cover fees for in-network ATMs, an ATM outside the network might charge a surcharge. This on-screen notification allows customers to decide whether to proceed with the transaction or seek an alternative fee-free option.

Managing Cash Beyond ATMs

Managing physical cash, particularly making deposits, often requires alternative methods for online-only bank customers. One common method involves partnerships with major retail chains. Customers can deposit cash at participating stores like CVS, Walgreens, 7-Eleven, Walmart, Dollar General, and Family Dollar, often utilizing services like Green Dot or Reload @ the Register. This process typically involves handing the cash and a debit card to the cashier, who then processes the deposit. While some retailers offer this service fee-free, others may impose a small charge, ranging from approximately $0.50 to $3.50.

Another option for depositing funds, particularly for those receiving paper payments, is through mobile check deposit. Most online banks offer this feature within their mobile apps, allowing users to photograph a check and deposit it electronically into their account. This serves as a digital solution for converting paper payments into digital funds. For larger or less frequent cash deposits, purchasing a money order with cash and then depositing it via mobile check deposit can also be an option.

Beyond deposits, obtaining cash without an ATM is also possible through cash back at point-of-sale (POS) terminals. When making a purchase at many grocery stores or other retailers, customers can request cash back during the debit card transaction. This allows for instant cash access, effectively turning a portion of the purchase into a cash withdrawal. Daily cash back limits typically range from $20 to $300 per transaction, and some retailers might charge a small fee for this service.