What Are the Disadvantages of Using an ATM From Another Bank?

Automated Teller Machines (ATMs) are a common part of daily financial life, offering convenience for accessing cash and performing transactions. They provide immediate access to funds, unlike traditional bank hours. While ATMs offer flexibility, the experience can vary significantly when using a machine outside your primary bank’s network. Understanding the potential drawbacks of such transactions is important for managing personal finances.

Understanding Transaction Fees

Using an ATM not affiliated with your bank incurs a dual fee structure. The first is a surcharge levied by the ATM owner, usually another financial institution or independent operator. This fee, averaging around $3.19, is displayed on the ATM screen before you finalize your withdrawal, allowing you to cancel if the cost is too high.

In addition to the ATM owner’s surcharge, your own bank may impose an out-of-network fee for using an ATM outside its designated network. This fee averages approximately $1.58 per transaction. The combination of these two charges results in an average total cost of $4.77 for a single out-of-network ATM withdrawal. These fees can quickly accumulate; for example, making a weekly out-of-network withdrawal could cost approximately $248 annually.

Limited Service Availability

Using an out-of-network ATM often comes with functional limitations. While these machines support cash withdrawals, they lack the full range of services available at your bank’s ATMs. Many third-party ATMs do not offer the ability to deposit cash or checks. This is inconvenient if you rely on ATMs for quick deposits.

Out-of-network ATMs also provide limited access to detailed account information. You can check a basic account balance, but typically cannot view specific balances for different accounts, such as savings versus checking, or review recent transaction history. Access to bank-specific features or account management tools tied to your institution’s network is unavailable. These restrictions hinder financial oversight when away from your bank’s designated machines.

Navigating Discrepancies and Support

When a transaction issue arises at an out-of-network ATM, resolving the problem is more involved than with your own bank. If the ATM malfunctions, such as debiting your account without dispensing cash, the dispute resolution process requires coordination between multiple parties. You need to contact both your own bank and the financial institution that owns the ATM.

This dual communication extends the time to investigate and resolve the discrepancy. Investigations can take several weeks. To facilitate the process, record the ATM’s location, the exact time of the transaction, and retain any receipts. Identifying the specific ATM owner for reporting can sometimes present an additional challenge.