What Is the Average Non-Network ATM Fee?
Navigate non-network ATM fees with clarity. Understand their impact on your finances and discover smart strategies to minimize costs.
Non-network ATM fees are charges incurred when an individual uses an automated teller machine (ATM) not directly affiliated with their primary financial institution. Understanding these fees is important for financial planning, as they can accumulate quickly. Being aware of how these fees arise and their typical amounts allows consumers to make informed decisions regarding cash withdrawals.
Understanding Non-Network ATM Fees
When utilizing an ATM outside of one’s bank network, two distinct fees are typically assessed. The first is an ATM owner or operator fee, levied by the entity that owns the ATM. The average ATM owner surcharge currently stands at approximately $3.19.
The second charge is your bank’s foreign transaction fee, applied for using an ATM outside its proprietary network. This fee is separate from the ATM owner’s charge and is imposed by your financial institution for facilitating the out-of-network withdrawal. On average, this fee from your bank can be around $1.58. Combined, the average total non-network ATM fee reached $4.77 this year.
Factors Affecting ATM Fee Amounts
The amount charged for non-network ATM transactions can vary based on several factors. Geographical location often influences fees, with urban areas, tourist destinations, or places with high demand like airports, hotels, and casinos sometimes imposing higher charges.
Differences in ATM operators also play a role, as independent ATM deployers or non-bank entities may have different fee structures compared to traditional bank-owned machines. Your bank’s policies for out-of-network transactions contribute to the overall cost. While cash withdrawals are the most common transactions incurring these fees, some ATMs may also apply charges for balance inquiries or transfers.
How to Determine Fees Before Withdrawal
Federal regulations, specifically the Electronic Fund Transfer Act, mandate that ATM operators disclose their surcharge on the screen. This disclosure must occur before the transaction is finalized, providing an option to cancel if the fee is unacceptable.
Consumers should also consult their bank’s fee schedule to understand any charges for out-of-network ATM use. This information is available on the bank’s website, through their mobile application, or by contacting customer service. Paying attention to any physical notices or disclaimers posted on the ATM itself can provide further insight into applicable fees.
Ways to Reduce or Avoid Non-Network ATM Fees
Several strategies can help minimize or eliminate non-network ATM fees:
Use ATMs within your bank’s designated network, which are typically fee-free. Many banks provide online locators or mobile app features to help identify nearby in-network machines.
Utilize ATMs that are part of partner networks, such as Allpoint, MoneyPass, or CO-OP. Many financial institutions have agreements with these networks, allowing their customers to make fee-free withdrawals at thousands of participating ATMs. Check your bank’s website or debit card for network logos.
Obtain cash back when making a debit card purchase at retail locations like grocery stores or pharmacies. This offers a convenient, often fee-free alternative to ATM withdrawals.
Some financial institutions, particularly online banks, offer accounts that provide unlimited ATM fee reimbursements or do not charge foreign ATM fees, making them suitable for frequent ATM users.
Plan ahead by withdrawing larger amounts of cash less frequently to reduce the total number of transactions subject to fees.