An ATM fee is a charge you pay for withdrawing cash from an automated teller machine, and you can actually get hit with two separate fees in a single transaction. The average total cost of using an out-of-network ATM is $4.86, according to Bankrate’s 2025 study. That number has climbed to a record high for the third straight year, making it worth understanding exactly where these charges come from and how to sidestep them.
Two Fees, One Withdrawal
When you use an ATM that doesn’t belong to your bank’s network, two different parties can charge you. The first is the ATM operator fee, sometimes called a surcharge. This is set by whoever owns the machine, whether that’s another bank, a convenience store, a gas station, or a private company. The average surcharge is $3.22 per transaction, and you’ll see it displayed on the ATM screen before you confirm the withdrawal. You can cancel at that point without being charged.
The second charge is your own bank’s out-of-network fee. Your bank adds this to your account for using a machine outside its approved network. The average is $1.64 per transaction. Unlike the surcharge, this fee won’t appear on the ATM screen. It shows up later on your bank statement. Together, these two fees combine into that $4.86 average, meaning a $40 cash withdrawal effectively costs you nearly $45.
If you use your own bank’s ATM or one inside its network, you typically pay nothing. The fees kick in only when you go out of network.
International ATM Fees
Withdrawing cash overseas adds another layer of cost. On top of any surcharge from the foreign ATM operator and your bank’s out-of-network fee, most U.S. banks charge a foreign transaction fee of 1% to 3% of the withdrawal amount. On a $200 withdrawal, that’s an extra $2 to $6 just for the currency conversion.
You may also encounter dynamic currency conversion, where the ATM offers to convert your withdrawal into U.S. dollars on the spot. This convenience typically adds around 1% to the transaction and almost always gives you a worse exchange rate than your bank would. When an overseas ATM asks whether you want to be charged in the local currency or U.S. dollars, choosing the local currency usually saves money.
If your bank charges a flat fee per foreign ATM use rather than a percentage, making fewer, larger withdrawals is more cost-effective than pulling out small amounts repeatedly.
How to Avoid or Reduce ATM Fees
The simplest approach is to use ATMs within your bank’s network. Most banks have locator tools on their websites and mobile apps that show nearby in-network machines. Beyond that, several strategies can cut your costs significantly.
Many online banks and credit unions participate in surcharge-free ATM networks that give you access to tens of thousands of machines nationwide without paying the operator’s surcharge. When you pair one of these accounts with a bank that doesn’t charge its own out-of-network fee, ATM withdrawals become free at any participating machine. Some banks go further and reimburse ATM fees up to a monthly cap, effectively making every ATM free regardless of network.
Getting cash back at a store checkout is another option. When you make a purchase with a debit card and enter your PIN, many retailers let you add cash back to the transaction. Grocery stores, pharmacies, and big-box retailers commonly offer this. Maximum amounts typically range from $5 to $50 per transaction, though some grocery chains allow up to $200 or $300. Many retailers provide this for free, but some charge fees. Dollar stores, for instance, charge $1 to $2.50 depending on the amount. Grocery chains may charge 50 cents to 75 cents for amounts under $100 and $3 to $3.50 for larger withdrawals. Even with a small fee, this can be cheaper than an out-of-network ATM, and you’re getting something you need from the store at the same time.
Why ATM Fees Keep Rising
The average ATM surcharge has increased for four consecutive years, hitting that record $3.22. Your bank’s out-of-network fee has also climbed to its highest level in seven years at $1.64. Several forces drive this. Maintaining ATMs costs money: the machines need cash replenishment, software updates, security hardware, and physical upkeep. As fewer people use cash overall, each transaction has to cover a larger share of those fixed costs. ATM operators also know that when you need cash urgently, especially in airports, entertainment venues, or late at night, you’re less likely to walk away over a $3 fee.
Fees on Prepaid and Non-Bank ATMs
If you use a prepaid debit card rather than a bank debit card, ATM fees can be steeper. Many prepaid cards charge their own withdrawal fee on top of whatever the ATM operator charges, and some add a balance inquiry fee just for checking how much is on the card. Read the fee schedule that comes with any prepaid card before relying on it for ATM access.
Privately owned ATMs, the standalone machines you find in bars, small shops, and event venues, tend to charge higher surcharges than bank-operated ATMs. Fees of $4 to $5 or more are common at these locations. Your bank’s out-of-network fee still applies on top of that. If you know you’ll need cash at a concert or festival, withdrawing beforehand from an in-network ATM saves a noticeable amount.