ATM Fees Just Hit a Record High And Some Withdrawals Now Cost More Than $5
For millions of Americans who rely on cash for everyday purchases, withdrawing money from an ATM is becoming increasingly expensive. New data shows that ATM fees have climbed to some of the highest levels ever recorded, with some withdrawals now costing more than $5 once all fees are included.
While ATM fees have been rising for years, recent data suggests the trend is accelerating as banks adjust pricing and independent ATM operators pass higher operating costs on to customers.
Average ATM Fees Are at Historic Levels
According to industry research from Bankrate, the average total cost of withdrawing cash from an out-of-network ATM reached $4.77 in 2024, the highest level recorded since the company began tracking the data.
That total includes two separate fees:
• the fee charged by the ATM owner
• the fee charged by a customer’s own bank for using an out-of-network machine
Source: Bankrate
While the national average is just under $5, many withdrawals cost even more depending on where the ATM is located.
In some cases, particularly at ATMs in airports, casinos, and tourist areas, the combined fees can exceed $5 per withdrawal.
Why ATM Fees Keep Rising
Several factors are contributing to the increase in ATM costs.
First, maintaining ATM machines has become more expensive for banks and operators. Machines require regular maintenance, cash replenishment, security upgrades, and software updates.
Independent ATM operators, which run many machines located in convenience stores and entertainment venues, often set higher fees to cover these costs.
At the same time, banks have reduced the number of branches and ATMs in many areas as more customers move toward digital banking. With fewer machines available, consumers may have fewer free options nearby.
The Two Fees Many People Don’t Realize They’re Paying
One reason ATM withdrawals can become expensive is that customers are often charged two separate fees when they use an out-of-network machine.
The first is the surcharge fee from the ATM operator. This is the fee displayed on the ATM screen before the transaction is completed.
The second is the out-of-network fee charged by the customer’s bank.
According to Bankrate’s research, the average surcharge fee alone is about $3.19, while banks often add an additional $1.50 to $2.50 for using an ATM outside their network.
When those charges are combined, the total cost can quickly approach or exceed $5.
Where ATM Fees Are Often Highest
Not all ATM locations charge the same fees.
Machines located in high-traffic areas often charge the most because operators know customers may have limited alternatives nearby.
Some of the locations where higher fees are common include:
• airports
• hotels
• casinos
• nightlife districts
• convenience stores
In these locations, operators sometimes set higher surcharge fees because the machines handle smaller but frequent transactions.
How Consumers Can Avoid High ATM Fees
Financial experts say there are several ways consumers can reduce or avoid ATM charges.
One of the easiest options is using ATMs within a bank’s own network, which typically do not charge withdrawal fees.
Many banks also partner with large ATM networks that allow customers to withdraw money without surcharges at thousands of machines nationwide.
Another option is withdrawing cash when making a purchase at grocery stores or large retailers that offer cash back at checkout, which usually does not involve additional fees.
Some online banks also reimburse ATM fees each month, though customers may still have to pay the surcharge initially.
Why Cash Access Is Still Important
Even as digital payments become more common, cash remains an important payment method for many Americans.
Small businesses, service workers, and people managing tight budgets often rely on cash withdrawals for everyday spending.
As ATM fees continue to rise, however, the cost of accessing that cash is becoming another expense many households have to factor into their budgets.
For consumers who withdraw cash frequently, choosing the right bank or ATM network can make a noticeable difference in how much they pay over the course of a year.
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