ATM usage fees in United States

ATM usage fees are the fees many banks and interbank networks charge for the use of their Automated Teller Machines (ATMs). In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users. Many people oppose these fees because ATMs are actually less costly for banks than withdrawals from human tellers. Two types of consumer charges exist: the surcharge and the foreign fee. The surcharge fee may be imposed by the ATM and will be charged to the consumer using the machine. The foreign fee or transaction fee is a fee charged by the card issuer to the consumer for conducting a transaction outside of their network of machines in the case of a financial institution.

Before surcharging was allowed in 1996, foreign ATM fees averaged $1.01 USD nationally, according to a 2001 report from the US-based State Public Interest Research Group. As banks and third parties realized the profit potential they raised the fees. ATM fees now commonly reach $2.00, and can be as high as $6.00, or even higher in cash-intensive places like bars and casinos. In cases where fees are paid both to the bank and the ATM owner total withdrawal fees could potentially reach $11.

Only some fees charged by ATMs are advertised at the point of transaction. This is more of a cautionary statement, as ATMs are required by law to inform you of the surcharge fees that the machine will charge you. This information may come in the push through menu or it may be on a sticker on the machine. However, the ATM card holder's own bank may charge a "foreign ATM network" fee to the card holder for using an ATM that is not owned and operated by the card holder's own bank. Since this charge is not assessed by the machine or the owner of the machine, it is usually not advertised at the time and place of the transaction. Thus, it becomes the responsibility of the card holder to be aware of the details of their own bank's fee structure, which may also vary from state to state, to determine the total cost of an ATM transaction. In addition, the "foreign ATM network" fee may be different if using an ATM outside the U.S. versus inside the U.S.

A new charge that has come into the marketplace is the "Denial Fee", where a customer is charged a fee for attempting to withdraw more money that they are either allowed through their daily withdrawal limit or by having insufficient funds in their account.

Thus, customers at some banks in the US can avoid ATM fees altogether. Another popular way to avoid paying ATM fees is to make a "cash back" purchase at a retail store: many retailers will allow a customer who is paying with a debit card to withdraw more than the total due the retailer and get back the difference in cash.