Avoiding ATM Fees

Since you may encounter fees when using certain ATMs, you should familiarize yourself with the types of charges that can occur on ATM transactions. Just like paying a convenience fee to valet park or use tollways, these fees enable you to have the convenience of using an ATM at a variety of locations anytime, day or night.

There are two primary types of fees associated with ATM cash withdrawals. A surcharge, or convenience fee, may be charged by the ATM owner to the cardholder in exchange for using the ATM. This fee is designed to cover the cost of operating, maintaining and supplying the ATM. ATMs are required by law to inform you of this fee, which may appear on the ATM screen before you complete your transaction request, or on a sign on the machine. The amount of the fee will vary.

The second type of ATM fee, known as a “foreign” fee, may be charged to you by your financial institution when you use an ATM that is outside the institution’s ATM network. Unlike surcharges, this charge is not assessed by the machine or its owner and therefore is not advertised at the time and place of the transaction. However, the fee is covered as part of your financial institution’s disclosures to cardholders.

Reduce Fees at the ATM
Not all ATM transactions will be charged both a surcharge and a foreign fee. In fact, many ATM transactions carry no consumer fees at all. There are several ways to reduce or eliminate ATM charges:

• Use your own institution’s ATMs. Today, most financial institutions charge no surcharge or fees on ATM transactions conducted by their cardholders at their ATMs. Check with your bank or credit union to determine which ATMs fall within your network and find out the potential costs, if any, associated with using these machines.



• Take the “cash back” option.  At many retail locations, cardholders can get additional cash with PIN debit purchases without incurring a fee. In many cases, the point-of-sale terminal will automatically ask you if you want cash back before you complete your transaction.



• Understand your institution’s surcharge policies and options.  As the cardholder, it is important for you to be aware of the details of your own financial institution's fee structure to determine the total cost of an ATM transaction. In addition, find out whether your bank or credit union participates in a surcharge-free ATM network or offers surcharge reimbursements.

By working with your financial institution, you can begin to understand when, where and in what circumstances ATM fees may apply to you. And the more you know, the less it will cost you to access your cash.