ATM Fees Continue to Rise – Here’s How to Avoid Them

Standing outside an ATM at two in the morning, Thomas Knapp had no idea fees for the money machine had vaulted 37% over the last decade. All he knew was that the Jeep Commander parked behind the fence was his, and the towing company wanted $105 — CASH ONLY!

The ATM in front of him charged 15% on transactions. He looked around the desolate tow lot. The chances of finding a Wells Fargo ATM out here were slim. He was trapped.

“I never carry that kind of cash around,” Knapp said. “It was shocking to have to pay that kind of fee for my own money. It felt like they were taking advantage of me.”

Knapp just wanted to see one of his favorite local bands in concert, but the costs were adding up. Between the cab to the towing lot ($28), the fine to retrieve his car ($105), and the dreadful ATM fees ($16), it started to feel like he should have seen Springsteen at Madison Square Garden.

Thomas bit the bullet, paid the fees, and sulked all the way home.

In 2025, the average fee for an out‑of‑network ATM withdrawal in the U.S. has climbed to approximately $4.86. That includes an average surcharge of $3.23 charged by the ATM operator and $1.62 from your bank for using a machine outside its network. That is up from about $4.73 in 2023, marking the fourth straight year of record-high fees.

Looking ahead, analysts expect that average fees will continue climbing unless cash usage pivots back upward or banks dramatically alter fee structures. With ATM usage still declining and operational costs rising, forecasts suggest we could soon be paying $5 or more per withdrawal in many metro areas.

Why Are ATM Fees Rising?

Banks are under constant pressure to find new revenue streams and ATM fees are an easy target. America’s three largest banks, JPMorgan Chase, Bank of America, and Wells Fargo, pulled in more than $6 billion from ATM and overdraft fees alone, according to data from SNL Financial and CNNMoney. That works out to roughly $25 in profit from every adult in the U.S. just from fees.

This rise is largely driven by costly ATM infrastructure like maintenance, security, cash replenishment, and compliance. As consumers increasingly rely on cards and mobile wallets, fewer people are using cash, so operators need to charge more per transaction to keep machines profitable.

If you’re still relying on cash occasionally, now is the time to understand what you’re being charged and how to avoid those fees. With a few smart habits, you can easily cut ATM fees out of your budget completely.

8 Ways to Avoid ATM Fees

ATM fees might seem small at the moment, but over time they can quietly drain your wallet, especially if you’re withdrawing cash frequently. The good news is these fees are almost always avoidable with a little planning and a few smart habits.

Keep Cash on Hand

Carrying a little cash can save you a lot of cash in the long run. Try to keep a reasonable amount on you for everyday spending, and stash the rest somewhere secure, like a safe or lockbox at home. This way, you’re prepared for emergencies or situations where card payments aren’t accepted. By having cash ready when you need it, you can skip those last-minute trips to the ATM and avoid unnecessary fees altogether.

Use In-Network ATMs

The easiest way to dodge ATM fees is by sticking to your bank’s network. Most banks and credit unions won’t charge you for using their ATMs, and many offer mobile apps or websites that help you locate in-network machines nearby. Taking a minute before you head out to find the closest in-network ATM can save you several dollars in fees, especially if you withdraw regularly.

Switch to a Bank That Eliminates or Refunds ATM Fees

If your current bank hits you with fees every time you use an ATM, consider switching. Some banks offer premium accounts that let you use any ATM without fees. Others offer accounts that automatically refund out-of-network ATM fees, so you get your money back after the fact. If this sounds like a better fit for your lifestyle, do some research and open a new bank account that suits your needs without surprising fees.

Download Google Wallet, Venmo, or Cash App

Instead of going out of your way to withdraw cash, try using a virtual wallet app like Google Wallet, Venmo, or Cash App. These tools let you send money instantly to friends or family with just a few taps, no cash or ATM required. It’s a great way to split a bill or pay someone back quickly, especially if you’re out with friends or want to avoid carrying cash. Plus, most of these apps don’t charge fees for standard transfers, making them a convenient and economic alternative.

Make a Withdrawal at the Bank

If you’re near a branch of your bank, consider going inside to withdraw cash directly from a teller. It’s free, secure, and you might even get smaller bills if you need them for specific purchases. While it’s not as fast as using an ATM, visiting the bank can save you from those surprise fees and gives you a chance to ask questions or get assistance if needed. Planning your withdrawals this way can be a great habit, especially for larger cash needs.

Get Cash Back at the Grocery Store

When you’re already buying groceries or essentials, ask for cash back at checkout. Most stores let you take out a small amount with your debit card purchase, and it’s usually fee-free. This convenient option saves you a separate trip to the ATM and helps you avoid extra charges just for accessing your own money. Plus, it’s quick, easy, and works wherever you shop regularly, making it a smart move for everyday cash needs.

Don’t Withdraw More Than You Have

Be careful not to take out more than what’s available in your account. Overdrafting can trigger extra fees that go beyond standard ATM charges. To avoid debt, keep a close eye on your balance through your bank’s app or online portal, and always double-check before making a withdrawal.

Make Larger ATM Withdrawals

If you know you’ll need cash more than once, consider withdrawing a larger amount all at once. ATM fees are typically the same whether you take out $20 or $200, so getting more cash in one go means you’ll pay fewer fees over time. Just be sure to store your cash safely and budget it wisely so you don’t run through it too quickly. This way, you get the convenience of cash without the frustration of multiple fees piling up.

Types of ATM Fees

ATM fees break down into two categories: non-customer withdrawal fees and out-of-network withdrawal fees.

Non-Customer Withdrawal Fees

When you use an ATM that belongs to a bank you don’t have an account with, you’ll likely be charged a non-customer withdrawal fee. This fee is set by the bank that owns the ATM and is their way of charging for access to their machine. You’ll usually see a warning on the screen before the transaction goes through, giving you the chance to cancel if you don’t want to pay.

Out-of-Network Fees

Out-of-network fees come from your own bank when you use an ATM that isn’t part of its approved network. Even if the ATM itself charges you, your bank might tack on an additional fee just for going outside their system. These fees can stack up quickly, so it’s smart to check which ATMs are in your bank’s network before making a withdrawal.

The Bottom Line

ATM fees have steadily increased over the years, turning simple cash withdrawals into a costly habit. Whether it’s a $3 surcharge at a gas station ATM or a double-hit from both your bank and the ATM operator, those fees can add up quickly, especially if you’re withdrawing often. The good news is that most of these charges are avoidable with a little planning.

Simple habits like using in-network ATMs, carrying a small amount of cash, or switching to a bank that reimburses fees can save you hundreds each year. Digital wallets like Venmo or Google Wallet make it even easier to skip the ATM altogether. Even asking for cash back while shopping can help you dodge unnecessary fees and make smarter use of your money.

Avoiding ATM fees is just one piece of the bigger picture when it comes to managing your finances. By cutting out these avoidable expenses and staying intentional with your spending, it becomes much easier to stick to your budget and stay on track financially.