An ATM provides quick and easy access to cash from a checking account. However, withdrawal fees from an out-of-network ATM can add up quickly, making it important for consumers to find cost-free ways to access their funds.
Let’s look at ways you may be able to avoid ATM fees. First, let’s start by learning what ATM fees are and when to expect them.
What are ATM fees?
Banks charge an ATM fee when you use an ATM outside their network to make a withdrawal. There are two types of fees to contend with:
Surcharge: You’ll pay a small fee to the owner of the ATM.
Out-of-network fee: Your own bank will charge you a fee for withdrawing from an out-of-network ATM.
The good news is that you can take measures to avoid these fees. Here are a few steps to consider.
Learn about your bank’s ATM network
Most banks and credit unions have a network of ATMs that accountholders can withdraw from at no cost. Check your bank’s website or mobile app for in-network ATMs close to your location.
You can also look for partnerships between your bank and other financial institutions that waive fees for shared network ATMs. Most traditional banks have free ATMs at their branches and other selected locations. However, some banks and credit unions may offer access to a large network of free ATMs across the country. Find a few in-network ATMs near your home, office, and preferred grocery stores or shopping destinations so you always know where to go.
Use cash back where you can
Another simple way to access quick cash is to get cash back at your nearest grocery store. Some grocery stores provide cash back when you pay with a debit card or prepaid card. Typically, you won’t be charged any additional fees for this service. Many popular grocery chains, big box stores and pharmacies provide a cash back option. However, there may be limits to how much cash you can withdraw this way. Note that you’ll need a debit card to get cash back. Most stores won’t accept credit cards or gift cards.
Look for banks that reimburse ATM fees
Many banks and credit unions reimburse ATM fees for eligible accounts. The rules and limits for reimbursement may vary based on the bank’s policy. Some may offer unlimited ATM fee reimbursements; others may offer reimbursements up to a certain monthly or annual limit.
Additionally, some banks may require accountholders to apply for reimbursement, while others may offer automatic reimbursements. Contact your bank to find out if you can upgrade to an account that offers ATM fee reimbursements or consider switching to another bank or credit union.
Rely on payment apps when you can
Digital payment apps have made it possible to make payments online in just a few seconds. Whether you’re paying a friend/family member or a business, payment apps make it easier to go cashless.
Peer-to-peer payment apps are usually free for consumers, but different places may accept different payment apps. Learn about the payment systems accepted at the stores or restaurants you frequent and read the terms of service carefully before signing up. Remember to find out if there are any surcharges associated with digital payments.
The bottom line
Simply identifying in-network ATMs in your neighborhood can help you avoid unnecessary ATM fees when you need to withdraw cash urgently. Payments apps and cash back at grocery stores can also come in handy if these options are available. Here are some other tips to consider if you often find yourself in need of cash:
If you must withdraw from an out-of-network ATM, consider withdrawing more than you need (at present) so you have cash on hand the next time you need it.
Keeping some emergency cash in your wallet can help you when you need it most.
Consider getting a credit card that offers interest-free cash advances. These can be hard to come by, but they can be a useful solution for some.
Disclaimer: Article content is intended for information only. It may not reflect the publisher nor employees’ views. Consult a financial professional before making financial decisions. Publishers or platforms may be compensated for access to third party websites.
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