The push against using cash for consumer transactions could accelerate after a new report shows the cost of using out-of-network ATMs is rising significantly.
According to Bankrate’s most recent Checking Account and ATM Fee Study, the average ATM fee in 2025 has risen to a “record high” of $4.86. That’s up from an already high ATM average of $4.77 in 2024.
Typically, ATM fees are split into two categories:
- A consumer’s own ATM-linked bank, which charges its customers an average of $3.22 to withdraw cash from a terminal.
- A separate average fee of $1.64, charged by the user's bank for taking cash out of an out-of-network ATM.
"Traditional ATMs come with costly fees,” said Kimberly Rosales, a fintech entrepreneur at ChainMyne, a global crypto platform, and a frequent traveler. “I'm Canadian, and when I brought Canadian dollars to Costa Rica, I soon discovered that there was nowhere to exchange them locally, not even at the bank.”
The sole alternative was to use the airport's foreign exchange bureau, which first converts Canadian dollars to U.S. dollars before converting U.S. dollars to Colones (the local currency of Costa Rica). “It's so absurd that I wind up losing over half my cash in the process,” Rosales said in an email.
The report also notes that as ATMs become less frequently used, associated fees are likely to rise. That sentiment is supported by a recent Morning Consult study that shows only 5 percent of Americans use ATMs to manage their bank accounts.
That scenario is making banks become more competitive and more amenable to working with customers to alleviate ATM fee headaches.
“Consumers can most easily avoid these fees by banking with institutions offering wide ATM networks or reimbursing out-of-network ATM charges,” said Stephen Kates, a Bankrate financial analyst, in a statement. “An increasing number of online banks and brokerages now reimburse ATM fees, regardless of the machine used.”
Nationally, ATM fees are highest in high-volume urban areas like Atlanta, Phoenix, and San Diego, all of which have average ATM fees of over $5.00 per transaction.
Tips on Curbing ATM Fees
For consumers who regularly rely on ATMs, the trick is to have a plan when using ATMs and to stick to it. These tips should keep ATM fees lower regularly.
Always use your bank’s ATM or its ATM partners to access cash.
As the Bankrate study shows, ATM fees can be slashed by 35 percent or more by staying with your bank’s ATM network.
Ask your bank about ATM fee reimbursements.
Increasingly, banks are more accommodating about outside-of-network ATM reimbursements for regular customers. You may have to ask your bank for the fee pullback.
More cash and fewer ATM visits.
Try planning ahead with your ATM use by taking larger amounts of cash out in one or two visits, rather than spreading withdrawals out over more ATM trips.
Or, you could get more creative and add cryptos to your liquid asset accounts and save money.
“Crypto ATMs are fascinating for this reason,” Rosales said. “They're beginning to expand, and more of them being able to swap currencies would be fantastic. I could simply use my Bitcoin and withdraw cash for one or two percent, which is a fraction of what existing methods require, rather than paying layers of fees to banks and exchange bureaus."
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.