ATM usage fees

Overview

ATM usage fees are what 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. There is usually a higher fee for the use of White-label ATMs rather than bank-owned ATMs. Two types of consumer charges exist: the surcharge, and foreign fee. The surcharge fee may be imposed by the ATM owner (the bank or Independent ATM deployer) and will be charged to the consumer using the machine. The foreign or transaction fee is a fee charged by the card issuer (financial institution, stored value provider) to the consumer for conducting a transaction outside of their network of machines, in the case of a financial institution.

Australia

Several ATM networks are operated in Australia; the largest are: Commonwealth Bank / Bankwest network with 3,400 machines, Westpac / St George Bank / BankSA / Bank of Melbourne with 2,800 machines, ANZ with 2,300 machines, the rediATM network with 1,800 machines, and National Australia Bank with 900 machines, The ATMs of CommBank, Westpac, ANZ, NAB and others are free to use. ING Australia, which does not operate its ATMs nor have a branch network, reimburses any ATM fees of customers who deposit A$1,000 per month as part of a loyalty program. Australians made more than 250 million ATM withdrawals from banks other than their own in 2016. In September 2017, the "Big Four" banks announced they would abolish non-customer ATM usage fees. The Commonwealth Bank was the first to make the announcement, shortly followed by the three other major banks: ANZ, NAB and Westpac. The rediATM network charges up to A$2.50 for domestic cards and A$5.00 for international cards.

Brazil

In Brazil, banks such as Caixa Econômica Federal, Banco do Brasil, Banco Bradesco, Banco Itaú and Banco Santander operate their own nationwide ATM networks. These ATMs can be found in many locations such as the bank branch itself, kiosks spread throughout a city or even supermarkets, gas stations, shopping malls and post offices, making it very convenient for the customer to make withdrawals and check balances without incurring any fees. There are also no denial fees (i.e. when trying to withdraw more money than what's available in an account), as Brazilian businesses cannot charge for services not rendered. However, fees are assessed if there is excessive usage of the ATMs (i.e. one makes more withdrawals than what's allowed by their monthly maintenance fee). Fees and limits can be checked at the Brazilian Banking Federation (Febraban) website. Brazilian banks have several partnerships in place in order to extend their coverage:

Correspondente bancário (banking agent) - a partnership with an establishment, who then use a small wireless ATM (much like a wireless EFTPOS) to process transactions for the bank, such as payments, deposits, and withdrawals. The use of a banking agent typically does not generate any fees. However, fees are assessed if there is excessive usage of the ATMs (i.e. one makes more operations than what's allowed by their monthly maintenance fee). Interbank network - there are ATM interbank networks such as Banco24Horas that not generate charges fees for use. However, fees are assessed if there is excessive usage of the ATMs (i.e. one makes more operations than what's allowed by their monthly maintenance fee). Cash withdrawal with a Visa debit card - Brazilian acquirer Cielo (formerly known as VisaNet) offers Visa debit card holders an option to withdraw a small amount of cash (up to R$100, approx. US$30) when paying for merchandise at any Visa-accepting store. Store owners then hand over the money to the customer at the checkout. While the purchase itself generates fees for the business (like any other credit or debit card transaction), the money withdrawal does not and is reimbursed in full.

Canada

A short description of the fee structure one experiences while using Canadian ATMs can be found at the Interac website, while the Financial Consumer Agency of Canada maintains a chart of the fees typically charged for use of ATMs in Canada. There are two main ATM networks in Canada:

Interac ATMs - Most Canadian financial institutions are members of Interac, a multi-bank ATM network founded by RBC, CIBC, Scotiabank, TD, and Desjardins Group in 1984. Before the presence of white-label ATMs, most Canadian customers were only charged the standard Interac network transaction fee when a customer was using an ATM not provided by the bank that held their account. As the Interac network was opened up to more independent sales organizations (ISOs) and the potential for additional revenue from service fees was made available, most banks elected to impose the service fee in addition to the revenue that was generated from the Interac fee. The Exchange is a multi-bank ATM network. It originated in the northwestern United States before expanding to Canada in 1983. As of 2017, many Canadian credit unions, along with The Alterna Bank, Alterna Savings, Canadian Western Bank, Citibank, HSBC Bank Canada, Manulife Bank of Canada, First Nations Bank of Canada and National Bank provide surcharge-free ATM access to members of other participating financial institutions through the network.

Colombia

Fees and withdrawal amounts differ by network (i.e. Mastercard or Visa) and by the issuing card. Davividenda gets the most reports for having zero fees for withdrawals. BBVA has low withdrawal limits.

United States

In 1988, Valley Bank of Nevada introduced a separate transaction fee to "foreign cardholders" (meaning holders of ATM cards not issued by Valley Bank) for withdrawals at Valley Bank ATMs, particularly those located in/near Las Vegas casinos. Eventually, various regional ATM networks, and ultimately the national networks, Plus and Cirrus, permitted ATM surcharging. Before 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 $3.00, 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 (for using a "foreign" ATM) and the ATM owner (the so-called "surcharge") total withdrawal fees could potentially reach $11. Independent sales organizations ("ISO"s) are the driving force in ATM deployment in the U.S. today, representing over 60% of the 396,000 ATMs nationwide. Some have expressed concerns that the U.S. market is becoming too saturated, spreading the resulting fee pool too thin, which may result in a future net decrease in the number of machines. Other media reports indicate that growth in ATM usage has decreased, possibly in relation to the number of fees imposed by banks. According to Bank Call Reports, JPMorgan Chase, Bank of America and Wells Fargo earned more than $1.1 billion in 2016 from ATM fees. The average fee for using an out-of-network ATM has reached $4.57 in 2016 and this is the 10th straight year of increases, according to Bankrate. By 2019, the average total out-of-network ATM fees had increased to $4.72. Another type of charge a customer may face is a "Denial Fee", where a customer is charged a fee for attempting to withdraw more money than they are either allowed through their daily withdrawal limit or by having insufficient funds in their account.

Bangladesh

Bangladesh has multiple ATM networks. Dutch-Bangla Bank has the largest network and the most member banks. If one has a Bank debit card, customers are charged BDT 200 yearly for ATM network use. Dutch-Bangla Bank has separate agreements with local and international banks. Under these agreements, Dutch-Bangla Bank charges member banks BDT 10 (US$0.092) per transaction. Because this is a low amount, member banks often add an extra profit margin.

Hong Kong

There are three ATM networks in Hong Kong: ETC (HSBC and Hang Seng Bank only), JETCO (all remaining banks) and ÆON. ATM use is free of charge when the card is issued by its respective network. Otherwise, HKD$0–30 is paid for service charges for out-of-network cards.

India

In 2014, the Reserve Bank of India (RBI), India's central bank and financial regulator, issued a directive on request from large ATM network and card-issuing banks which expressed concern about the growing cost of ATM network operations, large cash outflows, and other problems. In fact, customers of the same bank withdrawing more than five times in month were sought to be charged. Present directive reduces Free transactions per month from five to three with revised charges of INR 20 plus taxes levied per transaction as ATM transaction fee. The number of ATMs, which stood at a little over 27,000 as of the end of March 2007, has increased to over 160,000 across the country by the end of March 2014. During the same period, POS infrastructure has increased from 330,000 to 1,065,000 terminals. Meanwhile, White Label ATMs (WLAs) have also been introduced in the country with the objective of increasing the ATM density and also building the rural and semi-urban ATM infrastructure. In 2007, the Reserve Bank of India (RBI), the country's central bank, had issued a directive to all commercial banks to freeze ATM charges and, with effect from 1 April 2009, abolish ATM service charges altogether. Since 2009, customers of any licensed bank are able to use the ATMs of other banks without paying a service charge. Earlier, banks charged between ₹ 10 and ₹ 35 per reciprocal transaction. A person holding a card of other banks can withdraw amount from other bank ATMs but the number of transactions is limited to 5; i.e., on the 6th transaction the person is charged up to ₹ 21. However, banks can still surcharge for items such as credit card ATM cash advances and at foreign ATMs. In addition, RBI imposes significant foreign exchange restrictions on the use of Indian debit VISA/Mastercard abroad. For example, Indian debit VISA cards are routinely marked "Valid in India and Nepal only" due to the country's restrictive foreign exchange reserve policy.

Indonesia

In Indonesia, banks generally do not charge a fee for ATM usage. However, when an ATM card is used outside the home ATM network, service charge will apply.

Iran

The Shetab Banking System is an electronic banking clearance and automated payments system used in Iran. The system was introduced in 2002 with the intention of creating a uniform backbone for the Iranian banking system to handle ATM, POS and other card-based transactions. There are no charges for money withdrawal in this network. Transferring money between two accounts in a same bank is mostly free (for some banks may incur a small charge of IRR 250) but between different banks costs from 5,000 to 39,600 (for amounts of 10,000 to 150,000,000) for instant transactions, IRR 2,000 to 25,000 for "Paya" transactions, and checking the account balance costs IRR 1,200 for other banks' cards. Other services are currently free.

Japan

In Japan, usually any ATM offers free withdrawal for its respective account holders. Business weekday from morning to late evening means a free transaction (withdrawal, deposit, balance statements, sometimes bank transfers). Beyond this time limit or even on weekends / public holidays, the ATM charges fees to make a transaction.