An out-of-network ATM withdrawal usually carries two separate fees, charged by two different companies. Here is what each one is, who keeps the money, and why the fee is higher in a nightclub than a supermarket.
An ATM surcharge is the fee the ATM’s owner charges for using the machine. It appears on screen before you commit, and you can cancel without paying it. It is separate from the out-of-network fee your own bank may add afterward. In Bankrate’s 2025 survey, the two averaged $3.22 and $1.64, for a total of $4.86.
Most articles on ATM fees blur those two fees together. They are charged by different companies, disclosed in different places, and kept by different people. This guide separates them, follows the money, and explains why the number on the screen varies as much as it does.
The surcharge is set and collected by the ATM’s owner and shown on the ATM screen. The out-of-network fee, often called a foreign ATM fee, is charged by your own bank for using a machine outside its network, and it only appears later on your statement. You pay both, but each goes to a different company.
The surcharge is added to the withdrawal itself. Take out $60 at a machine with a $3.00 surcharge and your account is debited $63. The out-of-network fee arrives separately, set by your bank’s account terms, and the ATM owner never sees any of it.
Bankrate has tracked both for years. Its 2025 study put the average surcharge at a record $3.22, up from $3.19, and the average out-of-network fee at $1.64, up from $1.58 and the highest since 2018. Total cost varied by city: Atlanta topped the list at $5.37, and Boston was lowest at $4.37.
One caution on those numbers: Bankrate surveys banks and the fees they charge, so its surcharge average reflects bank-owned ATMs. Independent machines in retail locations set their own fees, which often sit near that figure but vary widely with the venue.
The ATM’s owner, less two costs. The venue hosting the machine is usually paid a flat amount per transaction, commonly $0.25 to $0.75, and the processor that routes the transaction charges a per-transaction fee. The rest is the owner’s gross margin, before cash loading, supplies, and their own time.
At a machine with a $3.00 surcharge, a $0.50 venue share, and a $0.25 processing fee, the owner keeps $2.25 from each withdrawal. If the venue owns the machine, it keeps the venue share too. The table below follows every dollar.
| Fee component | Who charges it | Who keeps it | Typical amount | |
|---|---|---|---|---|
| Surcharge | The ATM’s owner, disclosed on screen | The owner, after the venue share and processing | $3.22 average at bank ATMs (Bankrate 2025) | |
| Out-of-network fee | The cardholder’s own bank | The cardholder’s bank | $1.64 average (Bankrate 2025) | |
| Venue share | Paid by the owner out of the surcharge | The business hosting the machine | $0.25–$0.75 flat per transaction; about $1.00 at dispensaries and casinos | |
| Processing fee | The ATM processor, billed to the owner | The processor | Per transaction; Blueprint charges $0.15–$0.25 | |
| Interchange | Paid between the card networks and banks | Varies by program; some pass a share to the owner, many do not | Ask your processor; never plan on it |
Because the ATM’s owner sets it, and what the market bears depends on how far the customer is from the next option. A supermarket ATM next to a bank branch competes with a free withdrawal down the street. A nightclub ATM at midnight competes with nothing. The fee follows distance to the alternative more than it follows cost.
That is also why it is not simply greed. The costs of running a machine — the cash sitting in it, the loading trips, the processing, the venue’s share — are similar everywhere, but transaction counts vary hugely. A quiet location has to charge more per withdrawal to make the machine worth keeping, and a location with no competition can charge more without losing customers.
Bankrate’s city figures show the same effect at a larger scale: in 2025 the total cost of an out-of-network withdrawal ran a full dollar higher in Atlanta than in Boston, $5.37 against $4.37.
For an owner, the practical limit is the customer’s tolerance. Push the fee well above what nearby machines charge and customers walk to the next one, or ask the cashier for cash back instead. Most retail operators settle near the prevailing local rate, and the ones who win do it through location and volume, not through the fee.
At a typical retail location doing about 200 withdrawals a month with a $3.00 surcharge, the machine collects $600. After a $0.50 venue share and $0.25 processing on each transaction, the owner keeps about $450, and roughly $438 after supplies and connectivity. The surcharge is flat per withdrawal, so it is the same on $20 as on $200.
Here is where that $600 goes, line by line:
Two things are missing from that list on purpose. The cash inside the machine is not a cost — it is working capital that comes back at every settlement. And interchange, the small payment that moves between banks on each transaction, is left out because whether any of it reaches the owner depends on the processing program. Some pass a share through and many do not; nobody should build a plan around it.
The same arithmetic explains why volume matters more than the fee. Raising the surcharge by $0.25 at 200 transactions adds $50 a month. Moving the machine to a location with 100 more transactions a month adds about $225.
A sequence that works for a new placement:
Use your own bank’s ATMs or a surcharge-free network your bank belongs to, such as Allpoint or MoneyPass. Ask for cash back with a debit purchase at a store. Or use an account that reimburses ATM fees, which some online banks and credit unions offer. Each avoids one or both fees.
If you do use an out-of-network machine, take out enough cash to cover what you need rather than making several small withdrawals, since both fees apply per transaction.
Their amount generally is not, but their disclosure is. Under 12 CFR 1005.16, the ATM must show the fee on screen or on paper before the customer commits and let them cancel without charge. The fee sticker that used to be required on the machine itself was eliminated in 2012.
The details are in ATM Compliance Without the Scare Tactics. For how the transaction itself moves through the network, see How ATM Processing Works. If you are thinking about the other side of the counter — owning a machine and setting the fee yourself — our pricing page lists exactly what Blueprint charges per transaction.
Bankrate’s 2025 survey put the average surcharge at $3.22, a record high for the fourth straight year, with the cardholder’s own bank adding an average $1.64 out-of-network fee for a total of $4.86. Bankrate surveys banks, so the surcharge figure reflects bank-owned ATMs; independent retail machines set their own fees, and they vary widely by venue.
No. The surcharge is charged by the ATM’s owner and shown on the screen before you commit. The out-of-network fee is charged by your own bank for using a machine outside its network, and it shows up later on your statement. They are separate charges from separate companies, and you can pay both on one withdrawal.
The ATM’s owner keeps the surcharge after paying the venue a flat share per transaction — commonly $0.25 to $0.75 — and paying the processor its per-transaction fee. The out-of-network fee goes entirely to the cardholder’s own bank. If the business hosting the machine also owns it, it keeps the whole surcharge less processing.
The surcharge is disclosed before you commit and can be avoided by cancelling, so it is not refunded by the ATM’s owner. Some banks, particularly online banks and credit unions, reimburse ATM fees on their accounts, sometimes up to a monthly limit. Check your own account terms.
There is generally no federal cap on the amount. Federal law regulates disclosure: under Regulation E, the fee must be shown on screen or on paper before the customer commits, with the option to cancel at no charge. In practice, the limit is competition — customers walk to the next machine or ask for cash back.