FINANCE
How much have ATM withdrawal fees increased in 2024? How high can they legally go?
Fees to withdraw cash ahs been creeping up as fewer and fewer people use the old currency system.
ATM withdrawal fees have seen a notable increase in 2024, reaching an average of $4.77 per transaction. This marks a four-cent rise from the previous year and represents the highest average fee since Bankrate began tracking these charges in 1998.
The increase is attributed to two primary fees: one charged by the ATM operator, averaging $3.19, and another from the user’s own bank, typically around $1.58.
Fewer Americans are withdrawing cash, with the number of ATM transactions dropping significantly over the past decade. Approximately 41% of Americans report that none of their purchases in a typical week are made using cash, a notable increase from 29% in 2018 and 24% in 2015. This shift reflects a broader trend towards cashless payments, with only 13% of Americans stating they use cash for most purchases, down from 28% five years ago.
This decline has led banks to raise fees as a means of offsetting lost revenue from decreased usage.
Legal limits on ATM fees
While there are no federal regulations capping ATM fees, banks and ATM operators must disclose any applicable charges before a transaction is completed.
In practice, the limits on how high these fees can go are determined by market competition and consumer tolerance.
As banks continue to increase fees, they risk alienating customers who may seek alternative methods for accessing cash, such as using in-network ATMs or opting for cash-back options during purchases.