The world of finance is undergoing some significant changes, although they are not always positive. Stopping by an out-of-network ATM to withdraw cash is becoming more expensive than ever before. Average fees have reached a new all-time high of US$4.57, a result of ten straight years of increases. Another push to go cashless, or is something else going on behind the scenes?
Out-of-network ATMs are not all that uncommon, as only half of all teller machines are operated by banks themselves. Convenience stores or other places offering cash withdrawal services through an ATM need to pay for maintenance and operation fees themselves. Additionally, they will also need to provide security and ensure there are enough cash reserves, to begin with.
Cash ATM Withdrawal Fees Become Exuberant
While these are all valid reasons to charge a transaction fee, things are getting out of hand very quickly. Right now, the average out -of-network ATM fee is 9% of the amount being withdrawn. To put this into perspective, withdrawing US$100 from such a device would cost about US$9 in fees. Not the most fun aspect to deal with, but things will not improve anytime soon.