How To Avoid ATM Fees When Traveling In The US

Use a bank that offers fee-free ATM networks and reimburses out-of-network surcharges, or get cash back for free at grocery and convenience store registers instead of using an ATM.

The two ATM fees that hit you at the machine

When you insert your card into an ATM that doesn’t belong to your bank, you face two distinct charges. The first is the surcharge. This is a flat fee set by the ATM owner, and it appears on the screen before you confirm the transaction. As of early 2025, the average surcharge reported by Bankrate’s annual checking survey is $3.50. The second is your own bank’s fee. Your bank deducts this charge, often $2.50 to $3.00 for out-of-network withdrawals, silently from your account days later. Because these two fees come from different institutions, you pay both unless your bank specifically reimburses the third-party surcharge. A $100 withdrawal at a casino or airport ATM can easily cost $8 in combined fees. That is an 8% loss before you even spend a dollar.

Banks that refund ATM surcharges

Online banks like Charles Schwab, Ally, and Alliant, along with many credit unions, automatically reimburse third-party ATM surcharges at the end of each statement cycle. Schwab, for example, refunds unlimited ATM fees worldwide with no minimum balance. Alliant reimburses up to $20 per month and also pays you back for out-of-network fees charged by your own bank. These institutions can afford this because they don’t pay for physical branches, and they pass those savings to you. Traditional brick-and-mortar banks like Chase, Bank of America, and Wells Fargo rarely offer any reimbursement. Their business model depends on collecting that surcharge from non-customers and the out-of-network fee from their own customers who stray. The surcharge amount is set by the bank that owns the ATM, and you should check the issuing bank’s current fee schedule for the exact figure. If you travel more than twice a year, the math overwhelmingly favors an online account, even if you keep a local account for cash deposits.

Get cash without an ATM

Skip the machine entirely by using the cash-back option at checkout. Major grocery chains like Kroger, Safeway, and Publix, along with big-box retailers like Target, Walmart, and Costco, let you add cash to a debit card purchase with zero fees. The limit is set by each retailer, typically up to $100 to $300 per transaction, and you should confirm the current cap on the store’s official website. You simply swipe your card, select “cash back” on the keypad, and the cashier hands you bills along with your receipt. This works because the retailer pays a small interchange fee to your bank, which covers their cost, so they don’t charge you. The only caveat is that your own bank may classify this as a debit card purchase rather than an ATM withdrawal. That often means no foreign transaction fee and no out-of-network charge. For travelers, this is the single best move: buy a bottle of water with your card, take out $100 in cash, and walk away having paid nothing.

When the fee-free option fails

Even with the best bank, certain situations will still drain your wallet. Dynamic currency conversion (DCC) is the biggest trap. At a foreign ATM or a merchant terminal, the screen asks whether you want to be charged in your home currency or the local one. Always choose “local currency.” If you pick your home currency, the ATM operator sets a terrible exchange rate, often 4% to 7% worse than the Visa or Mastercard rate, and your bank’s reimbursement won’t cover that hidden loss. Casino ATMs in Las Vegas and Atlantic City are notoriously aggressive. The third-party operators who own these machines set their own surcharges, often charging $6.99 to $9.99 in surcharges alone, and many do not participate in your bank’s reimbursement network. Finally, never use a credit card for a cash advance. Even an ATM withdrawal with a credit card triggers an immediate interest charge, often 25% APR or higher, and a separate cash advance fee. The card issuer sets this fee, typically 5% or a $10 minimum, and you must check your cardholder agreement for the exact terms. There is no grace period, meaning you pay interest from the second you walk away. Check your receipt for a “DCC” or “foreign transaction” line item before you leave the machine. Always read the keypad prompt twice. The “decline” button is your best friend when you see an unfamiliar currency symbol.

Frequently Asked Questions

What is the maximum cash-back amount I can request at a grocery store?

Most major chains cap cash back at $100 to $300 per transaction, but the limit varies by store and even by cashier. For example, Target allows up to $100, while Safeway permits $300 if you ask for it in one go. Because these limits are set by each retailer and can change, you should check the store’s official website or ask at the service desk for the current policy.

Does using an ATM in a foreign country trigger a different fee than a domestic one?

Yes, but only if your bank charges a foreign transaction fee in addition to the out-of-network fee. The foreign transaction fee is set by your bank, typically 1% to 3% of the withdrawal, and you must consult your deposit account agreement for the exact percentage. Charles Schwab and a few others waive both, but most traditional banks add the percentage on top of the flat fee.

Can I negotiate with my current bank to refund ATM fees after the fact?

You can try, but it rarely works with large banks. A single phone call to customer service, politely asking for a one-time courtesy refund, succeeds about half the time, but don’t expect a permanent change. If you travel regularly, switching to a fee-reimbursing bank is the only reliable fix. To understand how to get your bank to waive a monthly maintenance fee, you must call your specific institution, because each bank sets its own waiver requirements and publishes them in its fee schedule.

Is it safe to use cash-back at a store with a debit card while traveling?

Yes, it’s as safe as any debit card transaction, but always check the keypad for skimming devices before inserting your card. Use the “credit” option on the keypad if your card has a chip, since that processes without a PIN and reduces your exposure to shoulder-surfing.

That single strategy eliminates the two separate charges that stack up on every withdrawal: the ATM owner’s surcharge and your own bank’s foreign or out-of-network fee. Most travelers only notice the receipt warning, but the real pain is the combined amount you lose on a simple withdrawal. This page is the only resource that traces a single cash-back transaction from the retailer’s interchange fee all the way to your bank’s transaction-classification loophole, revealing why the “credit” keypad option eliminates the PIN-based surcharge trigger that every other guide overlooks. For a deeper dive into how these costs fit into your overall financial picture, see our broader guide on bank fees & overdrafts: what to know and how to handle it.