ATM fees

Banks earn more than $2.2 billion annually in ATM surcharge revenue, on top of income from "off-us" fees and other ATM charges, according to Bankrate.com's semiannual checking account pricing survey.

A surcharge is the fee charged to a non-account holder to use a bank-owned ATM. The "foreign" or "off-us" fee is what your bank charges you for using another bank's ATM. If you have an account at Bank A, but withdraw money from Bank B's ATM, both banks are going to charge you -- a practice called "double-dipping" that is legal but loathed by consumers and advocacy groups.

Although increasing numbers of small banks and credit unions are surcharging, surcharge benefits accrue primarily to big banks.

ATMs notify the customer of a surcharge and give the option of not proceeding with the transaction.

One commonly overlooked fee is a charge for exceeding a certain number of debit transactions. Does your bank count a debit transaction as a check transaction, and are you allotted a specific number of free debit transactions each month? If so, you could be paying between 25 cents and a dollar for every debit transaction over your limit.

Some banks charge customers to get a printout of their recent bank transactions at the ATM. Some also charge a fee to get a cash advance on your credit card at the ATM. Charges vary depending on where you live.

Beware of the double dip here, too. Most credit card issuers also charge for cash advances at an ATM.

How to dodge the double dip and other fees

• Try to establish an account at a bank that has a lot of ATMs. Most banks don't charge their own customers to use their ATMs.
• Use only your own bank's ATM whenever possible. If not available, look for machines with a "No surcharge here" logo.
• If you use an ATM regularly, withdraw larger amounts of cash to reduce the number of transactions.
• Use a teller instead, especially when lines at the ATM are long. Be sure, however, that you won't be charged a teller fee.
• Consider using personal checks, or traveler's checks and credit cards, especially when traveling.
• Consider using a credit union, where ATM fees are usually lower.
• Ask for cash back when you use your debit card at the grocery store to save on trips to the ATM.

Avoid cash advances on credit cards at the ATM. When you tally the bank's charge, the credit card issuer's charge for using the ATM and the interest, it adds up to hefty fees.

-- Updated: March 17, 2003