How to Test Your ATM and Get ATM Fee Reimbursement

ATM fee reimbursement is important to independent ATM deployers (IADs) who want to regularly make test transactions on their machines to make sure that everything is functioning properly. We at ATMDepot.com highly recommend testing your ATM machine’s functionality upon its installation, but you will also want to make test transactions regularly to make sure there are no mistakes with cash dispensing.

However, we wouldn’t recommend paying hundreds of dollars a year in bank withdrawal fees. So what should you do to test your machine and how can you minimize or completely avoid paying bank withdrawal fees on your own ATMs? Keep reading to find out.

The Importance of Testing Your ATM

It’s important to test your ATM machine to make sure that it performs all of its functions and that it performs them quickly and accurately. It’s best to find out for yourself that something isn’t programmed quite right or that something mechanical isn’t running smoothly than waiting for a complaint from a dissatisfied customer or the location owner.

You only make money while you are in business. And you are only in business while your machine is working and processing transactions accurately. Especially if your machine dispenses more than one denomination, you want to be 100% sure that 10s and 20s are dispensed in the right quantities. Otherwise, you risk facing a number of customer complaints and journal requests when customers are shorted. Or worse, you risk losing money if your machine dispenses more than it should.

For these reasons, it’s important to test your ATM machine every time you reload it with cash. You’re better safe than sorry. But can you really justify hundreds of dollars a year in bank withdrawal fees?

Types of ATM Fees

You know that ATM machines charge a surcharge, or convenience, fee. That’s why you are in the ATM business to begin with. So when you make a test transaction on your own machine, you know that surcharge fee is going straight back into your account. So you aren’t losing any money there. But what about your bank fees?

Most banks offer free ATM services for their customers when they use machines that are in-network, or owned by that bank or its partners. Similarly, most banks charge withdrawal or transaction fees for out-of-network ATM services, meaning ATMs not owned by that bank. Here are some examples of ATM fees by bank.

Since you own your ATM independently, it is not operated by a financial institution and is therefore always out-of-network. So although you pay yourself your ATM’s surcharge fee when you make a test transaction, you could still face an out-of-network withdrawal fee from your bank.

Fortunately, many banks offer ATM fee reimbursement. Next are considerations you should make when choosing a bank and negotiating ATM fees.

How to Get ATM Fee Reimbursement

ATM fees are among the most commonly charged banking fees. And they add up quickly if you are making regular ATM withdrawals. ATM fee reimbursement refers to the method by which banks pay customers back for certain ATM fees they incur. All banks should have clearly defined policies and fee structures you need to be aware of to minimize and avoid these fees to save yourself a good chunk of change each year.

Did you know that you can call your financial institution’s customer service line and request ATM fee reimbursement? You can. However, you might run into some limitations. 

No ATM Fee Reimbursement Benefits

First, you could be denied right off the bat, no ifs, ands, or buts. Maybe your bank does not offer ATM fee reimbursement, or maybe your particular account doesn’t qualify. If that’s the case, it might be time to look into switching to an account with certain benefits or opening an account with another bank from which you can test your ATM machines at no extra cost.

ATM Fee Reimbursement Benefits on a Case-by-Case Basis

Second, ATM reimbursement is up to your bank’s discretion. Their decision could depend on your circumstances, your business history with the bank, your volume of ATM withdrawal fees, etc. 

Therefore, you could face some inconsistencies. If you get reimbursed once, don’t expect it every time. Alternatively, just because you are denied one time does not necessarily mean that you will always be denied. It doesn’t hurt to call, explain your situation, and ask for ATM fee reimbursement. But if you are making regular test transactions on your ATM machine, we recommend more efficient ways to seek reimbursement than relying on case-by-case decisions each month.

ATM Fee Reimbursement for Specific Banks or Account Types

Some banks offer ATM fee reimbursement as part of their account benefits. The specifications and limitations will differ from bank to bank, though. You might find an institution or an account that offers reimbursement for a set number or amount ($10, for example) of out-of-network ATM fees per month. You might find some that waive the fees altogether.

Most banks will waive out-of-network ATM fees for customers who keep large balances in higher-tier checking or savings accounts. Or reimbursement could depend on maintaining a minimum account balance. 

We recommend finding a bank that offers accounts with ATM fee reimbursement benefits or a bank that waives the fees altogether. These banks will automatically credit your account for the fees at the end of the month or statement cycle which saves you time and energy having to regularly call and negotiate fee reimbursement with your bank.

Banks That Offer ATM Fee Reimbursement

Online banks are notorious for offering ATM fee reimbursement. That’s because most of these institutions do not maintain physical ATM locations which forces customers to use out-of-network ATMs and unavoidably incur fees.

ATM fee reimbursement is more common than you might think. It’s a way to retain customers who could opt for accounts with institutions that better suit their needs. Several banks offer some sort of reimbursement although some limitations may apply. 

Here are some banks that offer ATM fee reimbursement benefits:

Alliant Credit Union 

Offers $20 a month in ATM fee refunds when you use the Alliant Visa debit card. Your refund is deposited into your checking account at the end of each day that you’re charged ATM fees.

Ally Bank 

Reimburses up to $10 a month in out-of-network ATM fees.

Aspiration 

The Summit Account is a free online checking option (costs no monthly fee) that offers no-fee access to any ATM in the world. The company also reimburses all ATM fees you pay to other banks or operators on a monthly basis. 

Axos Bank 

Offers unlimited domestic ATM fee reimbursements for its standard Essential Checking, Rewards Checking, and Cashback Checking accounts. Its Golden Checking account for customers ages 55 and older offers up to $8 in ATM fee reimbursement each month. 

BankFive 

Caps its ATM fee reimbursement at $10 per statement cycle.

Charles Schwab Bank 

The High Yield Investor Checking account offers customers unlimited ATM fee reimbursement.

E-Trade Financial Corporation 

Offers free domestic ATM use.

Fidelity Investments 

Also offers free domestic ATM use.

First Republic 

Offers free ATM use around the world.

IncredibleBank 

Automatically reimburses external ATM fees, though a minimum balance is required to avoid incurring a monthly fee.

LendingClub 

Customers with either a Rewards Checking or Tailored Business Checking account receive unlimited ATM fee reimbursements.

Navy Federal Credit Union 

Offers up to $10 in ATM fee rebates per statement cycle for its Free Easy Checking account on the condition that members either set up direct deposit or make at least 20 transactions each month. However, to qualify to open an account with Navy Federal Credit Union, you also need to be a member of the military or have a household connection to someone who is. 

Needham Bank 

Offers unlimited ATM fee reimbursement, both domestic and international with no minimum account balance requirements or monthly fees.

TD Bank 

Customers with a Beyond Checking account can get unlimited out-of-network ATM fee reimbursements as long as they maintain a minimum balance of $2,500 in the account.

TIAA Bank 

Customers can get reimbursed up to $15 in ATM fees each month without maintaining a minimum balance. Accounts that require a minimum average daily balance of $5,000, however, offer unlimited ATM fee reimbursement. 

Conclusion

In addition to the many considerations you need to make when searching for the best banks as an IAD, you want to also think about ATM fee reimbursement options. A convenient, cost-effective checking account will allow you to test your ATM machines as often as necessary without incurring hundreds of dollars in fees for doing so. If you’d like to know more about ATM installation and training, click here or contact us today.