How Much Are Credit Card Processing Fees Costing You?

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Have you noticed signs on the counters of local restaurants offering a discounted price for cash payments? On the counters of local retail shops? What about at the pump? And maybe you’ve seen the opposite: notices that credit transactions will incur an extra fee. Maybe in the drive-thru windows of your favorite fast food joints? Why is this?

Merchants are charged credit card processing fees every time someone swipes their card. Basically, it costs money for the credit card processing company to communicate with the network and complete the transaction. To help cut costs, many companies are attempting to minimize these charges by encouraging more cash transactions. Or, they just pass the cost onto the customers.

So, cash is not becoming obsolete as some might have previously thought. This is good news for the ATM industry. It’s good news for you, too, if you are in or looking to enter the ATM machine business. 

But if you are a store owner, how much are credit card processing fees costing you? How much are they costing you as a consumer? Keep reading to learn more about credit card processing fees and how to avoid them.

What Are Credit Card Processing Fees and How Do They Work?

Credit card processing fees are the costs businesses pay to accept credit card payments. These fees cover the services of processing transactions, ensuring security, and transferring funds from the customer’s account to the merchant’s account.

When a customer makes a purchase using a credit card, the payment information is sent through a payment processor to verify the transaction. The card network (Visa, Mastercard, etc.) and the issuing bank approve or decline the transaction based on available funds and fraud checks. Once approved, the funds are transferred from the customer’s bank to the merchant’s account, minus processing fees.

Merchants are typically responsible for paying credit card processing fees. But while they absorb the initial cost, many try to recoup the expense by passing some or all of it onto the customer. 

How Much Are Credit Card Processing Fees Costing You?

Businesses

Credit card processing fees are generally 1.5% to 3.5% of the transaction ($1.50-$3.50 for a $100 sale). There are a number of factors that determine the cost including payment processor, card type, and transaction type.

Payment Processor

There are many different payment processors businesses can use to accept digital payments. Each processing company, such as PayPal, Stripe, Square, etc. sets its own rates and fee structures.

Card Type

Credit card companies like Visa, Mastercard, American Express, Discover, etc. are independent companies responsible for setting their own credit card processing fee amounts. Amex, for example, is notorious for charging slightly more than the other three major card brands.

Transaction Type

Furthermore, fees vary according to transaction type: card-present (in-person) or card-not-present (online, phone, or manually entered). This is due to differences in security, fraud risk, and processing costs.

For example, swipe, chip, and tapped transactions will be charged a lower credit card processing fee because they are more secure—the card is present. EMV chip technology and PIN verification also reduce fraud, minimizing the risk.

Online, phone, or manually entered transactions will experience higher credit card processing fees due to higher fraud and chargeback potential (disputes where the customer claims fraud or purchase errors). The higher cost also helps cover extra security measures like CVV verification and fraud detection tools.

For these same reasons, debit card transactions will experience lower credit card processing fees than credit card transactions. They are lower risk and cost less to process. 

First of all, debit transactions are lower risk for banks. There is no borrowing involved. Debit transactions pull funds directly from the customer’s bank account, so there’s no risk of non-payment or defaults like there is with credit cards. And since debit purchases use the customer’s actual funds, chargebacks are less common compared to credit cards.

And debit transactions cost less to process. Because they often use a PIN-based network, they are more direct and secure which reduces fraud risks and the need for extensive fraud prevention measures. Plus, when a debit card is used, the money moves directly from the customer’s bank to the merchant’s bank, eliminating the need for a credit extension or underwriting, which adds costs to credit card transactions.

You can use this calculator provided by NerdWallet to calculate your monthly credit card processing fee cost estimate.

Consumers

Now, while there are charts and calculators to help businesses estimate how much they’ll pay in credit card processing fees each month, it isn’t so easy for consumers. The biggest reason is because there are less transparent ways that businesses can pass the cost onto the consumer such as increasing product and service prices or reducing discounts. 

However, according to the National Association of Convenience Stores (NACS), swipe fees cost the average family $700 a year. Paying with cash can minimize or eliminate this extra cost.

How Can You Avoid Credit Card Processing Fees?

Businesses

If you feel like you are spending too much money on credit card processing fees, you can strategically choose a processor with lower markups or negotiate rates with a current processor. Sidestep avoidable fees by looking for a processor that doesn’t charge statement fees, minimum monthly processing fees, etc. And try to keep your chargeback rate to a minimum to reduce your perceived risk. High rates of chargebacks can cause providers to increase your transaction fees.

But obviously, the less credit card transactions you process, the less credit card processing fees eat into your revenue. Debit card transactions charge lower fees than credit card transactions. But you can’t really control the card type a customer uses where cards are accepted. So offer discounts for cash payments to promote cash over credit transactions.

You can also pass fees on to customers. However, there are some states (like Connecticut and Massachusetts) that have laws against credit card surcharges. In these states, it is unlawful for a retailer to add a fee to a credit card purchase to cover the processing fee. But every state allows for cash discounts. Cash discounts are protected by U.S. Code, so retailers can encourage customers to use cash over card.

Consumers

It goes without saying that if you don’t pay with a card, you, in many instances, pay less. It is not uncommon to see a discount for paying with cash or an extra charge for paying with a card. 

For example, according to a 2022 study conducted by NACS, 29% of participating convenience stores said they were offering consumers discounts for paying in cash. Convenience stores have noticed the impact the overall rising costs of goods and services have had on consumer buying behavior. “While sales and traffic have slowed as gas prices climbed, retailers continue to seek out innovative ways to provide value at the pump and inside the store to help their customers extend their paychecks and weather this period of inflated costs,” said Jeff Lenard, NACS vice president of strategic industry initiatives. 

Add to that the fierce gas price competition, and it’s no wonder we’ve started seeing two different prices at the pump: one for cash and one for card. KVUE reported that “NACS has repeatedly surveyed customers about their price sensitivity at the pump and has found that nearly half of all consumers would change their behavior to save 5 cents per gallon.”

According to convenience retailers surveyed by NACS, credit card processing fees average more than 10 cents per gallon. Therefore, not all businesses are passing the entire cost of credit card processing fees onto the customer but might, in some cases, simply be sharing it.

ATMs Can Help!

Want to encourage more cash transactions in your store? Want to transition to cash only? Both are possible by installing an ATM in your store or business. We make it easy to get started. 

You can purchase a machine for your location and earn the surcharge fee on withdrawals on top of avoiding credit card processing fees. Or, we can match you with a professional who will place and operate an ATM in your location hassle-free—for free! If you’re ready to save money on credit card processing fees, click here to get started today.

Are Credit Card Interest Rates Keeping You in Debt?

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“[Banks] own your butt, and you gave them the deed! Don’t give them the deed to your butt! They own you!” –Dave Ramsey

Credit card interest rates continue to rise, yet consumers are still spending. Why? Well there are a number of factors that contribute to Americans’ trillion dollars of credit card debt. Lower income households are struggling to stay afloat, especially after the Covid-19 pandemic. Many people continue to live and spend outside of their means. Credit card interest rates are at an all-time high. And credit card companies profit from keeping you in debt. 

This article will explore the tactics used by credit card companies to increase their profits and keep you in debt. We’ll also share ways to avoid credit card interest rates to get and stay out of credit card debt. 

As Dave Ramsey says, “You can make it without these things. Get you a debit card. Pay cash for it.” Here’s how:

How Bad Are Credit Card Interest Rates?

Basically, credit card interest rates determine how much extra you’ll pay if you carry a balance on your card from month to month. And, according to Bankrate, that’s the case for about 1 in 2 credit card holders. 

The Federal Reserve’s string of interest rate hikes lifted the average credit card rate to an all-time high of more than 20%. Credit card fees increased despite Joe Biden’s move to cap credit card late fees in March 2024. The financial industry responded by filing multiple lawsuits against the administration. 

Increasing credit card interest rates, in addition to steadily high inflation and the cumulative increase in prices over the last three years, leaves many households in a bind, says Greg McBride, chief financial analyst at Bankrate.com.

Credit cards have become one of the most expensive ways to borrow money. So why do people still use them? Well, aside from struggling to afford emergency and unplanned expenses, credit card companies intentionally mislead and manipulate borrowers. More on that next.

Why Americans Continue to Use Credit Cards

People continue to use credit cards. They offer convenience, financial flexibility, and various benefits that other payment methods often lack.

Credit cards are easy to use for both in-person and online purchases. They reduce the need to carry large amounts of cash. And automatic billing for subscriptions and recurring expenses simplifies payments.

There are also often a number of perks associated with using a credit card. Many credit cards offer cashback, travel points, or rewards for specific spending categories. Some provide perks like airport lounge access, travel insurance, or extended warranties. 

But Bankrate reported that the most common reasons for credit card debt include emergency and day-to-day expenses. Among respondents surveyed who carry a balance on their credit card(s), 47% say the primary cause was an emergency/unexpected expense(s): 15% named emergency/unexpected medical bills; 9% emergency/unexpected car repairs; 7% emergency/unexpected home repairs; and 16% other emergency/unexpected expenses. Twenty-eight percent cited day-to-day expenses such as groceries, childcare, and utilities as the primary cause.

Yes, credit card use can help build a positive credit history. Credit history is often crucial for securing loans, mortgages, and even some jobs. And paying on time and keeping balances low can improve your credit score. But this is only the case if credit cards are used responsibly and borrowers can avoid or minimize credit card interest rates. And, unfortunately, credit card companies actively work to prevent this. 

Why Credit Card Companies Want to Keep You in Debt

The bottom line is that credit card companies make money from credit card interest rates and other “junk fees”. Junk fees are extra charges that businesses add to the cost of a product or service. They often come with little explanation or transparency. These fees might include service fees, convenience fees, processing fees, late fees, etc. 

So the more products you purchase, the more credit card debt you accrue, and the harder it becomes for you to pay it off or get on top of it, the more money credit card companies make. 

Elena Botella, before resigning from her position with Capital One, questioned how raising credit card interest rates “radically” improves people’s lives. And this, she says, was one of the company’s “pie in the sky” goals. At the end of the day, it was just another way for the company to make more revenue. 

According to Bilal Beydoun, Director of Policy and Research for Groundwork Collaborative, credit card companies profit from predatory pricing. He defines this as “algorithmic-driven pricing,” or what you might have heard called “dynamic pricing”. Many companies were able to exploit the economic emergency created by the pandemic by raising their prices, contributing to inflation. So when you purchase a product at an inflated price and carry a balance at, say, 35% APR, you become a victim of what Beydoun refers to as “corporate profiteering.” The already inflated purchases you are charging follow you the rest of the year and cost you more and more every month.

Isn’t Credit Card Debt a Choice?

Most people believe that people who take out loans or open credit cards make that choice and should therefore be responsible for it. But Botella argues that most people wouldn’t make that choice if they had all of the information that credit card companies have. After leaving Capital One, Botella travelled the country looking for stories about the experiences of people living with debt and how they had been affected by the choices credit card companies like Capital One were making.

At one point in her career with Capital One, Botella was on a team where she was tasked with conducting experiments to see how much money the company could extract from people. “The bank is doing those experiments to measure, like, how much debt can I get somebody in, up until the point that they’re going to be in so much debt that they default because of that extra debt burden?” she explains. 

Botella believes that credit card companies are taking advantage of the fact that most people don’t understand the whole picture. “The two parties are operating with just completely different sets of information,” Botella says. “So they have a specific estimate: this person is going to get into $13,000 of debt. And over the next five years, they’re going to pay $8,000 worth of interest, whatever the case may be. They know that and you don’t and would you make the same decision if they just told you that?”

And raising credit card interest rates isn’t the only strategy credit card companies use to keep consumers in debt. Remember those perks we listed earlier? Just how much are you rewarded for the thousands of dollars the credit card company makes off of you? 

Understanding Credit Card Company Tactics

Capital One in particular has been penalized for practices like targeting people with low credit scores, tricking them into buying add-on services like credit and payment monitoring they didn’t actually need, and leading them to mistakenly believe that those things would improve their credit. But you have to understand that credit card companies are for-profit businesses. They will aim to increase their profits every year.  

“No one should be surprised that credit card debt hit another record high,” says Matt Schulz, chief credit analyst at LendingTree. And “there’s very little reason to believe that we won’t continue to see new credit card debt records being set going forward.”

Junk Fees

Rohit Chopra, former Commissioner of the United States Federal Trade Commission, has made big strides as Director of the Consumer Financial Protection Bureau (CFPB). He’s been particularly concerned with regulating excessive fees levied on people by credit card companies and banks. “We put out a rule…regarding credit card junk fees. And so what we found was that there was a loophole that the credit card companies had been abusing for years and years and years to extract an extra $27 million a day, $10 billion a year,” Chopra says.

Credit card junk fees might include anything like annual fees, balance transfer fees, late payment fees, foreign transaction fees, etc. Although, a staggering majority of credit card company profits comes from credit card interest rates ($105 billion out of $130 billion in 2022) rather than from junk fees.

Devaluation of Points

And those points and travel perks credit card holders are so quick to tout? Chopra has plans to reform how credit card points are used, too. “Well, we were actually pretty worried about these credit card companies engaging in massive devaluation of points. They want to say you’re going to be able to use this for free round trips, and then you try and use it and it’s almost worthless. That is not right. So we are actually trying to make sure that the promises are being kept,” he says.

Unethical Practices

Credit card companies have been caught opening up authorized accounts and making serious billing errors that they failed to correct until people reached out. And, believe it or not, Citibank is one example of application discrimination. They analyzed applicants’ last names under the impression that anyone with an Armenian-sounding name would somehow be a poor applicant. “So you simply cannot leave these credit card companies to their own devices,” says Beydoun, “because that almost certainly will lead to some of these practices that we just went through.”

So what can be done?

Why Paying in Cash Avoids Credit Card Debt

To combat credit card interest rates, it’s important to make sure you stay educated about how credit cards work. Read the fine print, ask questions, remain vigilant, and do your research. And of course, avoid credit cards altogether if possible. It’s easier said than done, but remember that the higher your balance, and especially the higher the balance you carry from month to month, the more debt you accumulate in credit card interest rates.

Paying with cash or debit can minimize credit card debt by promoting more intentional spending and reducing reliance on credit.

First, it minimizes impulse spending. When you use cash, you physically see the money leaving your wallet, which can make you more mindful of your purchases. This often leads to better budgeting and less overspending.

Credit cards can create a “buy now, pay later” mentality, encouraging spending beyond your means. Using cash sets a clear limit — once it’s gone, you can’t spend more without actively seeking additional funds. This helps limit overspending.

By using cash for everyday expenses, you reduce the need to put small purchases on your credit card. This helps you focus on paying down existing credit card balances without adding to them, thereby avoiding credit card interest rates.

Paying with cash often requires planning, which naturally leads to better money management. Many people set spending limits by withdrawing a set amount of cash for the week or month. Sticking to a planned budget can help minimize the “need” for credit card spending.

By relying less on credit cards for daily expenses, you can allocate more money toward paying down your existing debt and prevent further debt accumulation. Using cash for non-essential purchases or setting a cash-only rule for categories like dining out, entertainment, or groceries can significantly reduce the risk of accumulating debt.

What Credit Card Interest Rates Mean for ATM Business Owners

We’ve said it before, and we’ll say it again: cash is still relevant. As banks, credit card companies, and other financial institutions get dangerously large, or, “too big to fail”, more people than ever are encouraged to keep cash on hand as a safeguard against financial uncertainty. 

Cash continues to present certain benefits like privacy, budgeting power, and emergency preparedness. Most importantly, it could be the best defense against credit card interest rates and suffocating credit card debt. Don’t let credit card companies own you!

Ready to get into the ATM game? Whether you’ve been skeptical about the relevance of ATM machines amid electronic payment options or want to make some extra money to help tamp down your own accumulated debt, get your free ATM start-up kit today!

Buying an ATM Business vs. Starting an ATM Business

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Is buying an ATM machine business or starting an ATM machine business the best option? Are they even that different? If you want to make semi-passive income with ATM machines, these are two viable paths to take. In this article, we look at the ins and outs of each avenue of getting into the ATM business. 

Buying an ATM Machine Business vs. Starting an ATM Machine Business: How They’re Similar

First, here is what you can expect from both routes. Essentially, you are looking for the same end result. And regardless of how you get there, here is what an ATM business looks like:

Regulatory Compliance

Your ATM business will need to comply with all financial regulations, banking laws, and standards. There’s no getting out of that. 

Location Selection

No matter which path you take, the success of your ATM business is heavily dependent on the location. If your ATM machines are in high-traffic areas like convenience stores, malls, and tourist destinations, you will see more profit than in areas with less foot traffic. 

Cash Management

You will also need to determine a vaulting procedure. Who will be responsible for loading the machine with cash and when? You will need a reliable process for loading and securing cash in your machines. Otherwise, you’re out of business until you’re stocked. And being out of business gives you a bad reputation which can affect future business.

Maintenance and Servicing

ATM machines require maintenance and servicing. They have to be cleaned, monitored for tampering, fixed when they experience error codes, etc. So part of owning ATM machines includes maintenance agreements, troubleshooting knowledge, and relationships with technicians and/or reliable support from an ATM processing partner.

Processing

Speaking of which, you’ve got to have processing partners. You will need to work with a company that can connect your ATM machines to the credit card networks. Otherwise they won’t work. Your machines cannot release funds to ATM users unless they can confirm that the funds are available. This requires communication over a secure, dedicated network.

Banking Relationship

Finally, you will need a banking relationship. If you handle your own vaulting, you will have to find a bank willing to work with you to provide the regular large cash withdrawals you will need to stock your machines. If you decide to hire a vaulting company to handle your cash needs instead, you will still need a business bank account to receive earnings and manage business transactions like maintenance expenses.

But while the operation of an ATM business looks the same whether you are buying an ATM machine business or starting one from scratch, startup will look very different. Next is what you can expect from each option.

Buying an ATM Machine Business: Important Terms

Before getting into specifics, there are some terms that are used when discussing multiple ATM machines under one operator. 

Typically, when we help independent ATM deployers (IADs) get started in the ATM business, we walk them through the process of getting their first, single ATM machine placed, installed, and running. If you’re just getting started in the ATM business, it makes sense to start with just one machine. 

Learn the ins and outs. Master the process. Then you can think about purchasing, placing, and operating more machines once you gain traction and maybe even steady revenue to invest in more machines.

When talking about more than one ATM machine, you might start to hear terms like “route” and “fleet”. In the ATM business context, these terms are related but not always interchangeable.

Route vs. Fleet

An ATM route refers to a set of ATM locations managed by an operator. It emphasizes the geographic distribution and operational structure of ATMs placed in multiple locations (e.g., a route of ATMs in gas stations, hotels, or convenience stores).

An ATM fleet refers to the group of ATMs owned and managed by a single operator, regardless of their locations. It focuses more on the machines themselves rather than their placement.

While people often use the terms interchangeably, “route” is more commonly used when discussing buying or selling an ATM business because it implies an existing network of profitable locations. “Fleet” is more general and often used in discussions about ATM inventory or expansion plans.

Simply, you might have a “fleet” of ATM machines, and they may or may not be sitting in your garage waiting to be placed. Or, you may have a “route” of ATM machines that you regularly monitor, stock, and actively operate.

However, when buying an ATM machine business, the seller could be referring to a route or a fleet. So keep that in mind when determining whether the asking price is fair. Expect to pay more for a route which will have an existing customer base and earn consistent revenue.

Buying an ATM Machine Business vs. Starting an ATM Machine Business: How They’re Different

Initial Investment

Typically, the initial investment will be higher when buying an ATM machine business. ATM businesses for sale will be calculating the value of the equipment itself as well as the revenue potential. There are a number of factors that can influence the cost of buying an ATM machine business. But, for example, a route of 40 ATM machines in Houston, Texas might go for $160,000 and estimate a $90,000 annual cash flow.

When you start your own ATM business, you can purchase as many ATM machines as you can afford. ATM equipment ranges anywhere from $1,000-$3,000 plus the startup cash (~$2,000-$3,000) to vault them.

The main difference is that the existing route that you may be purchasing is already in business. So you would save the time it takes to find locations and negotiate agreements.

Buying an ATM machine business requires a higher upfront investment, but it comes with existing revenue streams. Starting an ATM business can be cheaper upfront, but it requires more leg work: finding locations, negotiating contracts, developing a customer base, etc. 

Revenue Generation

Similarly, buying an ATM machine business offers immediate cash flow from established locations. When you start your ATM business from the ground up, you have to build a client base and put in the effort to strategically place ATMs in profitable locations.

Operational Setup

Again, buying an ATM machine business comes with contracts, locations, and possibly a team in place already. Starting your own ATM business requires you to set everything up from scratch, including securing contracts.

Risk Level

You can typically expect the risk level to be lower when buying an ATM machine business as the business already has historical data. However, you have to be able to verify this for yourself or rely on the seller to provide accurate data. Be wary of sellers who are desperate to sell a route that costs more to operate than it’s worth.

Alternatively, the risk associated with starting an ATM business can be higher due to the uncertainty of how a particular location will perform, how the relationship with the location owner will pan out, etc.

Growth Potential

Typically, when buying an ATM machine business, you are limited by existing contracts unless you are able to negotiate out of them or expand further. You have less flexibility if you want to make changes to existing agreements or add more machines to a route if you are already stretched thin (in labor and funding). 

However, if you start an ATM machine business from scratch, your growth is potentially unlimited depending on your ability to secure successful, profitable locations.

Conclusion

So, buying an ATM machine business is ideal for those who want an established system with immediate cash flow. On the other hand, starting one from scratch allows for more control and flexibility but comes with higher risks and effort.

When evaluating an ATM route purchase, consider the following factors:

  • Location Quality: High-traffic areas can lead to increased transaction volumes.
  • Machine Condition: Ensure ATMs are up-to-date and compliant with current regulations.
  • Existing Contracts: Review the terms with location owners to understand revenue splits and contract durations.
  • Operational Costs: Account for expenses such as maintenance, cash replenishment, and potential location fees.

Overall, remember that it’s essential to conduct thorough due diligence to assess the profitability and sustainability of a route before making a purchase. And, if you come across an opportunity that is just for a fleet of ATM machines, keep in mind that you might still have to put in some effort in getting each machine established.

If you’re looking for an ATM route for sale, you can check online business marketplaces like BizBuySell or Facebook Groups like ATM Business Entrepreneurs. If you’d rather start your own ATM machine business, get your free ATM business start-up kit or contact us today!

Does Cash App Charge ATM Fees?

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With over 50 million users, Cash App is one of the most popular mobile payment apps. It allows users to send money, make payments, and invest. It’s especially popular with lower-income adults and young people, making ATM fees an important consideration for users on a tight budget. 

You can use a Cash App Cash Card at an ATM. But since it’s not tied to a bank account, you might be interested to know how this affects ATM fees: does Cash App charge ATM fees? Keep reading to find out more about how to use Cash App with ATMs.

ATM Fees Explained

Generally, when you use your debit card at an ATM, you will be charged two fees: one by your bank and one by the ATM owner. If you use an in-network ATM, you are only charged one fee since your bank owns that ATM. 

Some banks offer different fee structures and waive certain fees as a benefit of purchasing certain accounts. Check with your bank for more information on ATM fees for your account.

Cash App isn’t a bank, though. So does Cash App charge ATM fees?

Does Cash App Charge ATM Fees?

According to Cash App support, you can use your Cash Card at any ATM for a $2.50 fee. You will also pay any out-of-network fees charged by the ATM operator. This is similar to how your bank might charge for debit ATM withdrawals from out-of-network ATMs. Cash App is the “bank”, and you will still pay the surcharge fee imposed by the ATM itself. 

However, Cash App offers ATM benefits if you set up direct deposit. Customers who get $300 (or more) in paychecks directly deposited into their Cash App in a given calendar month qualify for unlimited free withdrawals at in-network ATMs. One out-of-network withdrawal per 31 days will also be instantly reimbursed. Each time you receive another $300 (or more) in paycheck direct deposits in a given month, free withdrawals will be extended for an additional 31 days.

But what ATMs are considered in-network for Cash App? 

Cash App primarily uses the AllPoint ATM Network. ATMs within this network are referred to as its in-network ATMs. AllPoint ATMs are commonly found at gas stations, convenience stores, and retail stores like Target, CVS, and Walgreens. Cash App has also partnered with 7-Eleven to provide free ATM withdrawals at select locations.

While not officially confirmed, experts believe that Cash App has partnered with several ATM networks to offer free withdrawals at select locations. And most commercial banks in the US (banks that have consolidated assets of at least $300 million), including major institutions like Chase, Bank of America, Wells Fargo, and US Bank, allow Cash App users to withdraw funds for free. 

How to Find In-Network Cash Card ATMs

ATMs with fee-free Cash Card withdrawals will be branded with the Cash App or MoneyPass logo. But there are a few ways you can search for in-network Cash Card ATMs, too.

First, you can search by network. For example, if you know ATMs that connect to the AllPoint ATM network offer free withdrawals, you can search for AllPoint ATMs near you. Or, if you know that Cash Card withdrawals are free at certain commercial banks, you can search by bank name for ATMs near you. 

But the easiest way is to simply check within the Cash App itself. By using the “Find an ATM” option within the Cash App, you can quickly identify in-network ATMs and avoid unnecessary fees. Just open the app, select the Cash Card icon, and click “Find an ATM”. 

Before getting started, you will be informed that you can withdraw from any ATM in the world and pay lower fees at the ATMs listed on their map. It also explains that all in-network withdrawal fees and 1 out-of-network withdrawal fee each month you direct deposit $300+ will be instantly reimbursed.

Once you allow Cash App to use your location, icons will appear on your map indicating locations with in-network ATM machines. Clicking an icon will provide you with the associated fees for using that ATM. Keep in mind that you will still be charged $2.50 unless you receive direct deposits to your Cash App. 

Why Does Cash App Charge ATM Fees?

Cash App isn’t a bank, so why does Cash App charge ATM fees? Well just like a bank, Cash App incurs costs to process transactions, which are passed on to users in the form of fees. Cash App has to pay fees to connect your card to the processing networks. This is how communication takes place to let the ATM machine “know” that you have funds available to withdraw. In most cases, this fee is passed on to the card user.

How Does a Cash App Card Compare to a Debit Card?

A Cash App Card is similar to a debit card in that it is linked to an account balance and you can use it for purchases, ATM withdrawals, and direct deposit. 

Cash App does not require a traditional bank account which makes it particularly convenient for low-income individuals and young adults. Plus, there are no overdraft fees; with a Cash App account, you can only spend what’s available. However, debit cards from banks typically offer stronger fraud protections and customer service than Cash App.

ATM fees and withdrawal limits differ as well. While ATM fees vary by bank, Cash App charges $2.50. Traditional debit card withdrawal limits generally range from $300 to $1,500 per day, depending on the bank and account type. Cash App withdrawal limits include $1,000 per transaction, $1,000 per 24 hours, and $1,000 per 7-day period.

Use a debit card if you need full banking services, direct deposits, bill pay, and higher security. Use a Cash App Card if you mainly use Cash App, want a simple spending option, and don’t need a full bank account. A traditional debit card is better if your bank offers free in-network ATMs or fee reimbursements. A Cash App Card might be preferred if you receive $300+ in direct deposits monthly to get ATM fees reimbursed.

How Does Cash App Charge ATM Fees Affect Independent ATM Owners?

Are you an independent ATM owner? Don’t worry. Fee reimbursement from Cash App (or any bank) does not directly impact independent ATM owners.

ATM operators still charge their fees. Independent ATM owners make money by charging users a surcharge fee (usually $2–$5 per transaction). Even if Cash App reimburses the user, the ATM owner still receives their fee as usual.

Cash App covers the cost for the user. When Cash App reimburses ATM fees, they credit the user’s Cash App balance after the transaction. The user still pays the fee upfront, but Cash App later refunds them, meaning the ATM owner gets paid regardless.

There is no loss to ATM owners. Unlike some bank networks that negotiate lower fees for their customers, Cash App’s reimbursement doesn’t affect what ATM owners receive. The reimbursement comes from Cash App’s funds, not the ATM operator’s earnings.

So, independent ATM owners still profit from fees, regardless of whether a user’s bank or app reimburses them later. 

Conclusion

So, does Cash App charge ATM fees? Yes. Are there ways to minimize them? Also yes.

If you have a traditional bank account and convenient access to in-network ATM machines, take advantage of fee free withdrawals with your debit card. But if you find yourself far from an ATM that is within your bank’s network, it might be easier and cheaper to find an ATM within Cash App’s network. If you don’t have a traditional bank account at all, take steps to minimize Cash App ATM withdrawal fees by using in-network ATMs and setting up direct deposit.

Interested in making money with ATM machines? Get your free ATM start-up kit today!

Setting Your Surcharge: Highest and Lowest ATM Fees

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Like everything else, ATM fees are increasing every year. So, if you are just getting started in the ATM business, you might be wondering what a fair, competitive surcharge fee is. If you’ve already been in business for a while, you might want to know if your rates are still optimal. 

Here, we offer a number of tips and considerations when it comes to setting ATM fees for your ATM machines. You might also be interested in which cities have the highest and lowest ATM fees. If you live in or near these cities, it could help you determine the right surcharge for your specific area. Keep reading to find out how to set the right surcharge for your machines.

General Tips for Setting ATM Fees

Setting an appropriate surcharge fee for an independently owned ATM involves a mix of market research, customer psychology, and profitability analysis. Here are some best practices:

Understand the Market

The first step is understanding your market. The right surcharge fee might depend on where your machine is located. For example, high-traffic areas like airports, bars, clubs, or tourist attractions might allow for higher surcharge fees as customers prioritize convenience over cost.

You also want to analyze nearby competition. If your fee is significantly higher than other ATMs nearby, customers might avoid using your machine in favor of a cheaper one. 

Consider Customer Psychology

Psychology plays a role, too. A standard, familiar, round rate can keep customers from scrutinizing the cost. Most customers are willing to pay between $2.50 and $3.50 in areas where there are many ATM/bank options. 

The condition of your machine also adds to perceived value. Clean, well-maintained, safe machines can justify slightly higher fees. New equipment (shiny), extra features (lighted keyboard), and added benefits (coupons) add to this perceived value as well. If your machine fits one or more of these categories, it could justify a higher surcharge fee.

Conduct Profit Analysis

Third, you want to weigh profit and usage. For example, lower ATM fees might attract more users therefore increasing your overall revenue despite the lower surcharge. On the other hand, higher fees can work if there is little competition. The less ATM options users have, the more convenient your machine becomes and customers have no choice but to pay the ATM fees you set.

Be Transparent

Another ATM surcharge fee best practice is to be transparent. Display your surcharge fee clearly on the screen before customers complete their transaction. A clear, upfront disclosure can prevent negative reactions and encourage repeat customers.

On-screen disclosure is mandatory under the Electronic Fund Transfer Act (EFTA) & Regulation E. It specifies that ATM operators must provide a clear and conspicuous disclosure of any surcharge fees before the transaction is processed. Users must also be given the option to cancel the transaction if they do not wish to accept the fee.

Before a transaction is finalized, the ATM must display the exact surcharge amount being charged. There should be a message stating that the fee is in addition to any fees from the customer’s bank. Finally, there needs to be a Yes/No prompt to allow users to accept or decline the fee.

Different ATM networks (Visa, Mastercard, Pulse, etc.) may impose additional rules, including. If you connect to a specific network, it’s best to check their fee disclosure policies. Your processing company can help with this.

Act on Insights

Finally, it’s important to remember to monitor your transaction volume regularly. Find out what works and what doesn’t work to get to that sweet spot that balances customer satisfaction with profitability. 

Then, continue to monitor as the market changes. Fees might increase from year to year, or competing machines can crop up forcing you to adjust your surcharge fee again. You can, and should, adjust your ATM fees based on the patterns you observe.

Understanding ATM Fees: Flat Fees vs. Percentage-Based Fees

There are a couple of ATM fee structures you can implement: flat fees and percentage-based fees. The difference between flat fees and percentage-based fees for ATM surcharge fees lies in how the fee is calculated and how it affects customer transactions.

Flat Fees

A flat fee is a fixed amount charged per transaction, regardless of the withdrawal amount. For example, a $3.00 surcharge applies whether the customer withdraws $20 or $500.

The advantages of a flat fee structure are predictability, simplicity, and fairness. Customers know exactly how much they’re paying, it’s easier to set up and manage in the ATM system, and customers aren’t penalized for withdrawing larger amounts. 

Paying a $3.00 surcharge on a $500 withdrawal seems a lot more reasonable than for a $20 withdrawal. So, this can make your machine more appealing for those withdrawing large amounts. However, it can also deter those making smaller withdrawals. Plus, you stand to make less for more work. The more cash that’s dispensed, the more frequently you have to restock the machine. This can create more work while earning less.

You can ask your processing company about setting up tiered flat fees as well. Keep in mind, though, that this is only an option for Genmega machines on only one processing platform.

Percentage-Based Fees

A percentage-based fee is a fee calculated as a percentage of the withdrawal amount. For example, a 2% surcharge means that a $100 withdrawal incurs a $2 fee, while withdrawing $500 incurs a $10 fee.

This structure allows you to make more on higher withdrawals while offering flexibility which some customers will perceive as more reasonable. However, percentage-based fees are more complex and can be harder to explain to customers. The higher fees can discourage those withdrawing large amounts (they’ll seek a flat fee ATM machine). And some jurisdictions may regulate percentage-based fees more strictly than flat fees.

Which to Choose?

So, while a flat fee is generally preferred in the U.S. and most other regions because it’s simpler and more widely accepted by customers, a percentage-based fee might be suitable in high-value or niche markets.

If you’re targeting average customers and aiming for high transaction volume, flat fees are usually the safer choice. However, if your location attracts customers making large withdrawals, a percentage-based fee could maximize your profits.

Combining Flat Fees and Percentage-Based Fees

Now, you can also combine these two fee structures. A hybrid fee structure involves charging a base flat fee plus a percentage of the withdrawal amount and creates a tiered approach to surcharges. What this looks like is if, say, a customer withdraws $100, they would be charged either a fixed, flat fee amount ($2.00) or a percentage of the transaction (e.g., 3%), whichever is greater. In this case, the withdrawal fee for $100 would be $3.00.

This hybrid structure increases your revenue potential by earning more on larger transactions while still making a profit on smaller ones. It is also perceived by customers as fair as the fee scales with the transaction size rather than penalizing low or high withdrawals disproportionately. This also allows you to cater to a wider range of customers, both those seeking low withdrawal amounts and those seeking high withdrawal amounts.

However, customers may find the pricing harder to understand and seek a flat fee ATM for simplicity’s sake. It could also deter those needing large withdrawals. Again, high surcharge amounts for large withdrawals (e.g., $5+ on a $300 transaction) might cause some to seek a cheaper, $3.00 flat fee.

A combined, hybrid fee structure works well in a few specific location types. In premium or niche locations like airports, casinos, or upscale venues, customers are less price-sensitive. And if your ATM is located in a place where large transactions are common, the higher ATM fees are easier to justify.

Best practices for combined ATM fees are to set a reasonable rate and offer transparent disclosure. Clearly display the surcharge breakdown on the ATM screen before the transaction so customers can make an informed choice.

Fast Cash Psychology

You can maximize profits by using “fast cash” amount psychology, too. Flat rate fast cash amounts ($60, $80, $100) on the left buttons can attract the flat rate, lower withdrawal users. Then, setting greater fast cash amounts ($300, $400, $600) on the right buttons can maximize profits from percentage rate, higher withdrawal users. 

For this to work, you need to make sure you choose the right percentage. If the percentage fee is too high (e.g., 3%), customers making large withdrawals may abandon the ATM. If the percentage is too low (e.g., 0.5%), you miss out on revenue potential.

By applying flat fees to small fast cash amounts, you encourage frequent transactions. Reserving percentage fees for larger amounts maximizes revenue. This allows you to optimize profits without discouraging usage.

Highest and Lowest ATM Fees

When it comes to setting a flat fee, how do you determine the amount? There are a lot of factors to consider. 

National Averages

The average ATM surcharge fee across the U.S. typically falls between $3.00 and $3.50. According to Bankrate’s 2024 checking account and ATM fee study, the average surcharge reached a record high of $3.19. 

Of the 25 metro areas Bankrate surveyed, the three cities with the highest average ATM fees are Atlanta ($5.33), Phoenix ($5.22), and San Diego ($5.22). The lowest fees were reported in Boston ($4.16), Seattle ($4.34), and Philadelphia ($4.42).

However, smaller operators in competitive areas often charge closer to $2.50 to $3.00 to remain competitive. You’ll find higher surcharges in urban areas, often $3.50 or more, due to convenience and limited cash access. Rural areas typically have lower surcharges, ranging from $2.00 to $3.00.

Factors that Influence ATM Fees

Other factors besides competition and geographic location that influence flat fee surcharge rates include transaction volume, customer profile, operating costs, and convenience.

High-traffic locations may support higher fees without reducing usage, while low-traffic locations benefit from a lower fee to encourage transactions. In areas frequented by cost-conscious customers, such as near universities, keeping the fee closer to $2.00–$2.50 may maximize usage. If your ATM’s costs are low (e.g., rent, cash loading, maintenance), a lower fee like $2.50 might still provide a good profit margin.

ATMs in convenient or exclusive locations can justify higher surcharges since customers are willing to pay more for easy access to cash. For example, fees can go as high as $4.00 to $7.00 in locations like airports, casinos, and stadiums due to captive audiences and high convenience factors. And ATMs in bars and nightclubs are often set around $3.00 to $4.00, as people prioritize convenience over cost.

Conclusion

There is a lot to consider when it comes to setting your ATM fees. The decision will really come down to where you are located geographically, what kinds of locations your machines are in, and who your customers are and what they need. 

At the end of the day, you are the expert on determining your surcharge structure. Monitoring activity and trends on your machine as you test ATM fees will provide you with all of the insights you need.

Your ATM processing company can answer any questions you might still have. Contact us at ATMDepot.com and get started today!