Updated: June 4, 2024
Advertising & Editorial Disclosure
ATMs are self-service electronic terminals that provide people with convenient access to banking transactions without the need for a human teller. ATM transactions often include withdrawing money, depositing cash or checks, viewing account balances or transferring money between accounts.
Some banks and credit unions may have on-site ATMs, drive-through ATMs that aren’t connected to a branch’s location or ATMs located in particular retail spots like malls and department stores.
ATMs are convenient terminals that provide 24/7 access to your financial accounts.
ATM transactions include withdrawing money, depositing cash or checks, viewing account balances and transferring money between accounts.
The availability of ATMs has transformed banking and has helped in providing bank access to more people in underserved areas.
ATMs are self-service banking machines. The first ATM was introduced in 1967, and it allowed customers to withdraw cash without visiting a bank branch. Today, knowing how to use an ATM is a basic skill for most people, providing 24/7 access to various transactions like withdrawals, deposits and balance inquiries.
ATM services often provide the ability to check current balances across multiple accounts and facilitate transfers between accounts in the same bank.
Bitcoin ATMs are specialized kiosks that allow users to buy and sell cryptocurrencies like Bitcoin with cash. Unlike standard ATMs, they don't connect to a bank account but facilitate the exchange of fiat currency for digital assets.
However, bitcoin ATMs can be attractive to criminals due to their accessibility, anonymity and the lack of consistent identification verification regulations.
ATMs usually require a bank card, which you insert into the machine. Then, you can access your account information by typing in your unique personal identification number (PIN). You typically cannot deposit a check at an ATM unless you have a bank card, though there are some exceptions to this rule.
Although cash withdrawals are the most common ATM transaction, ATMs typically offer many other services. They also provide convenience and global access — you can usually use your ATM card at foreign ATMs to obtain local currency.
Withdrawals
The most common ATM transaction, which allows customers to access their cash anytime, anywhere.
Deposits
ATMs offer the convenience of depositing checks or cash without needing to visit a bank branch.
Fund Transfers
ATMs enable customers to transfer funds between their accounts.
Balance Inquiries
Customers can quickly check their account balance at an ATM.
Bill Payments
Some ATMs enable you to pay bills or make loan payments directly.
ATM transactions come with their fine print. For instance, using “white-label” ATMs, which are usually owned by private companies, might come with higher fees.
Be aware of the legal protections of ATM use. For instance, federal laws like the Electronic Fund Transfer Act limit consumer liability for unauthorized transactions if reported promptly. Some regulations also govern ATM fees, disclosures and accessibility requirements that banks must follow.
Although ATMs offer convenience, there are some things you should be aware of if you plan to use them frequently.
ATM Transaction Fees
Banks may charge fees for ATM transactions, especially if the ATM is out-of-network.
ATM Transaction Limits
Banks often set daily withdrawal limits, typically ranging from $300 to $1,000.
Skimming Devices
Criminals may install skimming devices to steal card information, so inspect the ATM carefully.
You can take certain steps to reduce fees, particularly when traveling or in emergencies:
The U.S. has the highest number of ATMs globally, with over 500,000 installed as of 2022. The banks with the most ATMs are Chase, Bank of America and Wells Fargo. Some large national banks, like PNC Bank, are part of broad ATM networks that can extend access to up to 60,000 different ATM locations or more.
Bank | Branches | ATMs Operated |
|---|---|---|
Chase | 4,900 | Around 15,500 |
Wells Fargo | 4,468 | Around 11,000 |
Bank of America | 3,796 | Around 15,000 |
Branch data from FDIC; ATM data reported by each institution
The U.S. ATM services market is a multi-billion dollar industry. In addition to banks, independent ATM operators provide services such as hardware, software, maintenance and other services to support these ATM networks.
Financial inclusion in banking refers to the process of ensuring that people and businesses have easy access to needed and affordable financial services. ATMs play an important role in this area by providing access to basic financial services in regions with limited or no bank branch coverage. Some banks offer incentives to use ATMs by making them cheaper to use than similar in-person transactions.
But more widespread usage of ATMs also means more security risk. Keep safety in mind to protect yourself, your money and your financial information. Here are some easy tips to follow:
Get answers to some common questions about using ATMs and ATM transactions.
Many credit cards allow cardholders to use their credit cards at ATMs to obtain cash advances. When you use your credit card at an ATM, the transaction is treated as a cash advance. Keep in mind that cash advances often incur higher interest rates and fees compared with regular purchases.
Financial institutions typically provide tools on their website or mobile apps that allow customers to search for nearby ATM locations by entering an address or zip code. Also, most ATMs display prominent branding or logos which make them easy to identify.
Withdrawal limits vary by bank but typically range from $300 to $1,000 per day. These limits are used to help prevent fraud and excessive cash withdrawals.
Yes, you can use your debit or ATM card at foreign ATMs, but there may be additional fees charged for international transactions and currency conversion rates applied.
ATMs reduce the need for human tellers, which lowers the operational costs for banks. They also provide convenient self-service options, which can improve their customer satisfaction and retention rates.
Many banks now offer cardless ATM access. With this feature, customers can withdraw cash from an ATM without a physical ATM card.
About Alvin Yam, CFP
Alvin Yam is a certified financial planner with over 15 years of experience working with individuals and corporations. He is an expert in wealth management and personal banking. Alvin is also the Founder and Managing Partner at Paraiba Wealth Management, an independent registered investment advisor.
Prior to founding Paraiba, Alvin spent five years as a Director at HSBC overseeing retail and wealth products, and was also a Financial Consultant at Charles Schwab, advising clients on investments, retirement planning and banking products.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
our editorial policies and expert editorial team.
