Although use of cash in the past 3 years has been dwindling, using an ATM is still a part of like. And whilst the widespread presence of ATMs around the country make it easy for people to access their money with a debit card in hand, the  costs are not as evenly distributed.

While most people know it is cheaper to withdraw cash from the same bank that has issued a debit card with no fees, many do not know exactly how ATM fees work.

To help you get a better understanding of the potential fees, here is a rundown of what kind of ATM fees are allowed to be charged and how much they can end up costing.

ATM Operator Fees

The most common fee for ATM use in Australia is an operating fee by the ATM processors.

This could be from another bank or an independent network, like rediATM, and tends to be around $1.50 – $2.50 per transaction (including balance checks).

Many ATM operators overseas will also charge you fees to use your Australian debit card, though the amounts could be higher or lower depending on the country. Cardholders will be informed of the charge before they go ahead with a transaction so they can decide whether it is worth it.

Bank ATM Disloyalty Fees

While none of the Big Banks charge a disloyalty fee for cardholders who withdraw money from another ATM network in Australia, there are still some smaller debit card providers that may charge a fee of $0.50 or more.

This fee may also apply after a certain number of transactions at other ATMs and could end up costing you a lot more for your money.

Foreign ATM Fees From The Bank

For overseas ATM use, banks may charge cardholders a flat rate for the withdrawal, ranging between $2-$5 per transaction in most cases, as well as a percentage for any currency conversion.

To avoid paying a lot in fees while travelling, look for banks that have international networks, like Commonwealth Bank and Citibank or try to limit how often money is withdrawn.

Cash can be a convenient way of paying for things, but dealing with costs for withdrawing money from ATMs is often not worth the additional expense.

Instead, it may be better to request cash out during EFTPOS transactions, or find out what kind of network your bank has and stick to those ATMs so that your money really is worth it.