What Are ATM Networks and How Do They Work?
Have you noticed that some banks tout the size of their ATM network?
Financial institutions use this to let customers know it will be easy for them to manage their checking accounts and access cash. Some banks also enable customers to use ATMs for savings account access. But what exactly is an ATM network?
While banks and credit unions generally manage their own ATMs, they may also belong to a network that allows customers to make free transactions at terminals owned by a third party. This is how the financial technology company Chime, which offers debit cards but has no physical branches, can provide its customers access to more than 60,000 fee-free ATMs.
Keep reading to learn more about ATM networks, who offers them, and what to do if your bank doesn’t participate.
What Is an ATM Network?
An ATM network is a system connecting ATMs and banks to facilitate cash withdrawals, deposits, and other banking services. These networks, such as Cirrus, Plus, or Allpoint, operate using shared infrastructure to allow customers access to their accounts at ATMs worldwide, regardless of their bank.
ATM networks use electronic payment systems to ensure secure transactions. For example, a customer of Bank A can use an ATM operated by Bank B through the shared network. Networks often determine associated fees or surcharge-free access. ATM networks can refer to machines operated by a specific bank or credit union. For instance, Bank of America has a network of approximately 16,000 ATMs.
ATM network machines are typically found in locations where people need convenient access to cash or banking services. Common locations include:
Bank Branches: Often located inside or adjacent to banks.
Retail Stores: Supermarkets, pharmacies, and convenience stores frequently host ATMs.
Transportation Hubs: Airports, train stations, and bus terminals.
Entertainment Venues: Movie theaters, casinos, and sports arenas.
Gas Stations: Common for quick cash access.
Standalone Locations: Streets, malls, or public areas.
Using an in-network ATM is crucial if you want to avoid costly ATM fees.
Advantages of Using an ATM That Is Part of a Network
Convenience: ATM networks like Cirrus and Plus allow you to withdraw money from ATMs globally, even if they are not operated by your bank. For example, a Chase customer traveling abroad can use a Cirrus ATM to access funds.
Fee Savings: Networks such as Allpoint and MoneyPass are known for surcharge-free access at partner ATMs, saving frequent users from additional fees.
24/7 Availability: ATMs in these networks are accessible round-the-clock, providing services outside bank hours.
Enhanced Services: Some ATMs enable deposits or even mobile wallet withdrawals (e.g., Apple Pay-enabled ATMs).
How Does an ATM Network Work?
When you use an ATM, it automatically checks to see whether your card comes from a bank that participates in its network. If not, you will likely receive a message notifying you that a fee will be assessed for your transaction.
During your transaction, the ATM communicates securely with your financial institution to correctly route deposits or receive permission to dispense cash from an account.
Some machines are only configured to handle certain transactions, such as withdrawals, while others may be able to handle a variety of functions.
Even if your bank doesn’t participate in a specific terminal’s ATM network, you can generally make withdrawals from the machine. However, to avoid fees and complete transactions such as deposits, you may need to use an in-network ATM.
The easiest way to find in-network terminals is to use the ATM locator function on your bank or credit union’s website or app. Virtually all institutions offer a way to locate participating ATMs online.
Another way to find your institution’s ATM network is to look at the back of your debit card. If your bank or credit union participates in a network, its logo should be shown there.
Alternatively, you could contact your bank to ask if they participate in a network such as Allpoint or Pulse. Once you know that information, you can search the ATM network’s website for locations.
What ATM Networks Are There?
Outside your bank’s own ATMs, here are some of the major networks currently available:
Allpoint
The Allpoint network includes more than 55,000 ATMs worldwide.
There is no surcharge for transactions completed by members of participating institutions, including Capital One and PNC Bank. Allpoint is also a popular credit union network.
PULSE
Owned by Discover, the PULSE ATM network includes 400,000 ATMs in the U.S. and 1.8 million globally. For surcharge-free transactions, it partners with another network: MoneyPass.
MoneyPass
With about 37,000 ATMs nationwide, MoneyPass is a surcharge-free ATM network used by national institutions such as Discover Bank and smaller local and regional banks.
Plus Alliance Network
Operated by Visa, the Plus Alliance Network has more than 2 million ATMs worldwide. In the U.S., its machines are placed in businesses such as Costco and Target. Chime is one of the participants in this network.
Co-op ATM Network
Nearly 2,000 credit unions participate in the Co-op ATM Network. Together, they provide members with access to more than 30,000 surcharge-free ATMs in all 50 states and 10 countries.
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What If My Bank Isn’t In a Network?
If your bank doesn’t participate in one of the major ATM networks, you might face challenges when accessing your money without incurring fees.
However, there are several strategies you can use to minimize or even eliminate these fees.
Use Your Bank’s ATMs Exclusively
One of the simplest ways to avoid ATM fees is to stick to your bank or credit union’s ATMs. Although this might require some planning, especially if your bank has a limited number of ATMs in your area, it’s the most straightforward way to ensure you don’t get hit with unnecessary charges.
Request ATM Fee Reimbursements
Check if your bank offers ATM fee reimbursements. Many financial institutions, particularly online banks and credit unions, offer reimbursement for out-of-network ATM fees up to a certain amount.
For example, Ally Bank reimburses up to $10 per statement cycle, while Alliant Credit Union offers up to $20 monthly in ATM fee rebates.
Understand the terms and how to claim these reimbursements, as some banks require you to submit a request or provide proof of the charges.
Switch to a Bank with a Better ATM Network
If your current bank’s ATM options are too limited, consider switching to a bank or credit union with a more extensive ATM network or generous fee reimbursements.
Institutions belonging to large networks like Allpoint, MoneyPass, or CO-OP often provide fee-free access to tens of thousands of ATMs nationwide.
If you’re not ready to switch banks fully, consider opening a secondary account with an online bank with a broad ATM network. You can link this secondary account to your primary account for easy transfers and use the secondary bank’s debit card to withdraw cash without fees.
Get Fee-Free Cash Back at Retailers
Another way to avoid ATM fees is to avoid them altogether. Many retailers offer the option to receive cash back when making a purchase with a debit card.
This can be a convenient way to get cash without any fees, especially if you’re already shopping. Just remember to check if the retailer imposes a cash-back limit and plan your withdrawals accordingly.
Plan Ahead and Withdraw Larger Amounts
If you anticipate needing cash and can’t avoid using an out-of-network ATM, consider withdrawing a larger amount to reduce the frequency of your ATM visits.
While this won’t eliminate the fee, it can help you minimize the total amount you spend on ATM fees over time. However, be mindful of carrying large amounts of cash and ensure you keep it secure.
Explore Mobile Banking and Digital Wallets
Modern banking technology offers alternative ways to manage and access your money.
Use mobile banking apps to transfer funds, pay bills, and even send money to friends and family without needing cash.
Digital wallets like Apple Pay, Google Pay, or Samsung Pay can also be used to make purchases directly from your phone, often without the need for physical cash.
Using these strategies, you can better manage your finances and minimize the impact of ATM fees, even if your bank doesn’t participate in a major ATM network.
New ATM Technologies That Make Banking Even Easier
Emerging technologies are transforming ATM networks with innovations such as:
- Cardless Withdrawals: Many ATMs now allow customers to withdraw funds without using a physical card, relying on smartphone apps and QR codes for authentication, improving security and convenience.
- Mobile Wallet Integration: Some ATMs now accept withdrawals through mobile wallets like Apple Pay or Google Pay, making transactions even more seamless for users.
- Cryptocurrency ATMs: As cryptocurrencies grow in popularity, some networks are adding ATMs that allow users to buy or sell digital currencies like Bitcoin.
These technologies enhance both accessibility and security for customers.
ATM Network FAQs
An ATM network is a group of ATMs that are either owned by the same company or linked to a common system. Large national banks have their own ATM networks, but many financial institutions—particularly those with fewer physical branches—belong to networks operated by companies such as Allpoint or MoneyPass.
One of the main benefits of an ATM network is that it can save consumers money. When a financial institution joins an ATM network, its customers can generally complete transactions at network terminals without paying a fee. A large ATM network can be an important selling point for online and local banks with few branches. It helps reassure customers that they will be able to access their money easily.
Chase and Bank of America each have more than 16,000 ATMs, which may make their networks the largest bank-owned ATM networks. However, if you are looking for the network with the most surcharge-free ATMs, the answer could be Allpoint. It has more than 55,000 surcharge-free terminals worldwide.
