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 – Automated teller machine networks like Cirrus and Plus allow you to withdraw money from ATMs abroad, even if they are not operated by your bank. For example, a Chase customer needing an ATM abroad can use a Cirrus ATM to access money without needing to find a Chase-branded machine. This broad access ensures that customers can manage their cash needs easily, no matter where they are.

Fee Savings – Networks such as Allpoint and MoneyPass are known for their surcharge fee-free access at partner ATMs, saving frequent users from additional fees. By using in-network ATMs, customers can avoid costly out-of-network charges that often range from $2 to $5 per transaction. Some banks even reimburse ATM fees when using specific networks.

24/7 Availability—ATMs in these networks are accessible around the clock, providing services outside bank hours. This is particularly beneficial for those who need cash late at night, on weekends, or during holidays when bank branches may be closed.

Enhanced Services – Some ATMs enable deposits, fund transfers, or even mobile wallet withdrawals (e.g., Apple Pay-enabled ATMs). Others offer bill payments, check cashing, and multi-language support, making banking more accessible and efficient for a wider range of customers.

How ATM Networks Connect to Your Bank and Savings Account

ATM networks operate through a sophisticated system of ATM switches, which help route data between banks and financial institutions. Whether you withdraw cash from a checking or savings account, these switches ensure the transaction reaches your bank and is processed securely.

When you insert your card, the magnetic stripe or chip provides account details transmitted through various ATM applications. These applications verify your account balance and permissions before approving the transaction. This process works the same way whether you’re using an ATM in your hometown or an ATM abroad.

ATMs rely on different types of network connections, such as IP, Ethernet, and dial-up, to handle transaction traffic efficiently. Some modern ATMs even support additional transactions beyond cash withdrawals, such as bill payments and mobile deposits. Their ability to transmit voice and video also enables customer support features, such as live teller assistance.

Since the first ATM was introduced in the 1960s, ATM networks have evolved significantly, offering more seamless and secure banking experiences worldwide. Whether at home or traveling, these networks ensure quick and reliable access to your money whenever you need it.

What Happens When You Use an ATM?

When you use an ATM, it automatically checks whether your ATM card comes from a bank participating in its network. If not, you will likely receive a message early in the process 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, such as checking balances.

Even if your bank doesn’t participate in a specific terminal’s ATM network, you can generally withdraw cash from the machine. However, you may need to use an in-network ATM to avoid surcharge fees and complete transactions such as deposits.

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.

How to Use an ATM: Step-by-Step Instructions

Using an ATM is a simple and convenient way to do your banking, but if you’re new to it or want to ensure a smooth transaction, following these step-by-step instructions can help.

Step 1: Locate a Suitable ATM

• Find an ATM that’s part of your bank’s network to avoid additional fees.
• If you need cash while traveling, look for in-network ATMs or those with lower withdrawal fees.
• Ensure the ATM is in a safe, well-lit area, especially if using it at night.

Step 2: Insert Your Card

• Place your debit card, credit card, or ATM card into the machine card slot.
• Some machines require you to insert and remove your card quickly, while others hold onto the card until the transaction is complete.

Step 3: Enter Your PIN (Personal Identification Number)

• Use the keypad to enter your 4- to 6-digit PIN securely.
• Cover the keypad with your hand to prevent others from seeing your PIN.
• If you enter the wrong PIN multiple times, your bank may temporarily lock your card for security reasons.

Step 4: Select a Transaction Type

Many ATMs offer multiple services, including:

• Withdraw Cash – Select this option if you need to take out money from your checking or savings account.
• Deposit Money – Some ATMs allow you to deposit cash or checks into your account.
• Check Account Balance – You can view your current balance before making a withdrawal.
• Transfer Funds – Move money between your linked bank accounts.

Step 5: Choose Your Account (If Required)

• Some ATMs will ask whether you want to withdraw cash from a checking or savings account.
• Select the appropriate account for your transaction.

Step 6: Enter the Amount

• Use the keypad to enter the amount you want to withdraw or deposit.
• ATMs typically offer preset options (e.g., $20, $40, $100), but you can manually input a different amount.
• Be mindful of your bank’s daily withdrawal limit and ensure you have enough money to complete the transaction.

Step 7: Confirm the Transaction

• Review the transaction details on the screen.
• Some machines will show available balance updates before proceeding.
• Press “Confirm” or “Yes” to continue if everything looks correct.

Step 8: Take Your Cash (If Withdrawing Money)

• The ATM will dispense your cash through the cash slot.
• Count your money before leaving to ensure you received the correct amount.
• Contact your bank immediately if the machine does not dispense the correct amount.

Step 9: Take Your Receipt (Optional)

• Some ATMs give the option to print a receipt or display the details on the screen.
• If you don’t need a paper copy, select “No Receipt” to reduce paper waste.
• Some banks send a confirmation via their mobile banking app if you choose a digital receipt.

Step 10: Retrieve Your Card & End the Session

• If the ATM held onto your card, wait for it to be ejected, then remove it.
• Ensure you log out of your session to protect your account from unauthorized use.
• If the machine fails to return your card, contact your bank immediately.

Final Tips for Using an ATM Safely

✔ Be aware of your surroundings – If you feel uncomfortable, use another ATM.
✔ Avoid sharing your PIN – Never write it down or share it with anyone.
✔ Use ATMs inside bank branches – These are typically more secure than standalone ATMs.
✔ Enable transaction alerts – Some banks notify you when ATM transactions occur, helping detect fraud.

Following these steps ensures a smooth and secure ATM experience, whether you’re withdrawing cash, depositing funds, or checking your balance.

What ATM Networks Are There?

Outside your bank’s own machines, 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

The Plus Alliance Network has more than 2 million ATMs operated by Visa. 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 financial institution 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. Some banks automatically refund fees, while others require you to submit a claim.

Switch to a Bank with a Better ATM Network

If your current bank’s ATM options are too limited, consider switching to a financial institution with a larger ATM network. Banks partnered with Allpoint, MoneyPass, or CO-OP provide fee-free access to thousands of machines nationwide. If you don’t want to switch completely, you can open a secondary account at an online bank with a broad ATM network and use it specifically for cash withdrawals.

Get Fee-Free Cash Back at Retailers

Another way to avoid ATM fees is to get cash back when making a debit card purchase at grocery stores, gas stations, or pharmacies. Many retailers offer this service for free, allowing you to withdraw small amounts of cash while shopping. Just check if the store has a cash-back limit to ensure it meets your needs.

Plan Ahead and Withdraw Larger Amounts

If you must use an out-of-network ATM, consider withdrawing a larger sum to minimize the number of transactions you make. While this won’t eliminate fees, it reduces how often you are charged them. Just be mindful of your financial institution’s daily withdrawal limits and take precautions when carrying large amounts of cash.

Explore Mobile Banking and Digital Wallets

Modern banking tools make accessing money easier without needing physical cash. Use mobile banking apps for transfers, bill payments, and peer-to-peer transactions. Additionally, digital wallets like Apple, Google, and Samsung Pay allow you to make purchases without cash or a physical debit card, reducing your reliance on ATMs altogether.

By implementing these strategies, you can minimize ATM fees and ensure you always have convenient access to your money, even if your bank isn’t part of a major 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 money without using a physical card, relying on smartphone apps and QR codes for card reader authentication. This improves security by reducing the risk of card skimming and enhances convenience by allowing users to access cash even if they forget their card.

Mobile Wallet Integration – Some ATMs now accept withdrawals through mobile wallets like Apple Pay or Google Pay, making transactions even more seamless. Instead of inserting a debit card, users can tap their phone or smartwatch to authenticate transactions, reducing physical contact and speeding up the process.

Cryptocurrency ATMs – As cryptocurrencies grow in popularity, some networks are adding ATMs that allow users to buy or sell digital currencies like Bitcoin. These machines function similarly to traditional ATMs but connect to crypto exchanges, allowing users to deposit cash to purchase crypto or withdraw fiat currency from their digital wallets.

Biometric Authentication – Some ATMs now use fingerprint or facial recognition technology to verify a user’s identity to enhance security. This eliminates the need for PINs, making transactions faster and reducing fraud risks.

AI-Powered Customer Service – Advanced ATMs now offer AI-driven assistance, providing real-time customer support via interactive touchscreens or video chat. This helps users resolve issues without needing to visit a bank branch.

These technologies enhance both accessibility and security, ensuring that banking remains fast, convenient, and safer than ever.ers.

ATM Network FAQs