How to Avoid ATM Fees in Canada

While you might already understand why you should have a bank account in Canada, holding cash often seems a lot less relevant. However, it is necessary to have paper currency from time to time. For example, you may need some money for tipping, making purchases at your local farmers' market, or even for parking. Not every business accepts credit cards either, even in today’s modern society.

This is when you usually head to the nearest automated teller machine (ATM). A visit to an ATM can sometimes come with fees. These charges appear only when you make a withdrawal, but they can add up quickly. Especially when you take out cash from a machine that doesn’t belong to your banking network. Between convenience fees and out-of-network charges, what should be a simple cash withdrawal can actually cost far more than you expect. In this guide, we’ll explain how ATM fees work in Canada and, more importantly, show you practical ways to avoid paying them.

What ATM fees are (and when they apply)

ATM fees are the extra charges that you pay when you withdraw cash from a machine. They come in several forms, as noted by the Government of Canada.

• Regular account fee: This charge can appear regardless of the ATM you use, and it applies at every withdrawal. Some banks and credit unions waive this cost when you opt into a banking package.
• Network access fee: Did you withdraw money from an ATM outside of your network? If so, you may see this fee, charged by your bank, appear on your bank statement.
• Convenience charge: A machine operated by another financial institution or private owner may apply this type of fee.

In practice, you can see these charges combined, with multiple fees applicable at the time of an ATM withdrawal.

Common situations that trigger ATM fees

Charges for ATMs in Canada usually show up during everyday circumstances. A few common scenarios cause additional fees more often than people expect. These include:

• Using an out-of-network ATM (one that doesn’t belong to your bank). Here, you may end up paying a fee from your bank as well as a convenience fee from the ATM’s owner.
• Travelling outside of Canada. International withdrawals mean additional costs. In these cases, watch for foreign ATM fees and currency conversion charges.
• Convenience store, bar or independent ATMs. These machines are known for higher convenience fees in exchange for easy access.
• Withdrawing a small amount of cash frequently. Multiple small withdrawals means paying the same fees over and over again. It’s unnecessary.
• Emergency cash withdrawals. Urgent situations mean less time to seek out a fee-free option.

When it comes to ATM charges, one withdrawal isn’t the issue. It’s repeating these same moves time and time again. That is when you will see ATM fees accumulate.

How much ATM fees really cost over time

The cost seems minor in the moment, but ATM fees add up quicker than you might expect. In Canada, withdrawing cash from an out-of-network ATM can result in more than one applicable charge. This depends on the bank, though, as well as your account type. For example, you may pay a convenience fee charged by the ATM owner in addition to a fee from your own financial institution. Together, it can push the cost of a single withdrawal to several dollars, which means that repeated ATM visits, even for small transactions, can add up over time.

Practical ways to avoid ATM fees

When you plan ahead and know where to withdraw cash, it is possible to minimize your ATM costs. Consider the following:

• Stick to your bank’s ATM network. With in-network withdrawals, you can typically avoid convenience fees entirely. To locate the nearest ATM in your network, check your bank’s website or mobile application.
• Withdraw a larger amount, visiting the machine less often. Because ATM fees apply per transaction, less withdrawals means fewer charges. Some banking packages offer a number of free ATM withdrawals each month. In this case, try to stay below that threshold.
• Select an account type with free ATM access. Some chequing accounts include unlimited withdrawals or even reimburse out-of-network fees.
• Use shared ATM networks. In Canada, many credit unions and banks participate in networks, like Exchange, which allows no-fee withdrawals at thousands of locations across the continent.
• Avoid private ATMs when possible. These ATMs tend to charge higher fees that your bank cannot waive.
• Accept cashback at checkout. If your local grocery store or retail outlet offers free cash withdrawals, consider using this option to avoid the ATM charges altogether.

Minimizing ATM fees while travelling

ATM withdrawals cost you even more when you travel abroad. When you use the machines outside of your bank’s network, you may pay a foreign transaction fee plus a currency conversion markup. And that’s just the fees that your financial institution charges. You will likely also see charges from the ATM’s owner.

To reduce these elevated costs, consider taking out cash before your trip. It may also make sense to withdraw a larger amount so you visit the ATM less frequently. You can even check if your bank has a partnering institution abroad with a fee-free agreement.

Takeaway

ATM fees are easy to overlook. But it is also possible to manage them once you know how they apply. With a bit of planning, you can access your cash without paying extra in fees. Understanding how ATM fees work puts you in control and helps ensure more of your money stays in your hands where it belongs.