How to Choose the Right ATM Surcharge for Your Business
Quick answer: Set your ATM surcharge close to what nearby ATMs charge. Customers accept a fair convenience fee, but a fee well above the local norm sends them to the next machine and lowers your total income. The surcharge must be shown on screen before the customer completes the withdrawal, and you can adjust it later if usage changes.
What is an ATM surcharge?
The surcharge is the fee a cardholder pays to use an ATM that isn’t owned by their bank. It is separate from any fee their own bank may charge. The surcharge is the main source of ATM income for the owner or placement partner.
Want help setting your fee? We check what nearby ATMs charge before programming your surcharge.
Who decides the surcharge?
On a merchant-owned ATM, you choose the fee. On free placement and partnership programs, the fee is agreed between you and the ATM provider.
How do you pick the right fee?
- Check nearby ATMs — in stores, gas stations and banks within walking or short driving distance.
- Think about convenience — if yours is the only ATM nearby, or customers can’t easily leave (bars, events, laundromats), a fee in line with the area is usually accepted.
- Watch volume after changes — if withdrawals drop after an increase, the higher fee may be costing you income.
Why can a higher surcharge earn less?
Income is fee × number of withdrawals. A slightly lower fee that keeps customers using your ATM can earn more than a higher fee that pushes them elsewhere. Compare monthly totals, not just the fee.
Does the surcharge have to be disclosed?
Yes. The fee must be disclosed on the ATM screen before the transaction is completed, giving the customer the option to cancel. Your ATM is programmed to show this automatically.
When should you change your surcharge?
- A new ATM opens nearby
- Your withdrawal volume changes noticeably
- Your processing costs change
- Seasonal traffic shifts, such as tourist season in Central Florida
Frequently Asked Questions
Can I change my ATM surcharge later?
Yes. On a merchant-owned ATM the fee can be reprogrammed; on placement programs, ask your provider.
Do customers pay the surcharge or the business?
The cardholder pays the surcharge when they withdraw cash.
Is a $0 surcharge a good idea?
Usually not for income — but some businesses choose a low fee to attract customers. Most charge a fee in line with the local area.
Need help with an ATM for your Central Florida business? myFloridaATM.com installs, places, sells, leases and repairs ATMs across Orlando, Winter Park, Kissimmee, Daytona Beach, Ocala and Davenport. Installation is free. Call (786) 554-3977 or request a free quote.
