Finance: These Machines Inflate Your Fees, Beware!

Independent ATMs are on the rise, but they hide additional fees that could burden your budget. While traditional ATMs disappear, these new bank-unaffiliated machines are becoming more prevalent. Seemingly convenient, they can significantly increase your banking fees. Here’s how to avoid these traps and protect your finances.

A response to the disappearance of bank ATMs

Since 2020, a new type of ATM has appeared in France, disrupting an already rapidly changing banking landscape.

These ATMs, installed by private companies like Loomis or Brink’s, are not linked to any particular bank. In just three years, their number has increased sixfold, from 121 in 2020 to 679 in 2023. This phenomenon can be partly explained by the gradual disappearance of traditional ATMs.

Between 2022 and 2023, no fewer than 1,664 withdrawal points were removed in France, according to the Banque de France. This trend mainly affects sparsely populated areas, where banks are closing branches deemed unprofitable.

Although electronic payments are growing significantly, nearly 50% of purchases in 2023 are still made in cash.

To address this shortage, some municipalities opt for these independent ATMs, supposed to guarantee constant access to cash.

While this solution may seem advantageous at first glance, it hides a major problem: these ATMs are often far more expensive than traditional bank ones. Users should therefore be extra cautious before using them.

Bank fees: how these ATMs can affect your budget

One of the best-known companies in the independent ATM sector is Euronet. This name probably brings back bad memories for those who have tried to withdraw cash abroad: fees can reach up to 4.99 euros per transaction.

Although the fees are less exorbitant in France, these machines are not free. Indeed, withdrawing cash from a Euronet, Loomis or Brink’s ATM can incur banking fees known as “off-network withdrawal fees.”

What is an off-network withdrawal? It’s a withdrawal made at an ATM that doesn’t belong to your bank. Most banks allow a few free off-network withdrawals per month – often three. Beyond this threshold, they charge a fee.

For example, Société Générale charges 1.20 euros per additional withdrawal, while LCL charges 1.50 euros from the fourth withdrawal onwards.

According to a study by Panorabanques, fees related to off-network withdrawals increased on average by 10.6% in 2024.

This is a significant increase, especially for people living in areas where independent ATMs have become the only available option.

To avoid these costs, it is advisable to consolidate withdrawals. Withdrawing larger sums of money in one go rather than making multiple small withdrawals can help limit fees.

How to recognize and avoid these ATMs

Independent ATMs, while useful in some situations, can be easily identified. The “Euronet” logo is the most well-known, but others like Loomis or Brink’s are also present in the market.

These ATMs are often found in strategic locations, such as city centers or tourist areas, thus attracting unsuspecting users.

To avoid falling into the trap of additional fees, it’s essential to adopt a few good practices.

First, clearly identify the logos on ATMs before making a withdrawal. Favor ATMs affiliated with your bank whenever possible. Use banking apps to locate free ATMs nearby. Additionally, it may be wise to plan your withdrawals to maximize the number of free withdrawals offered by your bank each month.

Finally, even if cash payments are still common, it might be worth considering alternative payment methods, such as debit cards or mobile payment solutions, to avoid frequent use of ATMs. Indeed, withdrawal fees, though often modest, can quickly add up and weigh heavily on your finances. Meanwhile, Louisiana says “yes” to Bitcoin for paying public services!