ATM Fees: Fixed, Percentage or Tiered Surcharges
The short version
- Since March 2009, ATM owners in Australia set their own fee and charge the cardholder directly, shown on screen before the cash comes out.
- Fixed: the same amount on every withdrawal.
- Percentage: a share of the amount withdrawn, inside a minimum and maximum, so small withdrawals cost less.
- Fully tiered: a fee for every withdrawal amount, on the newest ATM software.
- The card surcharge ban does not apply to ATM fees. Your fee stays.
“Paying to get my own cash”
Cardholders don’t love ATM fees. You’ll hear it: why should I pay to get my own money?
Here’s the thing. Until the withdrawal is done and the fee is paid, the cash in the machine isn’t the cardholder’s. It’s cash someone has bought, loaded, moved and financed so it’s there, in your venue, the moment they want it. Bigger withdrawals mean more cash to load and more money tied up earning nothing. The fee pays for that service, and the cardholder sees it and agrees to it before a single note comes out.
You set the fee
Before 2009, a customer using another bank’s ATM paid a “foreign” fee to their own bank. The Reserve Bank’s reforms, from 3 March 2009, replaced that with direct charging: the ATM owner sets the fee and charges it at the machine.
The RBA wanted two things: transparency and competition. Transparency arrived. The fee is on screen before the transaction, and the customer can cancel for free. Competition is another story. Most people use the ATM that’s in front of them when they need cash, not the cheapest one across town. For a venue, that means convenience counts for more than a few cents of fee, and you have room to set a fee that reflects what it costs to keep cash on hand.
The examples below use round numbers to show how each model works. They are examples only, not Dash prices.
Fixed fee
A static amount on every withdrawal, whatever the size.
Example: $3.00 fixed fee. Fee is $3.00.
Same ATM, same $3.00.
Still $3.00.
Simple to explain, easy to compare. But a $3.00 fee on a $20 withdrawal feels steep, and a $400 withdrawal earns no more than a $20 one, even though it costs more to service.
Percentage fee, with a minimum and maximum
The fee is a share of the amount withdrawn. Small withdrawals are discounted against bigger ones, which reflects the extra cash loading and interest cost of servicing large withdrawals.
Example: 1.5%, $1.00 minimum. Fee is $1.00.
1.5%. Fee is $1.50.
1.5%, $5.00 maximum. Fee is $5.00.
The minimum keeps small withdrawals worthwhile for you. The maximum keeps big ones fair for your customer.
Fully tiered surcharging
On the newest ATM software we now offer a full tiered surcharge. You set the fee against every conceivable withdrawal amount, so you control the price of each one.
Example tier: $2.00.
Example tier: $3.00.
Example tier: $4.50.
Keep regulars’ small withdrawals cheap, and earn properly on the big ones. Whatever the model, the customer sees the exact dollar fee for the amount they chose, before the cash is dispensed, and can cancel.
For banks and credit unions
Running ATMs for a financial institution? We can run surcharge profiles against individual ATMs or locations, including blocking or discounting the surcharge by card BIN to suit your partner arrangements.
That gives you terminal-level control without complicated host-driven set-ups. If you want one rule across the whole network, host-driven surcharge profiles are available too.
The card surcharge ban doesn’t touch your ATM fee
From 1 October 2026, merchants can’t add a surcharge to eftpos, Mastercard or Visa card payments. That ban is about paying for goods and services by card.
An ATM fee is a charge for a cash withdrawal, under the separate ATM regime. The card surcharge ban does not apply to ATM surcharges, so your ATM fee stays. And with card fees now coming out of your margin, every customer who pays cash from your ATM is a sale without a card fee.
Getting the most from your fee
- Know your withdrawals. If most are small, a percentage or a low first tier keeps them coming. If big withdrawals are common, make sure your fee reflects their cost.
- Know the neighbourhood. A fee well above nearby ATMs can send customers down the road. Convenience earns you some room, not unlimited room.
- Keep it clear. Customers accept a fee they understand.
- Review it. Look at your withdrawal amounts after a few months and fine-tune.
How Dash helps
- Every fee model: fixed, percentage with minimum and maximum, or full tiered surcharging on the newest ATM software.
- For financial institutions: surcharge profiles by ATM or location, BIN-based blocking or discounts, or network-wide host-driven profiles.
- Your brand on the screen, with on-screen advertising for your own promotions.
- Managed for you: installation, cash logistics, fault alerts, reconciliation and national field service, all visible in the Dash web portal.
See the options to buy an ATM, or talk to us about services.
FAQ
Who sets the ATM fee?
The ATM owner. Since the Reserve Bank’s 2009 reforms, the owner sets the fee and charges it to the cardholder at the machine.
Do customers see the fee before they pay?
Yes. The fee is shown on screen before the transaction is finalised, and the customer can cancel at no cost.
Can I charge a percentage or a tiered fee?
Yes. Dash offers fixed fees, percentage fees with a minimum and maximum, and full tiered surcharging on the newest ATM software.
Does the 1 October 2026 surcharge ban stop ATM fees?
No. The ban is about surcharges on card payments for goods and services. It does not apply to ATM surcharges.
Dash ATM has built and managed ATM networks across Australia since 2012, led by founder Paul Wrigley, in the ATM industry since 2002. Keep cash local.
Sources: RBA Bulletin, April 2009: The Introduction of Direct Charging for ATMs · RBA Bulletin, June 2010: Reform of the ATM System, One Year On · RBA: Review of Retail Payments Regulation, Conclusions Paper FAQs, March 2026