ATM fees are huge money generators for banks. Originally, ATMs were intended to reduce banks' expenses by automating tasks that previously involved a live teller. Now many banks charge fees for the use of ATMs.

There are several different types of ATM fees. Some banks charge you a fee just to have the use of an ATM card. Others charge ATM access fees, which are weekly, monthly, or yearly fees in addition to the regular account fees. When you use an ATM that is not owned by your bank, you'll incur a surcharge, which is a fee in addition to fees charged by your own bank, a practice called double dipping.

Out-of-Network Fees

Using an ATM that is not in your bank's network is a costly convenience. Here's how it works: You withdraw $20 from an ATM that doesn't belong to your bank and incur a $1.50 fee. Your bank then adds an out-of-network surcharge of $3. You've just paid service fees totaling 22.5 percent of your withdrawal amount to the two banks to access $20 of your own money.

Banks may also charge a fee, commonly $1.50 to $2.00, if you use an ATM to get a cash advance on your credit card. In addition, the credit card company will probably charge a fee for the cash advance, usually around 3 percent of the total advanced, with a minimum fee of $5. To make things worse, cash advances on credit cards may have a higher interest rate and be paid off last.

The ATM can be an expensive way to check your balance or recent transactions, at $1.00 or $1.50 a pop at some banks. The receipt you get when you make another type of ATM transaction, such as withdrawing cash or making a deposit, often shows your account balance, so why pay extra?

Minimizing ATM Fees

You probably don't keep track of what you pay in ATM fees over the course of a year, but you can see how these fees can add up quickly, so it could be a substantial amount. Simply being aware of how you use the ATM can help you plan ahead so you can avoid some of the costs. Here are a few other ideas for avoiding fees:

• Establish an account at a bank with a large ATM network so you don't get stuck using out-of-network ATMs.

• Plan cash withdrawals when you can access your own bank's ATMs, or look for ATMs that don't impose a surcharge (usually indicated on the ATM).

• Withdraw large amounts of cash less often rather than small amounts more often.

• If your bank doesn't charge to use a live teller, use a teller instead of the ATM.

• Use personal checks instead of paying cash.

• Double up transactions, such as using your ATM card to get cash back when you make a purchase at a point-of-sale cash register.

• When traveling, use travelers' checks, personal checks, or credit cards.

• Avoid higher-cost ATMs found in convenience stores, hotels, casinos, restaurants, and airports.