Most online banks do not own ATM networks, but they offer cash access through partner ATMs or fee reimbursement
Online banks operate without physical branches, so they do not maintain their own ATM networks the way traditional banks do. Instead, they handle cash withdrawals in three main ways: they reimburse you for out-of-network ATM fees, they partner with ATM networks you can use for free, or they offer a combination of both. Which option you get depends on which online bank you choose.
The most common setup is a reimbursement model. Banks like Ally and Charles Schwab refund ATM fees charged by any ATM operator, anywhere in the world. You pay the fee at the moment of withdrawal, then the bank credits it back to your account within one to three business days. This works if you do not mind the temporary charge or if you withdraw cash infrequently.
Other online banks partner with specific ATM networks. Discover, for example, gives you access to a network of over 60,000 ATMs through Allpoint. You use those ATMs with no fee. The catch is that you can only use the partner network—if you need cash from an ATM outside that network, you either pay the fee yourself or use a different method.
Key Takeaways
- Online banks do not own ATM networks but provide cash access through fee reimbursement, partner networks, or both.
- Fee reimbursement models refund any ATM charge within one to three business days, but you pay the fee upfront.
- Partner network access lets you withdraw cash free from thousands of ATMs, but only from the specific network your bank uses.
- Some online banks offer both options, giving you flexibility depending on where you are and how often you need cash.
- Before opening an online bank account, check which ATM access method they use and whether it matches where you live and travel.
How fee reimbursement works
When your online bank uses a reimbursement model, you withdraw cash from any ATM—your bank's competitor, a convenience store, an airport, anywhere. The ATM operator charges you a fee (typically $2 to $3, sometimes more). You pay it immediately. Your online bank then credits that exact fee back to your account automatically, usually within one to three business days.
This system works well if you rarely need cash or if you travel and want maximum flexibility. You are not restricted to a specific network. The downside is the timing: you are out of pocket for the fee temporarily, and if you withdraw cash multiple times in a week, you might see several pending credits before they all post. Some banks cap the reimbursement at a certain number per month (though most do not), so check your bank's policy before you open an account.
Partner ATM networks and how to find them
Many online banks partner with third-party ATM networks to give you free access without reimbursement delays. The largest networks are Allpoint (60,000+ ATMs), MoneyPass (40,000+ ATMs), and CO-OP (30,000+ ATMs). Your bank tells you which network it uses, and you can search for participating ATMs on the network's website or through your bank's mobile app.
Partner networks are most useful if you have a predictable routine—you know where you shop, where you work, and which ATMs are nearby. You can confirm those ATMs are in your bank's network before you sign up. The trade-off is less flexibility: if you travel to a place where your network has no ATMs, you either pay an out-of-network fee or find another way to get cash.
Some online banks use multiple networks. Axos Bank, for example, partners with both Allpoint and MoneyPass, which together cover over 90,000 ATMs. This gives you more options without the fee reimbursement delay.
Comparing reimbursement and partner networks
| Feature | Fee Reimbursement | Partner Network |
|---|---|---|
| Cost to you | Pay fee upfront, credited back in 1–3 days | No fee at partner ATMs |
| ATM flexibility | Use any ATM anywhere | Limited to partner network |
| Best for | Frequent travelers, unpredictable cash needs | Routine users, predictable locations |
| Timing | Reimbursement takes a few days | Instant—no fee charged |
Online banks that offer both options
A few online banks give you both reimbursement and partner network access, letting you choose based on the situation. Charles Schwab reimburses all ATM fees worldwide and also partners with MoneyPass for free withdrawals. Ally reimburses all fees and partners with Allpoint. This dual approach means you get the flexibility of reimbursement plus the convenience of a partner network when you need it.
If you value maximum control and do not want to think about ATM fees at all, these dual-option banks are worth considering. You pay nothing either way—you just choose which method is most convenient in the moment.
What to do if your online bank has limited ATM access
If your online bank's ATM network does not cover your area well, you have several options. First, check whether the bank reimburses out-of-network fees—if it does, the limited network becomes less of a problem. Second, look for a bank with a larger partner network or multiple partnerships. Third, consider whether you actually need frequent cash access: if most of your spending is digital, a limited ATM network might not matter.
You can also use your debit card to get cash back at grocery stores, pharmacies, and other retailers that offer the service. This is free and does not depend on ATM networks. Some online banks also offer cash deposit services through partner retailers, which lets you add money to your account without visiting a branch.
How to check ATM access before opening an account
Before you open an online bank account, visit the bank's website and look for the ATM access section. It will tell you whether the bank uses reimbursement, a partner network, or both. If it uses a partner network, the bank will name the network (Allpoint, MoneyPass, CO-OP, etc.). Visit that network's ATM locator tool and search for ATMs near your home, workplace, and places you travel to regularly. If you find enough ATMs, the network will work for you. If not, look for a bank with reimbursement or a different network.
Many online banks let you open an account online in minutes, but you can also call customer service to ask specific questions about ATM access before you commit. Some banks offer a trial period or let you close the account within a certain window if you change your mind.
Frequently Asked Questions
Can I withdraw cash from a traditional bank's ATM if I use an online bank?
Yes, but it depends on your online bank's policy. If your bank reimburses ATM fees, you can use any ATM, including those owned by traditional banks—you just pay the fee and get it credited back. If your bank uses a partner network, you can only use ATMs in that network for free. Traditional banks are not automatically part of online bank networks.
How long does it take for ATM fee reimbursement to show up?
Most online banks credit ATM fees within one to three business days. Some are faster—a few credit within 24 hours. Check your bank's policy to know what to expect. The reimbursement appears as a separate credit in your account, not as a reversal of the original charge.
What if I travel internationally and need cash?
If your online bank reimburses ATM fees worldwide (like Charles Schwab and Ally do), you can withdraw from any ATM abroad and get the fee back. If your bank uses a partner network, check whether that network has ATMs in the countries you are visiting—most do not. For international travel, a reimbursement-based bank is usually the better choice.
Do online banks charge fees for using out-of-network ATMs?
The online bank itself does not charge you a fee—the ATM operator does. Your online bank either reimburses that fee or does not, depending on its policy. If your bank uses a partner network and you use an ATM outside that network, you pay the operator's fee and the bank does not reimburse it.
Can I deposit cash at an online bank ATM?
Most online bank ATMs do not accept cash deposits because online banks do not own ATM networks. However, some online banks partner with retailers (like Walmart or CVS) where you can deposit cash directly into your account. Check your specific bank's deposit options before you open an account.