How the ATM Surcharge Settlement Works and What You Might Receive
What the ATM surcharge settlement is and who it affects
The ATM surcharge settlement is a class action lawsuit settlement that requires certain banks to pay money back to customers who were charged fees for using ATMs outside their bank's network. The settlement came from a case against major banks — primarily Bank of America, Chase, and Wells Fargo — over the practice of charging customers when they withdrew cash from another bank's machine.
If you held an account at one of these banks and paid an out-of-network ATM fee between specific dates (the date range depends on which bank), you may be part of the settlement class. You do not have to do anything to receive money — the settlement administrator will identify may be able to access account holders from bank records and send payments automatically.
The amount each person receives depends on how many valid claims are submitted and how many may be able to access customers are identified. Individual payments are typically small — often between $5 and $25 per person — because the settlement money is divided among a large number of people.
Key Takeaways
- The settlement pays back ATM surcharges charged by Bank of America, Chase, Wells Fargo, and some other banks to customers who used out-of-network machines.
- You do not need to submit a claim form; the settlement administrator identifies may be able to access customers from bank records and sends payments automatically.
- Payments are mailed by check or deposited directly to your bank account, depending on the settlement terms and what contact information the bank has on file.
- Individual payments are typically small because the settlement fund is divided among thousands or tens of thousands of may be able to access customers.
- If you moved or changed banks, you may need to update your address or banking information with the settlement administrator so the payment reaches you.
How the settlement administrator identifies you and sends payment
The settlement administrator — a neutral third party hired to manage the case — receives a list of may be able to access account holders from each bank's records. The administrator uses the name, address, and account information the bank has on file to locate you and send your payment. This is why you do not have to file a claim or prove anything yourself; the bank already knows you were charged the fee.
Payments are typically sent by check mailed to your last known address on file with the bank. Some settlements also offer the option to receive payment by direct deposit if you provide banking information. If you have moved since you held the account, the check may not reach you, which is why updating your address with the settlement administrator is important if you receive notice of the settlement.
The settlement notice — a letter or postcard explaining the settlement, the payment amount, and how to claim it — is usually mailed to the address the bank has on record. Read this notice carefully, as it will tell you the exact deadline to claim your payment, the settlement administrator's contact information, and whether you need to take any action.
What happens if you do not receive your payment
If you do not receive a check within the timeframe stated in the settlement notice, contact the settlement administrator directly. The notice will include a phone number and website. Have your name, the bank name, and the approximate dates you held the account ready when you call.
If the check was mailed but you never received it, the administrator can issue a replacement. If you have moved since the account was closed, you may need to provide your current address. Some settlements allow you to claim payment for several years after the initial mailing, so even if you miss the first deadline, you may still be able to receive your money.
If the settlement has closed and you did not receive payment, you generally cannot claim it after the deadline passes. This is why it is important to update your address with the bank or settlement administrator if you know you were charged ATM fees and expect to receive a settlement payment.
The difference between automatic payments and claim forms
Most ATM surcharge settlements send payments automatically to identified customers without requiring a claim form. This is called a "non-claim-based" settlement. The bank provides the list of people who paid the fee, and the administrator sends money to those people directly.
Some older or smaller settlements may require you to submit a claim form to prove you were charged the fee. If your settlement requires a claim form, the notice will explain how to submit it — usually online, by mail, or by phone. You will need to provide your name, account number, and the dates you held the account. Keep any documentation you have, such as bank statements showing the ATM charge, though most settlements do not require you to submit proof.
The settlement notice will clearly state whether you need to do anything. If it says "you do not need to do anything," your payment will arrive automatically. If it says "submit a claim by [date]," follow those instructions to receive your share.
How much money you might receive
The total settlement fund is divided among all may be able to access customers. The exact amount per person varies depending on how many people submit valid claims and how many customers the bank identifies as may be able to access. In past ATM surcharge settlements, individual payments have ranged from about $5 to $25, though some have been higher or lower.
Your payment amount also depends on how many ATM fees you were charged. Some settlements pay a flat amount to everyone in the class, while others calculate payment based on the number of fees each person paid. The settlement notice will explain how your specific payment was calculated.
Do not expect a large payment. Settlement money is divided among many people, and ATM fees themselves are typically small. The value of the settlement is that it returns money that was wrongfully charged, not that it provides a windfall.
What to do if you think you should be part of the settlement but were not contacted
If you believe you were charged out-of-network ATM fees by one of the banks involved in the settlement but did not receive a settlement notice, contact the settlement administrator or the bank directly. The administrator's contact information should be available through a simple online search for the settlement name and the bank involved.
You will need to provide proof that you held an account during the settlement period and that you were charged ATM fees. Bank statements showing the charges are the best evidence. Some settlements allow late claims if you can demonstrate you were may be able to access but were not contacted.
Be aware that settlement deadlines are firm. If the settlement period has closed and you did not submit a claim, you may no longer be able to recover the money. This is why it is important to act as soon as you receive notice or learn about a settlement you think applies to you.
Frequently Asked Questions
Do I have to pay taxes on the settlement payment I receive?
Settlement payments for refunds of fees you were wrongfully charged are generally not considered taxable income. However, tax law can be complex, and your specific situation may differ. If you receive a large settlement payment or have questions, consider consulting a tax professional or reviewing IRS guidance on settlement payments.
What if I closed my bank account years ago and moved?
Contact the settlement administrator with your current address and any information you remember about the old account — your name, approximate dates you held it, and the bank. The administrator can search their records and send your payment to your current address. Many settlements remain open for several years specifically to reach people who have moved.
Can I claim a settlement payment if I am not a U.S. citizen?
Most ATM surcharge settlements are open to anyone who held an may be able to access account at the bank during the settlement period, regardless of citizenship status. Your may be able to access is based on the account and the fees charged, not on your citizenship. If you have concerns, contact the settlement administrator directly.
What if the bank says I do not may have access to because I closed my account?
Closing your account does not disqualify you from the settlement. The settlement covers fees charged while you held the account, regardless of whether the account is still open. If you are told you do not may have access to, ask the bank or administrator to explain why and request a review of your account records.
How long does it take to receive the settlement payment after I am notified?
Payments are typically mailed within a few weeks to a few months after the settlement is approved by the court. The exact timeline depends on the settlement terms and how quickly the administrator processes payments. The settlement notice will include an expected payment date or timeframe.