Understanding consumer habits at retail ATMs

ATM independent sales organizations (ISOs), operators and portfolio managers are constantly seeking new ways to drive value, increase transaction volume and strengthen partnerships with retailers. But one piece of the puzzle often remains unexplored: how consumers actually interact with ATMs inside stores—and what motivates them to use retail ATMs.

To shed light on this, NCR Atleos commissioned a comprehensive research study focused on consumer behavior at convenience store ATMs across six US states. In 2024, the market research firm Creative Consumer Research (CCR) conducted 412 one-on-one intercept interviews with ATM users to uncover what drives foot traffic, how ATM access influences purchase behavior and the role surcharge-free transactions play in consumer decision-making.

The findings offer valuable insights that can help ISOs and ATM deployers make smarter business decisions.

Key trends for retail ATM usage

Across all locations, key trends emerged, illustrating that having an in-store ATM can help drive foot traffic and sales:

• 88% of survey respondents said they knew there was an ATM in the store
• 28% of survey respondents said they visited the store specifically to use the ATM
• 55% of survey respondents said they made a purchase while in the store to use the ATM
• 35% of survey respondents said they would shop at the store less frequently if the ATM was removed

Convenience was a core driver for in-store ATM use:

• 57% of survey respondents said they drove five miles or less to the store where they used the ATM
• 38% of survey respondents said they use the ATM at least once a week

On average, survey respondents withdrew $68 from the ATM, which is significantly lower than the average $198 ATM withdrawal the Federal Reserve reported in its most recent study that included this data. This suggests that customers who transact at retail ATMs may use cash for small, immediate purchases.

Interestingly, the reasons for visiting the store varied notably by market. In El Paso, Texas, a majority of respondents (65%) said they visited primarily to use the ATM, while only 29% came to both shop and use the ATM. In contrast, in Phoenix, Arizona, the responses were more balanced: 45% visited mainly for the ATM, and 50% came for both shopping and ATM use.

The survey also revealed that most ATM users prioritize safety and fee-free access when selecting which ATM to use. Most respondents chose “free to use” and “secure/safe to use” when asked why they chose the ATM they did.  

A separate survey underscored the demand for fee-free cash access:

• 53% of survey respondents said they chose to use the ATM because they knew they wouldn’t be charged a fee to withdraw cash
• 40% of these respondents used a network ATM and 13% used a bank-branded ATM

American consumers clearly prefer fee-free ATMs, often going out of their way to find machines that offer surcharge-free withdrawals and deposits. This behavior frequently leads them to use ATMs located in retail stores, which are commonly operated by ISOs and other independent ATM deployers.

How to drive business with fee-free ATMs

Of course, operating an ATM comes with real costs—hardware, cash handling, revenue sharing, theft/losses and ongoing maintenance. It’s understandable that many ISOs and other independent operators pass these costs on to users through surcharges, and in some countries, that’s the norm.

But in the US, where consumers are especially fee-averse, many ATM operators are finding creative ways to offer fee-free access—and still protect their bottom line. Following are some of the most effective approaches.

Partnering with financial institutions (FIs) or fintechs: Independent ATM deployers can work with banks or credit unions to brand ATMs and provide those institutions’ customers with surcharge-free withdrawals—enhancing visibility and trust while driving more transactions.

Another effective approach is collaborating with fintech apps, such as digital wallets or neobanks, to offer their users fee-free access as part of a seamless, tech-forward banking experience.

Joining an ATM network: Becoming part of a surcharge-free ATM network, like Allpoint, is a smart way for independent ATM deployers to offer fee-free access while expanding their user base. These networks allow cardholders from participating institutions to withdraw cash without paying a fee.

Cooperating with retailers: Independent ATM deployers can work with host retailers to offer fee-free cash access as a customer incentive. For example, the retailer can cover the ATM fee for customers who make a minimum purchase in-store. Another option is to integrate the ATM with the store’s loyalty program, allowing members to withdraw cash without paying a fee.

Offering advertising: ISOs can generate revenue by displaying targeted ads on the ATM screen during transactions or on an ATM topper, helping to reduce or eliminate the need for surcharge fees. They can also include promotional offers or coupons from advertisers on printed receipts, creating an additional stream of income to offset access fees.

Gaining insights into ATM user behavior

Understanding ATM usage habits can significantly help ISOs and other independent ATM deployers build stronger partnerships with retailers and improve foot traffic for both the store and ATM. By analyzing how, when and why consumers use ATMs, deployers can identify the variables that attract high transaction volumes. This can also help ISOs present a compelling value proposition to retailers considering in-store ATMs.

The findings from the NCR Atleos study highlight a powerful opportunity for ATM deployers and independent operators: by gaining a deeper understanding of how consumers interact with in-store ATMs, businesses can make more informed decisions about placement, partnerships and service offerings.

As the financial and retail landscapes continue to evolve, those who prioritize consumer experience—especially around convenience, safety and cost—will be best positioned for growth. Retail ATMs are more than just cash machines; they’re strategic touchpoints that, when deployed thoughtfully, can deliver real value to both consumers and businesses.

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