Millions of Americans who’ve used ATMs over the past few years may soon get an unexpected bonus in their bank accounts a $25 payment as part of a nationwide $1.23 million settlement resolving claims over improper ATM fees.
The agreement, approved this month by a federal court in Illinois, caps off a multi-year investigation into alleged violations of federal banking disclosure laws by a network of ATM operators and partner banks. According to court filings, users were charged hidden “network access” and “balance inquiry” fees that were not properly disclosed at the time of withdrawal.
Under the terms of the settlement, affected consumers won’t need to file claims refunds will be automatically distributed through participating banks and credit unions in early 2026. Each eligible customer will receive a flat $25 credit, regardless of how many ATM transactions they made during the period.
“This is about fairness and transparency,” said Angela Michaels, a spokesperson for the Consumer Financial Protection Bureau (CFPB). “Consumers deserve to know exactly what they’re being charged when they use an ATM and this case helps reinforce that principle.”
While the total payout is modest, the case underscores growing scrutiny of hidden banking fees, a topic that has become a political flashpoint in recent years.
Here’s what you need to know about the case, who’s getting paid, and what it means for the future of consumer banking.
ATM Fees Settlement – Overview
| Settlement Amount | $1.23 million |
| Individual Payment | $25 (automatic distribution) |
| Eligible Users | ATM customers charged undisclosed fees between 2021–2024 |
| Overseeing Agency | Consumer Financial Protection Bureau (CFPB) |
| Defendants | Five ATM network operators and three partner banks |
| Approval Date | November 2025 |
| Payout Schedule | Early 2026 |
| Estimated Affected Users | About 49,000 consumers nationwide |
| Distribution Method | Automatic credit or mailed check |
| Settlement Fund Administrator | Federal Settlement Compliance Office (FSCO) |
Background: The Hidden Fee Problem
ATM fees have long been a sore point for consumers. While federal law requires that fees be disclosed on-screen before a transaction, investigators found that some machines failed to display accurate or complete fee information during 2021–2023.
The affected ATMs were operated by MetroPay Systems, ATM Plus LLC, and several smaller networks that serviced convenience stores, gas stations, and independent retailers. Consumers reported being charged “network adjustment” or “balance inquiry” fees they never authorized.
“In many cases, the posted screen would show a $2.50 fee, but customers were charged $3 or more after the fact,” explained Daniel Ruiz, Director of Enforcement at the CFPB. “Those discrepancies, while small individually, added up to millions in unauthorized charges.”
The complaint also alleged that some partner banks received a percentage of these fees, despite failing to ensure compliance with disclosure standards.
About the Lawsuit
The case, officially titled In re ATM Network Fee Disclosure Litigation, was filed in U.S. District Court for the Northern District of Illinois in 2023. Plaintiffs argued that the ATM networks violated the Electronic Fund Transfer Act (EFTA), which requires clear, upfront disclosure of all transaction costs.
Though the defendants denied wrongdoing, they agreed to the $1.23 million settlement to “avoid further litigation costs.” The payout will cover direct consumer refunds, administrative expenses, and penalties paid to federal regulators.
“We’re satisfied with this outcome,” said U.S. District Judge Carol Nunez, who approved the agreement. “It ensures restitution for consumers while holding service providers accountable for transparency.”
Consumer advocacy groups say the case sets an important precedent.
“Hidden fees are a stealth tax on working Americans,” said Paul Reynolds, Executive Director of the National Consumer Rights Coalition. “This settlement sends a message that every cent must be disclosed before a customer hits ‘accept.’”
Who Qualifies for the $25 Payment?
The settlement covers consumers who used participating ATMs between January 2021 and June 2024 and were charged unlisted or inaccurately displayed fees. Eligibility will be determined through bank transaction records, meaning customers do not need to submit claims.
The Federal Settlement Compliance Office (FSCO) confirmed that participating financial institutions will begin processing refunds automatically by March 2026.
“Consumers won’t have to lift a finger,” said Rebecca Tran, FSCO Deputy Director. “Payments will appear as direct credits in checking accounts or arrive as mailed checks for closed accounts.”
The refund will be uniform $25 per affected customer rather than proportional to the number of ATM transactions. Officials say the goal was to simplify the process and ensure quick payment.
Hidden Banking Costs Under Fire
The ATM settlement is the latest in a wave of actions against what regulators call “junk fees” hidden or unnecessary charges imposed by financial institutions, airlines, ticketing companies, and others.
Earlier this year, the CFPB fined two major banks for overdraft fee “reordering” practices and late-payment penalties. Together, these enforcement efforts have returned more than $4.5 billion to consumers since 2020.
Economists say these settlements are as much about restoring public trust as they are about money. For most consumers, $25 isn’t life-changing but it signals accountability in a system often seen as opaque.
How Banks and ATM Operators Are Responding?
Following the settlement, ATM network operators have begun updating their fee disclosure software and revising signage requirements at retail locations. Partner banks have also been instructed to audit their third-party agreements to ensure compliance.
“We take consumer trust seriously,” said James Harper, spokesperson for MetroPay Systems, one of the named defendants. “While we disagree with some of the allegations, we’ve already implemented systemwide changes to improve fee transparency.”
The American Bankers Association (ABA) issued a statement supporting stronger disclosure standards but urged regulators not to overburden smaller community banks.
“Fairness goes both ways,” the ABA said. “We must protect consumers without creating compliance costs that make it harder for small banks to serve local customers.”
What Might Happen Next?
The settlement still requires a brief implementation period before payments are distributed. The FSCO will monitor compliance and issue a final report by late 2026 summarizing refund totals and program efficiency.
Officials also hinted that new disclosure guidelines for digital banking and mobile ATM services could follow later that year. For consumers, the immediate takeaway is simple: if you used an ATM in the past few years, a small refund may be on the way no paperwork, no claim forms, and no action required.
ATM Settlement Summary
| Settlement Value | $1.23 million |
| Average Payout | $25 per eligible user |
| Eligibility Period | Jan 2021 – Jun 2024 |
| Automatic Payment Date | March 2026 |
| Regulatory Oversight | CFPB & FSCO |
| Main Violation | Incomplete ATM fee disclosures |
| Defendants Include | MetroPay Systems, ATM Plus LLC, and partner banks |
| Court | U.S. District Court, Northern District of Illinois |
| Consumers Affected | ~49,000 nationwide |
| Distribution Method | Direct bank credit or mailed check |
FAQs
Do I have to apply for the $25 refund?
No, payments will be made automatically through banks.
When will I receive the refund?
Credits are expected to appear by March 2026.
How do I know if I’m eligible?
If you used one of the affected ATMs between 2021–2024, you’re likely included.
What was the issue behind the lawsuit?
ATM operators failed to properly disclose or display all transaction fees.
Does this affect future ATM fees?
Yes, operators must now provide clear, real-time fee disclosures nationwide.