How Bitcoin ATMs Work: Fees, Limits, State Laws and Scams (2026)

A bitcoin ATM is a kiosk that takes your cash and sends bitcoin to a wallet address you scan, minus the operator's fee and markup, which in several US states may legally run to 15% or 18% of the purchase. It is the most expensive common way to buy bitcoin and the payment route scammers use most: the FBI's 2025 report counted 13,460 crypto-ATM fraud complaints and $389 million in reported losses, about two-thirds of it from people aged 60 and over. Use one only for a small, deliberate cash purchase you chose yourself. If anyone told you to go to a bitcoin ATM, it is a scam.

How a bitcoin ATM transaction works

A bitcoin ATM, also called a crypto kiosk or BTM, is usually a free-standing machine in a convenience store, petrol station or mall. Most only sell bitcoin; some also buy it back for cash. A typical purchase runs like this:

1. Identify yourself. Most machines ask for a phone number and send a code. At higher amounts, operators ask for ID, and many states now cap how much one customer can spend per day.
2. Give a destination. You scan the QR code of a bitcoin wallet address, usually from a wallet app on your phone. Some machines print a paper wallet instead.
3. Insert cash. The screen shows the exchange rate and the amount of bitcoin you will receive.
4. Confirm. The operator sends bitcoin to that address. Once it is on the blockchain, it cannot be reversed.

Everything hinges on step 2. The bitcoin goes to whatever address is scanned. If a caller or text supplied that QR code, the money goes to them, which is exactly how the scam works.

What it costs: markup plus fee, with a worked $500 example

Bitcoin ATM pricing is less transparent than an exchange's. Operators earn from a fee, a markup on the exchange rate, or both. The largest US operator, Bitcoin Depot, says in its 2025 annual report that it applies a "higher markup" to kiosk transactions, but it does not publish one percentage there. Independent figures of 10% to 20% or more are commonly reported; we could not verify any operator's current rate on its own site, so treat that range as indicative.

What is verifiable is the legal ceiling in some states. Bitcoin Depot's annual report lists kiosk fee caps of 18% in Illinois and Nebraska, the greater of $5 or 18% in Arkansas, 15% in Connecticut and Oklahoma, the greater of $5 or 15% in California, and the greater of $5 or 3% in Maine. Missouri, it says, sets no specific limit.

On $500, an 18% cap allows up to $90 of fees and markup; a 15% cap allows up to $75. The same $500 costs up to $11.25 as a Cash App market buy (1.5% plus a spread of up to 0.75%), $6 as a market order on Gemini ActiveTrader at its 1.20% entry taker rate, and $4 on Kraken Pro at 0.80%. Even at the bottom of the commonly reported ATM range, a kiosk costs several times more than an exchange.

The only number that matters at a machine is how much bitcoin you receive for your cash, shown before you confirm. Compare it with the market price on any reputable app. If the machine does not show the amount clearly, walk away.

Limits and ID by amount

Because kiosks became the leading channel for this fraud, states have moved to cap them. Limits come in two forms: a cap on how much one customer can spend per day, and a cap on fees. Some state laws have also required refunds for defrauded new customers within a short window, as Minnesota's did before its ban.

Most entries above come from Bitcoin Depot's own summary of state law in its annual report, filed in March 2026, so confirm the current statute or your state regulator's page before relying on a specific figure. A dash means the summary gave no figure for that column, not that no rule exists.

State laws capping kiosk transactions

Minnesota went furthest. Its 2026 law, chapter 65, bans installing, operating or maintaining a virtual-currency kiosk from 1 August 2026, and requires machines to be removed from public access by 31 December 2026. Before that, Minnesota had capped new customers at $2,000 a day and required full refunds of fraud-induced transactions within a 72-hour new-customer window; the ban repealed those rules. The city of St. Paul had already banned kiosks from December 2025, according to Bitcoin Depot's filing.

Other states have chosen limits rather than bans. California's $1,000 daily cap and 15% fee ceiling are among the strictest, and several states cap daily spending at $1,000 to $3,000. If you live elsewhere, check your state's financial regulator: this area changes quickly, and the absence of a state from the table does not mean there are no rules.

Bitcoin ATM scams: the script and the numbers

The script barely changes. Someone contacts you unexpectedly, by phone, text, email or a pop-up, claiming to be your bank's fraud team, a government agency, the police, a utility, or tech support. They invent an emergency: your account is compromised, there is a warrant, you owe a fine, your computer is infected. Then comes the tell. They tell you to withdraw cash and take it to a bitcoin ATM, often staying on the phone, sometimes coaching you to lie to bank staff about why you need the money. They send a QR code, and you scan it at the machine.

The FBI's Internet Crime Complaint Center recorded 13,460 complaints involving crypto ATMs and kiosks in 2025, with $389 million in reported losses. Complaints rose 23% and losses 58% from 2024. People aged 60 and over filed 6,188 of those complaints and reported $257.5 million of the losses, about two-thirds. Earlier FTC data told the same story: bitcoin ATM fraud losses rose nearly tenfold from 2020 to 2023 and topped $65 million in the first half of 2024 alone, when people over 60 were more than three times as likely as younger adults to report one, and the median reported loss was $10,000.

These are reported losses, so the true total is almost certainly higher. A second wave often follows: the FBI also logged 10,516 complaints and $1.4 billion in losses from fake "recovery" services in 2025, which promise to get stolen crypto back for an upfront fee. The FTC's advice is short: only scammers demand payment in cryptocurrency. If you or someone you know has been targeted, report it at ReportFraud.ftc.gov and to the FBI's IC3, and tell your bank. Our guide to common bitcoin scams covers the other patterns.

If an older relative mentions an urgent call about their bank or a warrant, or asks how a bitcoin machine works, treat it as an active scam and help them stop before any cash goes in. One conversation with someone they trust is often enough to break the script.

Finding a bitcoin ATM near you, and what to check first

Map apps and operators' own locators will show the nearest machine; Bitcoin Depot alone reported about 9,700 kiosks across 48 US states and other countries at the end of 2025. Before you use one, check three things. First, that nobody else suggested it: if a caller sent you, stop. Second, the amount of bitcoin the screen offers for your cash, compared with the market price on a reputable app. Third, that the wallet address is your own, from a wallet you set up yourself. If any check fails, walk away.

Selling bitcoin at an ATM

Some kiosks buy bitcoin for cash. They tend to carry the same heavy markup and lower limits as buying, and fewer machines offer it. Our guide to selling bitcoin and cashing out shows the cheaper route through a regulated exchange and your bank.

Cheaper alternatives

For almost everyone with a bank account, an exchange or an app costs far less and leaves an audit trail. These three publish their fees:

Kraken Pro

Kraken Pro charged 0.80% for market orders and 0.40% for limit orders at its entry tier on 9 October 2026. Bank (ACH) deposits cost nothing, but coins bought with them cannot leave Kraken for a week. Kraken is closed to New York and Maine residents.

Gemini ActiveTrader

Gemini's ActiveTrader schedule starts at 0.60% maker and 1.20% taker, falling to 0.40% and 0.80% from $10,000 of 30-day volume. Gemini is a New York-chartered trust company.

Coinbase Advanced

On Coinbase Advanced you trade the order book directly, with no spread and a tiered maker or taker fee shown before you confirm. Coinbase's one-tap buy screen costs more, because it layers a fee on top of a spread. Coinbase holds a New York BitLicense.

If cash is your only option

If you genuinely have no bank access and want a small amount of bitcoin, an ATM can work, provided nobody else is involved. Use your own wallet, start with a small amount, compare the bitcoin offered with the market price, and keep the receipt. Never use a machine while someone is on the phone with you. Our step-by-step buying guide and the full guide to buying bitcoin safely cover the cheaper routes once you have a bank account or card.