How do bitcoin ATMs work? Fees, state caps and the scam numbers from the FBI and FTC
How bitcoin ATMs work, their fees and scams
A bitcoin ATM sells bitcoin for cash and sends it to a wallet address the customer supplies. CoinFlip's terms price purchases at a 21.90% transaction fee. The FBI's IC3 recorded 13,460 complaints and $389 million in losses tied to crypto ATMs in 2025, and California caps kiosk fees at the greater of $5 or 15%.
Piece published Reviewed by CryptoGuardz Register Desk, editorial desk
A bitcoin ATM takes cash, buys bitcoin at a price the operator sets, and sends it to a wallet address the customer scans. The fee sits inside that price. CoinFlip's terms, effective 30 September 2026, set a "Transaction Fee: 21.90% to purchase cryptocurrency and 4.99% to sell cryptocurrency". The FBI's IC3 logged 13,460 complaints and $389 million in losses involving crypto ATMs in 2025.
The machine works as advertised. The problem is who is standing at it and why. Federal agencies describe the kiosks as a payment rail for scams, and a growing list of states caps what they can charge and how much a customer can put in per day. Every figure below was read on 14 October 2026. Nothing here is financial advice.
How do bitcoin ATMs work?
Four steps at a buy-only machine. The customer verifies a phone number or ID, scans the QR code of a wallet address, inserts cash, and confirms the quoted rate. The operator then sends bitcoin on-chain to that address. Some machines also buy bitcoin back and dispense cash.
The rate on screen is not the market rate. CoinFlip's terms describe it plainly:
The exchange rate displayed on the screen is the Market Price plus the Transaction Fee, excluding the Network Fee.
The bitcoin then moves on the public blockchain. bitcoin.org states: "A Bitcoin transaction cannot be reversed, it can only be refunded by the person receiving the funds." Whoever controls the address on the QR code controls the money once it is sent.
What are bitcoin ATM fees?
Several times an exchange's, and they are charged as a markup rather than a line item. CoinFlip's terms say "The Transaction Fee typically ranges from 4.99% to 21.90% of the total transaction amount" and "The Company may charge a minimum $2.49 Network Fee."
Bitcoin Depot, which reports approximately 9,700 kiosks across 48 US states, 10 Canadian provinces, six Australian states and Hong Kong at 31 December 2025, does not publish a fee percentage in its annual report. The 10-K says "We generate substantially all of our revenue from the cash paid by customers to purchase Bitcoin from our kiosks" and reports a 17.2% gross profit margin for 2025. Its own terms page refused automated access under robots.txt and was not read: not verified.
State law now sets ceilings in some places. California's Department of Financial Protection and Innovation says that since 1 January 2025 operators may not collect charges above the greater of $5 or 15% of the transaction, and since 1 January 2024 may not accept or dispense "more than $1,000 in a day from or to a customer via a kiosk."
Which states cap bitcoin ATM fees and limits?
California's rules were read on the regulator's own page. For other states, the list below is how Bitcoin Depot summarises the laws it operates under in its 10-K. The state statutes themselves were not read for this piece.
| State | Fee cap | Limit (daily unless noted) | Source read |
|---|---|---|---|
| California | Greater of $5 or 15% | $1,000 per customer | DFPI page |
| Arkansas | Greater of $5 or 18% | $2,000 new, $7,500 existing | Bitcoin Depot 10-K |
| Connecticut | 15% | $2,000 new, $5,000 existing (described as transaction limits) | Bitcoin Depot 10-K |
| Illinois | 18% | $2,500 new, $10,500 existing | Bitcoin Depot 10-K |
| Iowa | Greater of $5 or 15% | $1,000 all customers | Bitcoin Depot 10-K |
| Maine | Greater of $5 or 3% | $1,000 all customers | Bitcoin Depot 10-K |
| Arizona | None listed | $2,000 new, $10,500 existing | Bitcoin Depot 10-K |
California's page adds disclosure duties: a written notice before each transaction, receipts listing the fees collected and any spread against a licensed exchange's price, and, where a transaction cannot be reversed, "a warning that all transactions are final and cannot be undone." Licensing under the state's Digital Financial Assets Law applies from 1 July 2026.
How big is the bitcoin ATM scam problem?
Growing, by both federal counts.
| Year | Crypto ATM complaints to IC3 | Losses | Change in losses |
|---|---|---|---|
| 2024 | 10,956 | $246.7 million | 31% up on 2023 |
| 2025 | 13,460 | $389 million | 58% up on 2024 |
Older victims carry most of it. The 2025 IC3 report's crypto ATM age table (page 54) puts 6,188 of the 2025 complaints, and $257,466,130 of the losses, in the 60-and-over group. The FTC's September 2024 spotlight found the same pattern in its own data: people 60 and over reported losing "$46 million using BTMs, or about 71% of the reported losses" in the first half of 2024, and the median loss across all reports in that period was $10,000. The FTC press release says that since 2020 reported losses have "increased nearly tenfold to over $110 million in 2023".
The scripts repeat. The FTC says the losses are "overwhelmingly about government impersonation, business impersonation, and tech support scams." FinCEN's notice FIN-2025-NTC1, dated 4 August 2025, names tech and customer support scams and bank imposter scams, and says "Some of these scams disproportionately impact older adults."
How does a bitcoin ATM scam work?
A caller claims to be a bank, a government agency or tech support. The victim's account is "compromised". The fix is to withdraw cash and feed it into a kiosk, scanning a QR code the caller sends. The address belongs to the caller. The FTC's consumer alert is blunt:
Once you deposit the cash, it goes straight into the scammer's wallet.
Its rule of thumb: "Don't believe anyone who says you need to use a Bitcoin ATM to protect your money or fix a problem." Operators print the same warning. CoinFlip's terms carry the line "STOP! You are being scammed, hang up and call us at 877-757-2646."
Can you get money back from a bitcoin ATM scam?
Rarely, and usually only the fee. CoinFlip's terms state "ALL TRANSACTIONS ARE IRREVERSIBLE AND NON-REFUNDABLE unless required by State law." Its refund section covers reported and verified fraud, and says refunds "will be equal to the amount of transaction fees collected by CoinFlip during the transaction", with claims due "within 90 calendar days of the transaction date". The bitcoin itself has already left.
Report to IC3 and the FTC, then expect a second wave of fake recovery firms. The legitimate routes and the agencies' warnings about paid recovery are on the crypto scam recovery page. Whether a card or bank payment can be clawed back instead is in can you chargeback a crypto purchase.
What this does not show
Bitcoin Depot's consumer fee schedule and terms: not verified, blocked to automated fetch. The statutes of states other than California: the table reports the operator's summary. FTC kiosk loss totals for 2024 and 2025: the FTC figures quoted stop at mid-2024.
Quick answers
How do bitcoin ATMs work?
Cash goes in, the operator sells bitcoin at its own rate and sends it to the wallet address scanned. The send cannot be reversed. Other ways to buy and sell are in how to sell bitcoin.
How much are bitcoin ATM fees?
CoinFlip's terms set 21.90% to buy and 4.99% to sell, plus a network fee from $2.49. California caps fees at the greater of $5 or 15%.
Is a bitcoin ATM a scam?
The machine is a payment rail. IC3 logged 13,460 crypto ATM complaints and $389 million in losses in 2025. The FTC says no real business or agency asks for payment through one. See scam recovery.
Is there a daily limit at bitcoin ATMs?
In California, $1,000 per customer per day under DFPI rules. Bitcoin Depot's 10-K lists limits from $1,000 to $10,500 in other states.
Sources
- CoinFlip Bitcoin ATM and Website Terms of Service, effective 30 September 2026, retrieved 14 October 2026
- FBI IC3 2025 Internet Crime Report, retrieved 14 October 2026
- FBI IC3 2024 Internet Crime Report, retrieved 14 October 2026
- FTC Data Spotlight, Bitcoin ATMs, a payment portal for scammers, 3 September 2024, retrieved 14 October 2026
- FTC press release, New FTC Data Shows Massive Increase in Losses to Bitcoin ATM Scams, retrieved 14 October 2026
- FTC consumer alert, Scammers use Bitcoin ATMs to steal your money, retrieved 14 October 2026
- FinCEN Notice FIN-2025-NTC1 on convertible virtual currency kiosks, 4 August 2025, retrieved 14 October 2026
- California DFPI, Digital Financial Assets Law, information for kiosk operators, retrieved 14 October 2026
- Bitcoin Depot Inc., Form 10-K for the year ended 31 December 2025, SEC EDGAR, retrieved 14 October 2026
- bitcoin.org, some things you need to know, retrieved 14 October 2026
- CryptoGuardz crypto scam recovery page
About this piece
Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.