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ATM and Bank Fees On The Rise
Old 10-03-2019, 12:03 PM   #1
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ATM and Bank Fees On The Rise

I heard this story on my local news today, and found an article about it. The quote from the article which kinda baffled me was this one (emphasis mine):

https://www.msn.com/en-us/finance/pe...ise/ar-AAI9qL1

“I think what may be happening is that the owners and operators of the ATMs who are relying on the surcharge income to operate those ATMs may be seeing fewer customers,” says Sarah Grotta, director of debit and alternative products of advisory service at the Mercator Advisory Group. “And so on a per-transaction basis, they may be raising the fees to make up for the fact that fewer consumers are actually paying a surcharge.

I always thought the ATM charges levied on non-bank customers was because they were causing added wear and tear and other costs of maintaining their own ATMs. So, if fewer people are using other bank's ATMs, wouldn't that cause a proportional reduction in those costs?

It's like when the electric company raises rates because people are conserving energy and using less electricity to try to cut their electric bills?!?!
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Old 10-03-2019, 12:21 PM   #2
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You can avoid ATM fees by banking with a firm that reimburses you those fees and/or going as cashless as possible.
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Old 10-03-2019, 12:21 PM   #3
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You are confusing cost plus based pricing and market based pricing.
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Old 10-03-2019, 12:46 PM   #4
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Originally Posted by scrabbler1 View Post

I always thought the ATM charges levied on non-bank customers was because they were causing added wear and tear and other costs of maintaining their own ATMs. So, if fewer people are using other bank's ATMs, wouldn't that cause a proportional reduction in those costs?
Well, many of these ATMs aren't at a banking location, so there are lease agreements, insurance, maintenance among other fixed costs I'm sure.
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Old 10-03-2019, 01:15 PM   #5
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Another reason I'm with BofA, lots of machines, lots of branches.
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Old 10-03-2019, 01:26 PM   #6
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ATM fees are just one of those costs I could never tolerate. It’s just “the man” picking your pocket and I won’t pay it, no matter how small it is. If my bank charged it, I’d go to a teller. I certainly hope the day never comes where there’s a universal charge to get your hands on your own cash.
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Old 10-03-2019, 01:28 PM   #7
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Probably 5 years since I have used an ATM so don't really care what the fees are.
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Old 10-03-2019, 01:29 PM   #8
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Fidelity reimburses my ATM usage fees. So I can use any machine and it costs me nothing.

I also use an ATM maybe 2-3 times a year.

#cashlesssociety
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Old 10-03-2019, 01:32 PM   #9
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Another reason I'm with BofA, lots of machines, lots of branches.
+1 plus they reimburse ATM fees for Platinum customers.
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Old 10-03-2019, 01:35 PM   #10
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I’ve never used an ATM that wasn’t an extension of my bank, and therefore free, yet. Where we live now our bank has over 30 ATMs in the metro area, so we can always find one. I guess we’ll all be cashless eventually anyway, and banks will push us away from ATMs in time. Life goes on...
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Old 10-03-2019, 01:46 PM   #11
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My local bank reimburses ATM fees, up to $10/month, if you carry a minimum deposit ($5,000 in checking or $15,000 total for all accounts). No charge for the bank ATM's, and I will often stop there, as they have two locations in areas that I frequently pass.

BUT, on a related note, they used to provide free safe deposit boxes (for the same minimum). Just got a letter yesterday saying they are raising the safe deposit fee from $25 to $75/year. But they are going be nice guys and give me the same $25 credit, so I only have to pay $50/year

On the one hand we are re-thinking the need for the box, and on the other hand, we think nothing of dropping $50 going out with friends for drinks and a bite to eat several times per month.
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Old 10-03-2019, 02:07 PM   #12
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I keep a checking account with Schawb (not my primary) since that way I can use any ATM, anywhere, and get all fees reimbursed.


Schwab has problems (another story) but wow, no ATM fees anywhere, now no charge for stock trades. What's going to be free next?
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Old 10-03-2019, 02:53 PM   #13
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+1 on the fee reimbursement. I have not been happy with some of the recent developments with USAA, but the banking side of business has been flawless and they have been refunding these fees for years.
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Old 10-03-2019, 02:58 PM   #14
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I also read that Kroger now charges a "cash back" fee. Not that I do that very often but just because that's a 'rip' I decided to take my business to the Meijer that is less than a mile from the Kroger.
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Old 10-03-2019, 10:51 PM   #15
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our bank refunds ALL atm fees but we rarely use a "foreign" atm. when traveling we usually get cash back when making a purchase.
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Old 10-03-2019, 11:12 PM   #16
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Another reason I'm with BofA, lots of machines, lots of branches.


Yeah me too but I was shocked when I travelled to Indy last year and used the Atm locator. It said the nearest machine was in Cincinnati. When I travelled back there this year they now have an ATM downtown.
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Old 10-04-2019, 04:17 AM   #17
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Another reason I'm with BofA, lots of machines, lots of branches.
Not so good for me. Their overseas fees are outrageous and some areas we visit in the US it’s quite a distance to their branch. I use Schwab or Fidelity- don’t have to worry about fees at any ATM US or overseas (no foreign transaction fees, all ATM fees reimbursed).

We rarely use ATMs in the US. Use them quite a bit overseas.
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Old 10-04-2019, 04:25 AM   #18
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When I use my Schwab ATM card, Wells Fargo charges $3 each transaction. Schwab refunded the WF fee at the end of the month. Then I recently discovered I could go down the street at another bank who doesn't charge any ATM fees. It's a state bank. So I go there. Why should I give money to Wells Fargo if I don't have to?
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Old 10-04-2019, 05:30 AM   #19
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Quote:
Originally Posted by scrabbler1
I heard this story on my local news today, and found an article about it. The quote from the article which kinda baffled me was this one (emphasis mine):

https://www.msn.com/en-us/finance/pe...ise/ar-AAI9qL1

“I think what may be happening is that the owners and operators of the ATMs who are relying on the surcharge income to operate those ATMs may be seeing fewer customers,” says Sarah Grotta, director of debit and alternative products of advisory service at the Mercator Advisory Group. “And so on a per-transaction basis, they may be raising the fees to make up for the fact that fewer consumers are actually paying a surcharge.


Got it! Less business so they need to raise prices. And here I thought price was a function of supply and demand with less demand meaning lower prices. Foolish me!
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Old 10-04-2019, 05:41 AM   #20
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Their costs are mostly fixed. Only the income is variable.
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