ATM and Bank Fees On The Rise

[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/p...and-overdraft-fees-are-on-the-rise/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?!?!

 

[gwraigty]

You can avoid ATM fees by banking with a firm that reimburses you those fees and/or going as cashless as possible.

 

[COcheesehead]

You are confusing cost plus based pricing and market based pricing.

 

[ExFlyBoy5]

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.

 

[RobbieB]

Another reason I'm with BofA, lots of machines, lots of branches.

 

[Jerry1]

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.

 

[Just_Steve]

Probably 5 years since I have used an ATM so don't really care what the fees are.

 

[COcheesehead]

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

 

[Dtail]

Another reason I'm with BofA, lots of machines, lots of branches.

+1 plus they reimburse ATM fees for Platinum customers.

 

[Midpack]

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...

 

[CardsFan]

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.

 

[Car-Guy]

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?

 

[ExFlyBoy5]

+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.

 

[Jeffman52]

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.

 

[rk911]

our bank refunds ALL atm fees but we rarely use a "foreign" atm. when traveling we usually get cash back when making a purchase.

 

[jazz4cash]

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.

 

[audreyh1]

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.

 

[UnrealizedPotential]

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?

 

[Chuckanut]

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/p...and-overdraft-fees-are-on-the-rise/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!

 

[Free To Canoe]

Their costs are mostly fixed. Only the income is variable.

 

[scrabbler1]

I am a BofA customer and they have lots of branches, too. This includes near my old office in lower Manhattan (pretty easy to have a branch of any bank there!) and after my company relocated to Jersey City, New Jersey. Penn Station has ATMs if I need to get some quick cash.


BofA used to be Fleet Bank which used to be Nat West until the mid-1990s. Back in the early 1990s, Nat West didn't charge you if you used another bank's ATM. Nor did other banks charge you if you weren't their customer. When Fleet took over, that was the end of using another bank's ATMs. Fleet also had tougher minimum balance rules so I could no longer get any interest on the money I was using to avoid monthly fees, an indirect fee itself. Or I'd have to leave more money with them than before, money coming from a bond fund which was earning much more, another indirect fee.


I recall one morning in the late 1990s when I got off my train at Penn Station and ran to the Fleet ATMs to get some cash. But by mistake I inserted my (non-Fleet) credit card instead of my ATM card. They were the same color. But thankfully, New York State had recently passed a law requiring ATMs to post a warning that you would be charged a fee before the transaction was completed and give you the chance to cancel the transaction. When I saw this unfamiliar screen, I was puzzled but then realized I had put the wrong card into the ATM. I canceled the transaction, switched to the proper card, and got my cash without any fee.


That's the closest I ever came to paying an ATM fee.

 

[Spock]

Its in-network vs. out-of-network transaction costs more so than "wear and tear" on the machines.
The corner convenience store isn't hosting that ATM for free.
The armored truck company isn't restocking the convenience store ATM for free.
The telecom isn't connecting the convenience store ATM to the network for free.

 

[Jerry1]

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.

As long as it was clear up front that they are doing this, that would not bother me. I wouldn’t get the cash back there, but as long as I was informed, I’d be okay with still shopping there.

I went to my local hardware store and the dinged me for using a credit card. No notice anywhere. I hope they’re happy losing a good customer for $2. I’ve never been back.

 

[Senator]

Who uses cash anymore?
I have not withdrawn cash from an ATM more than about twice in the last 30 years.

 

[kcowan]

Since the CC companies have adopted tap-and-go payments, we almost never use ATMs anymore. Cash on a points card for $5 is faster than digging out the wallet and waiting for change! Even parking meters are by phone now.