$5 ATM fees may be coming
Some of the nation’s biggest banks are imposing a variety of new fees on people who withdraw money from automated-teller machines.
The move is the latest example of the burgeoning new fees that banks are imposing on customers accustomed to years of free services. Banks are scrambling to replace billions of dollars in revenue expected to be lost from new federal regulations on overdraft charges and debit cards.
J.P. Morgan Chase & Co., TD Bank Financial Group, and PNC Financial Services Group already are changing their ATM policies to collect more fees.
“The reality is that bank revenue is being squeezed by regulatory changes and the banks are going to be accounting for that in other areas,” said Greg McBride, senior financial analyst at Bankrate.com.
Banks usually don’t charge customers who take money out of their own ATMs. That isn’t the case when people go outside the network operated by their own bank to get cash.
As a result, a fee on a single ATM transaction can reach the double digits, said Mike Moebs of Moebs $ervices Inc., a Lake Bluff., Ill.-based company that tracks such data. Mr. Moebs himself said he has been hit with fees as high as $20 for using an ATM that wasn’t affiliated with his bank.
Rising ATM fees have long been a source of contention between the banking industry and consumer advocates. ATMs generated $7.1 billion in fees last year, according to consulting firm Oliver Wyman. Of that, banks collected roughly $3 billion from charging their customers for using another institution’s ATM. The operator of that ATM often levies another fee on the same customer, called a surcharge. Those surcharges averaged $2.33 in 2010, up from 89 cents in 1998, according to Bankrate.com.
Last year, federal lawmakers proposed capping ATM fees at 50 cents. The proposal never came up for a vote.
So How Do You Feel About Getting Charged 5 Buck Each Time For Access To Your Own Money??http://chicagobreakingbusiness.com/2011/…
Categorized | Featured Articles
How Do You Feel About 5 Dollar Atm Fees?
Posted on March 18, 2011.
Not too much. What they charge now is too high. Yet another tax levied onto the working class by our beloved government.
should be outlawed
They are a symbol of an out of control banking industry.
It is the price you pay for it.
DTG
I like to piss them off and withdraw money from the teller inside at the counter. Saves me money.
The banks are forced to get money where they can. Just don’t use the machines.
I don’t mind them if they are not at my own bank’s tellers. I don’t use ATM’s anyway. I think a couple free ones per month would be nice.
Why do people need ATMs? I have never owned an ATM card and I get by fine. I can use my credit card just about anywhere and they pay me to use it since I pay it off at the end of every month.
don’t use atm’s
All the more reason to join a credit union.
Walked away from banks over 20 years ago and have never regretted it.
This is a “Thank you very much” from the very banks that took billions of our tax dollars to bail them out of non-existence.
What else is new?
That is not legal in the UK, unless the ATM’s are inside commercial buildings, should do the same thing
you only need to post a paragraph if you post a link,otherwise we read the same thing twice
the odd thing about that they didnt tell anyone about it
Ahh yes, Dodd Frank, more “compassionate” government legislation that will lead to higher costs/lower living standards for Americans and (here’s the best part) less credit for the “disenfranchised”. That’s what happens when lenders can’t appropriately price their risk, but the left will whip out the tired old “greed” rhetoric. Like people are going to lend to deadbeats like they’re a good credit risk.
I am up to facebook movement to pull money out of ATMs on the same day. Pull the money out and sit on it.
Got a notice that my bank is going to start to charge $2.50 every time I use any other banks ATM, on top of whatever that bank charges.
I noticed the bank that I am changing banks. The small one down the street will REIMBURSE me for fees that other bank ATM’s charge. They just earned my business
Nothing, ain’t got no money to take out of an ATM anyway
If your bank is charging you $5 to take out your own money, maybe it’s time to put your money into a credit union or use a live teller.
You don’t have to use an ATM, I don’t. I told my bank when I started the account not to even send me one.
Not a fan. If they do that, and impose a cap on debit card spending, the big banks will lose so many customers (they’ll lose this customer) that they can’t possibly continue operating.
Thanks to Democrats and their Wall St. and banking bill! Once again your policies cost the middle class!
Free checking is also a thing of the past! Thanks once again Democrats!http://finance.yahoo.com/news/Say-goodby…
The class war is well underway. The rich are winning in every theater of operations.
I don’t use ATM’s. If you use smaller banks you will get better service. All the big banks have people that just set around and dream up ways they can short circuit the system and charge for things they should be doing for free. They are “too big” to go under? Not in my estimation. I think the whole country would have been better off if they had. I am all for regulation when it comes to something that affects everyone and everything in the country.
I’m furious about this, but not surprised.
I’m a Marxist, and I usually think of capitalist enterprises like banks in terms of “Marxist” categories. But I also studied biology in college, and I think some capitalist industries are best understood in biological terms, the way the average zoologist understands predators.
A wildlife biologist won’t “blame” — say, predators such wolves because the wolves eat rabbits, kill sheep & livestock where available, and form in packs to chase down deer. The fact is, the wolf just can’t generate its own food, the way a green plant can. It needs to kill & eat something else to survive, and the wildlife biologists accepts this.
Big banks are rather similar to wolves, I think. At their best, they do provide important services for our economy, but to survive, they have to squeeze profits out of somewhere.
If they can’t squeeze it out of consumers by charging us high interests rates on credit cards, or by selling us subprime mortgages and charging us high fees, they will try to squeeze the money out of us another way — for instance, through ATM fees.
So long as the banks are profit-making enterprises, of course, they actually have to do more than squeeze enough money to survive. They also need to extract enough “surplus value” from their customers and/or clients to pay big dividends to their stockholders.
Otherwise the stockholders will desert them, Moody’s Investment Services will downgrade the bank’s securities, and the whole banking firm may fail financially & disappear.
So while I hate the idea of my bank robbing me each time I use an ATM card that they’ve encouraged me to own, I can’t really blame them for doing what comes naturally. In essence, they’re predatory institutions. If you think about them from the wolf’s perpective, not the sheep’s, it’s not surprising or shocking that they’re trying to squeeze money out of us with no justification. If we don’t like this, we need to change the nature of the banking business, not just cast blame.
Just another unpleasant side effect of the Government meddling in the market.