ATM fees are on the rise at some of the country’s biggest banks.
Chase, for example, is testing out $5 fees for non-customers. That means if you stumble upon a Chase on your way to dinner and decide to take out 20 bucks, you’ll pay a 25% fee. And that doesn’t even include what your own bank charges you for going out of network, which is typically around $3.
JP Morgan Chase is currently testing the $5 ATM fee in Illinois and a $4 ATM fee in Texas — both for non-customers who use its ATMs — to see if they bring in enough revenue to introduce nationwide, according to sources familiar with the tests. A Chase spokesman declined to comment.
Out of the bank’s network of 16,000 ATMs, more than 20% — or about 3,600 — are located in these two states. Chase spent an estimated $400 million to build the entire network and pays $200 million a year to run it. So the bank is making non-customers pay a significant amount for the convenience of using this large network.
Meanwhile, HSBC Bank USA this month started charging all non-customers a $3 fee for using its ATMs, saying that this pricing is more competitive. Previously, about 60% of its ATMs charged a $3 fee for non-customers, while the remaining 40% charged either $1.75 or $2.50.
While other megabanks like Wells Fargo, Bank of America and Citi haven’t made similar changes yet, CardHub.com CEO Odysseas Papadimitriou says they’re not far away.
Join the official YWN WhatsApp status
6 Responses
Yet one more reason to not go anywhere near these banks. Find a small community bank that actually values its customers and treats you well.
There is virtually NO reason for this as it is all computerized.
Sure there is, they can make a lot of money at the expense of their customers.
There is virtually NO reason for this as it is all computerized.
Sure there is. The bank is voluntarily providing you with a service. Why shouldn’t they get paid for it?
The Wolf
they can make a lot of money at the expense of their customers.
Actually, they’re making it at the expense of other banks’ customers. There are very few banks in the US (if any) that charge their own account holders for the use of their ATMs.
The Wolf
So use your own bank’s ATMs. Big deal. In the “old days” you could only cash a check at your own bank (or sometimes by a merchant who knew you).