CONSUMER WATCH : Bank Holdup?

For several years now the banking industry has been introducing automated teller machines nationwide in an effort to cut the cost of providing human tellers for customers.

The ATMs do indeed lower banks’ costs, plus they provide a convenience to customers needing quick cash. However, shortsighted banks are threatening to spoil a good thing.

Many are planning to impose substantial fees for each use of ATMs, mainly machines owned by banks other than the one that holds the customer’s account.

As more and more customers use the ATM machines that are appearing in supermarkets, shopping malls and even gambling casinos, bank and credit card issuers may think that consumers are happily accepting the new surcharges as the price of convenience. That may not be the case.

Consumers could vote with their feet by refusing to use machines that charge high fees. But that won’t happen until banks are made to disclose the costs involved.

Often the customer has no idea there is a surcharge, which can run as high as $3 per transaction, until his or her bank statement arrives in the mail. It is essential that banks tell customers on the ATM screen, before the transaction, that there is a fee and how much it is.

That way, the ATM customer can decide whether the service is worth it. Many might choose instead to wait in line for a teller. But there’s a problem with that too: On some accounts, some banks have begun to charge for using tellers.