More, Higher Fees Charged at ATMs, Study Finds
When Californians dart to the nearest automated teller machine for some quick cash, they’re more likely than ever to pay a hefty fee, a nonprofit consumer group said Thursday.
Banks that own 99% of the ATMs throughout the state now impose surcharges for users who do not have an account with them, up substantially from a year ago, the California Public Interest Research Group reported in its annual survey.
The banks also are charging more for each transaction, the group said.
Indeed, banks throughout the nation will haul in $2.1 billion in revenue from surcharges this year, the group estimated.
“We agree people should pay for convenience--but not that much,” said Jon Golinger, the California group’s consumer program director. “Most of these transactions cost the banks involved about 70 cents. The rest is gravy.”
In California, more than 85% of the 30 banks surveyed impose surcharges when non-account holders use their ATMs, up from 54% a year ago, CalPIRG found. Those banks operate 99% of the state’s ATMs.
Banks also are charging 6 cents more, on average, than they did in 1998, boosting the fees at some ATMs to as much as $3.50 per transaction, the study showed. Californians also pay about 10 cents more per use than the national average, based on surveys of 336 banks in 23 states by the California group’s national affiliate.
Consumers face a financial form of double jeopardy when they use ATMs owned by banks where they do not hold accounts. Their banks charge them a penalty--typically about $1.40--and then the bank that owns the ATM tacks on an average of $1.47, the study found.
Bank officials say the fees offset the expense of enlarging ATM networks, paying to place the cash-spewing gadgets in theaters, hospitals, sports arenas and other lower-volume locations.
Though automation has allowed banks to employ 10% fewer tellers than they did 10 years ago, ATMs cost $20,000 to $40,000 apiece to purchase and about $20,000 a year to maintain, said John Hall, spokesman for the American Bankers Assn.
Bankers also say consumers have multiple options for avoiding the fees, from using their own banks’ ATMs to cashing checks at grocery stores.
