Consumers Show More Resistance to ATM Fees

Consumers are finally rejecting the idea that they should pay for access to their own money, turning away from ATMs and the fees they charge, according to a new survey.

More often, when they need cash, consumers use their debit cards to make purchases, then get cash back. When they do use an automated teller machine, they’re making sure it’s at a branch of their own bank.

“Cash station surcharges have become a double-edged sword for ATM networks,” said David Gosnell, senior editor for trade publication Bank Network News of Chicago, which conducted the survey.

“There’s a general consensus that surcharges have dampened ATM use and shifted consumer thinking toward using debit cards, but the industry has been slow to respond because of the profits attained from them,” Gosnell said Tuesday.

According to the survey of the 10 leading ATM networks--including Cash Station, Star and Interlink--monthly ATM transactions fell to 907.4 million in March 1999, down 2.4% from the 930 million transactions recorded in June 1998. At the same time, debit card point-of-sale transactions jumped 35%.

Debit cards, which make automatic deductions from the customer’s bank account, have become more popular as greater numbers of retailers have begun offering the opportunity for customers to use them not only to make purchases but also to get cash back, according to Speer & Associates, an Atlanta consulting firm to the banking industry.

Overall, roughly 66% of the nation’s 227,000 ATMs in 1998 levied nonmember surcharges averaging $1.22 each time such a customer used them, up from 56% a year earlier, according to Speer & Associates, an Atlanta consulting firm to the banking industry.