ATM fees seem to be on the rise at some major US banks, thus, consumers should be ready to face a fee up to $5 withdrawing cash from the ATM of another bank. In fact, the occurence of these fees is caused by the new federal regulations on debit cards and overdraft changes as banks try to replace billions of dollars in revenue this way which are expected to be lost due to the new measures and rules.
Chase, for instance, is currently testing out $5 fees for non-consumers using its ATM in Illinois and $4 fee for the Texas consumers. Besides, this fee goes in addition to any other fees charged by the customer’s bank. Actually the bank’s network comprises 16,000 ATMs with over 20% located in both states. According to the latest research, Chase has spent more than $400 million for building this network and now the bank pays $200 million per year to run it. This fact can be actually considered as the main reason of the ATM fee provision for non-consumers using this large network.
Another major US bank, HSBC, have also started to charge all the non-consumers a fee of $3 for using its ATMs. However, prior to this change, 60% of the ATMs belonging to the bank charged $3 fee for non-consumers, though, the rest 40% charged from $1.75 to $2.50.
As for the other megabanks, including Bank of America, City and Wells Fargo, they haven’t made such changes yet, however, they seem to be not so far.
Even some smaller banks which had zero ATM and free checking fees for consumers need to be reconsidered. Otherwise, such extra charges may increase the consumer demand for payday loan products. PNC Bank, for instance, is still keeping free checking account, though, it is going to stop reimbursing ATM fees for free-checking consumers who use ATMs out of the bank’s network starting in September and will charge them $2 a pop. The PNC spokesman stated that the only way to avoid these ATM fees is to open a Performance Checking account and pay a monthly fee of $10 or carry a balance of $1,500.
Changes made by TD Bank are almost the same. Now the bank is charging consumers a $2 fee if they use ATMs out of network. However, consumers who carry a high minimum balance and pay a monthly fee of $25 can avoid newly provided ATM fees.
Well, financial experts say that the charges in ATM fees come as an effect of a proposed rule that is aimed to cap the fees charged by banks for retails every time consumers swipe their debit cards for making purchases.