ATMs are a fixture in American life–there are about 200,000 of them across the country. It typically costs $1 to $2 to use an ATM operated by a bank other than your own. However unpopular they are, the fees could keep rising, according to some industry experts, as banks continue to make ATMs more of a profit center.
Bankers defend the fees. They’re a “convenience charge,” akin to paying more for popcorn at movie theaters, said Janet Eissenstat, spokesperson for the American Bankers Association. The actual cost to the banks for handling an ATM transaction is about 27 cents. Besides the ATM fees that banks charge consumers, the banks also receive 25 to 50 cents from a fee-sharing arrangement among banks that share the same network. The Pentagon is concerned because its soldiers and sailors move around so much, often far from their own banks, leaving them no choice but to pay ATM fees. “We don’t want to charge our people to get their salaries,” Under Secretary of Defense William Lynn said. Cutting the fees would be good news to Marine Sgt. Michael Dalton, who was standing in line on a recent afternoon at the Marine Federal Credit Union at Camp Lejeune, N.C. He just paid $1.50 to use the ATM because his bank isn’t on base. “I’ve already used it twice today,” he complains. “Where are all the dollars going?”
Certainly a lot of dollars will be invested in fighting over this issue. Bankers believe cities have no right to dictate ATM policies for national banks, and will seek to overturn the laws when they go into effect. For updates on whether fees will head up or down, stay tuned to an ATM screen near you.
