Last spring’s initiative to cap ATM fees at 50¢ per transaction went nowhere. In fact, ATM fees are heading in the opposite direction: Chase machines are now testing out fees of $4 and $5 a pop, and the fees are expected to increase and spread.
The WSJ reports that Chase, which generally charges $3 when its ATMs are used by non-customers, is initially testing higher fees in Texas ($4) and Illinois ($5). The new fees are part of the broader efforts by banks to make up revenues supposedly lost by recent regulatory reforms. The widespread rise of checking account fees are part of this same strategy.
ATMS in the U.S. reportedly generated $7.1 billion in fees last year. On the one hand, this sounds outrageous. On the other, we’re pretty much talking about entirely avoidable fees. It’s easy to understand why the banks charge ATM fees, and why they keep jacking them up: Because people keep paying them. What’s harder to understand is why, exactly, people keep paying them.
Will consumers finally get serious about avoiding ATM fees when $5 is the standard? How about $7.50? Or $10? Something tells me we’ll find out in the near future.
