Another front on the war on cash: rising ATM fees

[Anti Federalist]

ATM Fees Are Out of Control

https://www.bloomberg.com/news/artic...out-of-control

Customers are using machines outside their bank network less often—but paying exorbitant fees when they do.

By Suzanne Woolley

October 3, 2017, 12:01 AM EDT

Drawing cash from an ATM is beginning to feel like a ritual from a bygone era. Like buying a record on vinyl, it’s a once-universal experience for which dedicated fans are now paying a premium.

This year marks the 11th consecutive annual increase in bank ATM fees for customers using out-of-network machines, according to a new Bankrate.com report. Over the past decade, such fees have risen 55 percent. The average cost of such a transaction is now over $4.50.

ATM fees aren’t rising due to overwhelming demand. In fact, it’s the opposite. “It keeps getting easier to avoid the fees, and people are transitioning away from cash,” said Greg McBride, Bankrate.com’s chief financial analyst. “With fewer people making out-of-network ATM withdrawals, the cost of maintaining that network is being spread over fewer transactions.”

The report looked at the 10 biggest banks in the top 25 major metro areas to find out where average ATM fee surcharges are the steepest and where they are … slightly less steep. Pittsburgh experienced the highest average fees, with customers paying $5.19 when Bankrate.com combined the fees charged by the ATM operator with fees from the consumer’s own financial institution. The lowest average fees were found in Dallas, at $4.07.

Customers with higher account balances or multiple relationships with their bank—as in a checking account, a mortgage and a personal loan, for example—may avoid out-of-network ATM charges from their bank or be reimbursed for some of them.

The average overdraft fee reached a new high of $33.38, up from $33.04 in 2016. Philadelphia consumers pay the highest average overdraft fee, at $35.30. In San Francisco, average overdraft fees are the lowest of the top 25 metro areas, at $31.44. Banks hiking that fee last year outnumbered those trimming it, by seven to one.

The Consumer Financial Protection Bureau zeroed in on overdraft fees in a recent report (PDF). Consumers who pay a lot in overdraft fees “tend to be more credit-constrained,” to have lower credit scores and be less likely to have a general purpose credit card, it found. That means overdraft fees can weigh heavily on already fragile finances.

In the wake of the CFPB report, “we are seeing a little more latitude given to consumers by their banks,” said McBride. If someone overdraws by only a few dollars, the bank may charge a smaller fee or completely forgive the infraction, he said. It’s a small mercy in a land of big fees.

[DamianTV]

The war on cash is the war on unmonitored transactions.

In the end, your kids will have to pay taxes on their allowances they get at 5 years old.

[luctor-et-emergo]

Damn.. Even though everything is moving towards electronic payments here.. I pay no fees to take money from an ATM and I can take as much as I want...

[oyarde]

Damn.. Even though everything is moving towards electronic payments here.. I pay no fees to take money from an ATM and I can take as much as I want...

I pay no fee if I use my bank . I only use it if the bank is closed . But on a Sat afternoon , I will stop & get 40 for gas or the butcher shop or whatever before I use my credit card . Once the economic collapse comes and Danke moves in I will make him run my errands .

[oyarde]

Now , say I drive two states South to visit some Grandkids , I use the local backwater bank there to get a 20 . Fee could be 20 percent , probably more than 10 percent . I never do that . Just money I will keep and not put into the local economy .

[juleswin]

In my grocery story u can withdraw up to $100 from the register if you buy anything. The last time I paid for ATM fees was the last time I went to the strip club and that was years ago. Haven't paid ATM fees since then.

Maybe we need Sen. Harkin's amendment on ATM fees.

Protecting Consumers From Unfair ATM Fees

This is unfair and it is a policy we must address head on.

The Senate has an opportunity to do so in the financial reform package now moving through Congress, The Restoring American Financial Stability Act of 2010. An amendment that I have proposed for inclusion in the pending Wall Street reform bill protects consumers.

My amendment requires the new Consumer Financial Protection Bureau to ensure that fees charged to consumers at ATMs bear a reasonable relation to the cost of processing the transaction. Essentially, it says that the big banks can set up a reasonable charge based upon what the costs are, but no more than 50 cents per transaction. Think about that: anytime you go to your ATM machine, no matter how much money you withdraw, the machine can only charge you a reasonable fee for the convenience, but in no case more than 50 cents.

Some people may think that $2.00 is not much, but here is the other unfair thing about it. The average person going to an ATM machine takes out on average $20.00 or $50.00 to get them through a day or two, and they are charged $2.50 for accessing that money. Yet someone else may withdraw $500.00, and they pay the same $2.50. The burden falls more heavily on low-income and moderate-income people. That is grossly unfair. And that is why groups like the U.S. Public Interest Research Group, the Consumer Federation of America, Consumer Action, Consumers Union and the National Consumer Law Center support my amendment on behalf of their low-income clients.

http://www.huffingtonpost.com/sen-to..._b_572353.html

[angelatc]

Are we calling for regulation?

The Consumer Financial Protection Bureau .... aka the government's shakedown unit.

[euphemia]

Now , say I drive two states South to visit some Grandkids , I use the local backwater bank there to get a 20 . Fee could be 20 percent , probably more than 10 percent . I never do that . Just money I will keep and not put into the local economy .

I recently drove through four states to visit grandkids. Did not use an ATM and paid cash for everything. I am big on paying cash. For one thing, I have a hobby to feed. For another, point of sale electronic payments are very vulnerable to identity theft. I'd rather walk inside the store and pay.

[oyarde]

I recently drove through four states to visit grandkids. Did not use an ATM and paid cash for everything. I am big on paying cash. For one thing, I have a hobby to feed. For another, point of sale electronic payments are very vulnerable to identity theft. I'd rather walk inside the store and pay.

Yes , I never use an ATM once I leave town.

[oyarde]

Are we calling for regulation?

The Consumer Financial Protection Bureau .... aka the government's shakedown unit.

Not me , people charge fees for lots of things I am not going to use . Does not bother me .

[oyarde]

Banks do what they can get by with . If you live in Dallas and they charge you 4 FRN's to use a machine , quit . Go inside an withdraw your money instead and make them pay someone 15 dollars an hour to give it to you . If everyone did that the machine would be free .

[oyarde]

In my grocery story u can withdraw up to $100 from the register if you buy anything. The last time I paid for ATM fees was the last time I went to the strip club and that was years ago. Haven't paid ATM fees since then.

Maybe we need Sen. Harkin's amendment on ATM fees.



http://www.huffingtonpost.com/sen-to..._b_572353.html

Che would never pay to see titties at the strip club .

[juleswin]

Che would never pay to see titties at the strip club .

Yes, Che would have grabbed them by the pussy and not even pay at all.

[juleswin]

skip to 2:35

Sen Tom Harkin made and appearance and he gives us all a very clever hack on how to avoid these fees. Simply genius if u asked me.

[luctor-et-emergo]

I pay no fee if I use my bank . I only use it if the bank is closed . But on a Sat afternoon , I will stop & get 40 for gas or the butcher shop or whatever before I use my credit card . Once the economic collapse comes and Danke moves in I will make him run my errands .

Send him to me first, he can finish the oven for me.

[angelatc]

Che would never pay to see titties at the strip club .

To each, according to need.

[euphemia]

Yes , I never use an ATM once I leave town.

I generally don't use plastic for transactions. I carry cash. Is it a risk? Sure. But if a bad guy gets $100, that's all he gets. If he gets my cc#, he has access to everything I own.

[oyarde]

Send him to me first, he can finish the oven for me.

I find the idea of pimping Danke out to build pizza ovens entertaining .