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Thursday
Mar172011

Banks Increasing ATM Fees as High as $5

Goodshoot/Thinkstock(NEW YORK) -- People can soon expect to pay higher fees at the ATM. 

Banks are boosting fees on automated teller machines, which could prove costly for those who use ATMs at banks other than their own, according to Credit.com, an online credit guide.

ATM customers in Illinois are already seeing fees as $5 for non-customer withdrawals at Chase machines.  The bank has also introduced a $4 fee to non-customers in Texas, according to a JPMorgan Chase spokeswoman.

And not only are banks increasing ATM fees, but some financial institutions like TD Bank and PNC Bank have stopped reimbursing customers for fees incurred by using ATMs from other banks.

Banking industry experts say the fee increases may be due to recent legislation limiting banks' income form debit card fees.  Last year, the Dodd-Frank Wall Street Reform and Consumer Protection Act imposed costly compliance regulations on banks.

"The new regulations add up to big money," Bill Bradway of Bradway Research, a bank consulting firm, told Credit.com.  "If the banks don't do anything, their income goes down.  So they're looking for new ways to replace that income, and increasing ATM fees is one way to do that."

But critics of this argument say the growing fees are just due to general banking trends over the last decade.

Whatever the reason, experts agree that using another bank's ATM is not the way to go.

Copyright 2011 ABC News Radio 







ABC News Radio