Americans may pay $4 billion in ATM surcharges

Americans may pay $4 billion in ATM surcharges

NEW YORK (7/7/05)--How much does that ATM withdrawal cost? Plenty, especially if you use another financial institution's ATM.

Americans are expected to shell out close to $4 billion this year for using the "wrong" bank's ATMs, up from $2.49 billion in 1998. The average per-transaction fee also is on the rise (Wall Street Journal June 23).

A new study by Bankrate.com, looking at the 10 largest banks in each of the top 35 metropolitan markets, confirms that our desire for instant cash and our propensity for using plastic comes at a cost. The average fee a bank charges a customer for using another bank's ATM increased to $1.35 this spring, up from $1.29 last fall. Non-customers pay more—they incur an average surcharge of $1.40, up from $1.37.

The most common ATM usage fee is $1.50, according to the study, but a growing number of banks charge $2.

A few big banks now are luring customers with free access within their ATM network, or by dropping fees for using another bank's ATMs. Some no-fee or refund promotions are tied to new checking accounts or to customers who maintain a minimum daily balance of $2,500 in their checking account.

ATM fees vary, but previous Bankrate.com studies concluded that credit unions typically charge fewer and lower fees than other financial institutions