It’s Coming: The $5 ATM Fee

[The Straight Story]

It’s Coming: The $5 ATM Fee

Big banks have been fighting new federal rules that seek to limit consumer fees on debit cards and overdraft charges. But in the meantime, the banks have a plan B.

Deal Journal colleague Robin Sidel weighed in with an eye-opening story this morning about several banks changing their ATM policies to rake in more fees.

J.P. Morgan’s retail bank, Chase, is even testing fees of $5 in Illinois and $4 in Texas for people who use a Chase ATM and aren’t a bank customer.

The fees already are big business. As Robin wrote, ATMs generated $7.1 billion in fees last year, according to consulting firm Oliver Wyman. Of that, banks collected roughly $3 billion from charging their customers for using another institution’s ATM.

http://blogs.wsj.com/deals/2011/03/16/its-coming-the-5-atm-fee/

[lib2DaBone]

1. Watch how fast I quit using an ATM Card... Idiots...

[Jmaxfie1]

2. If you want to stimulate the economy this has to be one of the dumbest things you could do...

but if you want to become a rich shareholder I guess it makes since.

[stockholmer]

3. JP MorganChase raised its rates internationally as well-tripled the exchange fee, $5 a withdrawl,etc

One of my best friends here in Sweden is an American from New York, and since Morgan took over his Wshington Mutual accounts, he says it costs him an extra $700 to $1000 US a year, as they took away his free checking, give worse exchnge rates vs the krona, and raised other fees 4 times in last 18 months.

[dixiegrrrrl]

10. And yet, he STILL banks there??????

amazing.

[JDPriestly]

4. Inflation in another form.

I wonder if they will start charging for deposits. That would be hilarious. What is a bank for if not for holding deposits?

I pack an overnight bag on the rare occasions when I fly somewhere. I really object to the baggage fees.

I remember a time when you got a warm meal on an airplane. The food was not great, but you weren't stuck eating a hamburger in some hole in the wall of the airport with glaring neon lights after your flight.

That was way back when the US still manufactured and exported products in large enough quantities to support a good economy. That was back in the days when people actually had real jobs where they did something useful for society.

[Faux pas]

5. Greed is not good, in cases like this it might be the difference

btwn getting a gallon of milk or a gallon of gas for a lot of people.

Wonder if Trump will run on the dem ticket? :evilgrin:

[BzaDem]

6. If they could maximize profit by having 5 dollar ATM fees, they would have done so long ago.

Of course, they can't, because then fewer people would use ATMs (or use them less often with larger amounts each time), or they would switch to another bank that isn't gouging. Supply and demand.

To believe otherwise, you would have to believe that they COULD have been charging 5 dollar fees to get at least as much profit for the last several years, but have left the fee at 3 dollars out of the kindness of their own hearts. I doubt it.

[Statistical]

9. Well all pricing is relative.

Inflation has reduced the value of a dollar. Scratch off lottery tickets were initially $1, then $2, then $5. I was surprised when I went into a gas station (usually pay at the pump) and say $10, $20, and $30 scratch off lottery tickets.

Since a dollar is worth less and less likely people are pulling more out. Say if the average withdrawal in 1980 was $20 with $1.50 fee that is 7.5%. Maybe today the average withdrawal is more like $50 making the $5 fee 6.25% to 10%.

I mean I honestly never through $5 coffee would catch on and at my work people get them daily. Not as a treat but as a daily ritual. One girl gets a cofee and muffin every day. $10. Thats almost 4 grand a year on coffee and muffins.

Still I think $5 ATM is stupid because honestly you don't really need cash. Hell the soda machines at my work take credit cards. I asked the guy who refills the machines about it. He said it was because Pepsi noticed vending machines sales going down. Not overall sales but vending machine sales kept declining everyear. They did some research and found out many customers no longer carry cash.

[dixiegrrrrl]

11. The banks have been publicizing dire threats of fees in light of coming regulations.

edit for brain fart

[leftynyc]

7. I hope everyone

drops whatever bank tries this and moves their money. It's the only language they really understand. I realize this will be a hardship for rural folks who aren't bombarded with bank choices.

[Pryderi]

8. I thought there was a cap put on these fees back in the 90s.

[cbdo2007]

12. So it's easy to get them to not charge these fees. Just stop using other banks ATM

machines.

I won't even do it for the $2.00 they charge now, and I'm not sure why anyone else would either.

[devils chaplain]

13. As for me...

Goodbye ATMs. Hello credit cards that give me cashback and that I pay off every month. Also, bank tellers are going to find some new work to do.