ATMs Need to Disclose ALL Fees. Let's put a stop to $6+ ATM Fees.
By
Staten Island, NY Posted: 10/27/2014 1:00:00 AM
Not long ago, people complained when ATMs started charging 50 cents to withdraw funds. Now that ATMs cost as much as $6 or more, why aren't people complaining? Perhaps they don't know the whole story.
I would often use a Citibank ATM instead of my own bank, because it was 2 minutes closer to me and it had better parking.
Every time I used that ATM, it warned me that they charge $3 to use their ATM. That's only half true. Each ATM withdrawal was actually costing $6, because my own bank charges a $3 fee too, but the ATM doesn't tell you that. You only find out if you look at your bank statement.
The funny thing is I discovered this accidentally. I generally ignored the warning about the $3 ATM fee, because as far as I knew, my bank claimed that they waived a certain number of third party ATM fees each month.
One day, I decided it would be a good idea to check to make sure my bank was actually waiving those fees, mainly because it recently merged with another bank. So, the day after using the Citibank ATM, I logged into my account to see if there a $3 refund. What I found was the opposite... a $3 fee from Citibank, followed by another $3 fee from my own bank.
So my $20 ATM withdrawal cost me $6 in fees.... essentially a 30% FEE. Are they banks...or loan sharks?
So, I called my bank and asked them if the second $3 fee was a mistake. It wasn't. I was upset, so I decided to call some other banks to see if it made sense to find one that doesn't charge a fee. My first call was Citibank. I asked them if they charged a fee if I used another banks ATM. To my surprise, they said they charge $3 if you use another bank's ATM. Really? Why doesn't the ATM tell you this?
I know banks won't stop charging fees, but if BOTH banks are going to charge a fee, the consumer needs to be told what the TOTAL cost of the transaction will be.
If more people knew they were paying $6 to use the ATM, instead of $3, they would reconsider using an ATM at another bank.
Personal note: I've completely stopped using third party bank ATMs. I you need cash, and you are not near your own bank, buy something in a store like Target or Walmart that let you get cash back. There's no fee from the store, or your bank.
Do you know how much YOUR bank is charging for using another bank's ATM? NJ.Com created a tool that lets you see BOTH transaction fees.
NJ.Com - How much are you really paying in ATM fees? Use our calculator to find out.
CNN Report on the Second Hidden Fee
According to NJ.Com, as of October, 2014 here are some of the hidden fees of some common banks.
• Bank of America charges its customers $2.50 for using other banks’ ATMs, and charge non-customers $3 to use its machines.
• Capital One charges $2 for using other machines, $3 for non-customers.
• Valley National Bank charges $2 for withdrawals at non-Valley ATMs, and $3.25 for non-customers to use its ATMs.
• Wells Fargo charges $2.50 for its customers using other institutions’ ATMs – and charges a $3 fee for non-customers using its own machines.
• PNC Bank charges $2.50 for customers using other ATMs – and it charges non-customers $3.50 to use PNC ATMs.
• Santander (formerly Sovereign) charges its customers $3.50 to go elsewhere, and $3 for non-customers to use its ATMs.
• Citibank assesses a $2.50 fee for its customers using other ATMs, and $3 for non-Citibank customers to use it machines.
• TD Bank customers are charged $3 every time they use another bank’s ATM – and another $3 for non-customers.
• HSBC has a $2.50 charge for its customers to withdraw from other ATMs — and a $3 fee for those who don't have an HSBC account to visit an HSBC machine.
Joe Crescenzi, Founder
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