Everyone hates ATM fees when they go to get money out of their bank accounts. Well the Government Accountability Office's report has some bad news:
http://www.bizjournals.com/...
Fees for ATMs operated by financial institutions (about half of all ATMs) increased to an average of $2.10 per transaction in 2012 from $1.75 in 2007, according to the report by the Government Accountability Office.
Those fees ranged from 45 cents to $5, the GAO said.
For ATM’s maintained by independent operators, the average fee in 2012 was $2.24. They ranged from $1.50 to $3 per transaction.
While financial institutions generally offer free ATM service to their customers, they include surcharges for customers of other banks, the report said.
The report also found that large banks were more likely to have higher surcharge fees than community banks or credit unions. - Albuquerque Business First, 4/12/13
This report caught the attention of Senator Tom Udall (D. NM) and four of his colleagues in the Senate:
http://www.tomudall.senate.gov/...
"The number of ATMs has more than doubled in the last 15 years, and as more consumers depend on them for their banking needs, the fees must be fair," said Senator Udall. "Fees can stack up - especially in rural areas with limited bank access -- and paying upwards of $5 dollars per transaction to access your own money is beyond reason." - tomudall.senate.gov, 4/11/13
Udall was joined by Senators Bernie Sanders (I. VT), Chuck Schumer (D. NY), Tom Harkin (D. IA) and Sheldon Whitehouse (D. RI) in their outrage over the GAO report. Here's a little more info that will make your blood boil:
http://politicalnews.me/...
According to the report, consumers face two different types of fees when using an ATM. First, consumers can face a surcharge fee assessed by the operator of the ATM. GAO estimates that the prevalence and amount of ATM surcharge fees charged by financial institutions have increased since 2007 and that the estimated average fee increased from $1.75 in 2007 to $2.10 in 2012. The report also found that large banks were more likely to charge higher surcharge fees than community banks or credit unions. GAO’s analysis of a sample of 100 ATMs run by independent operators found that the average surcharge fee was $2.24 and noted that consumers can have a difficult time avoiding surcharges at these ATMs.
In addition, consumers can also face foreign fees for using an ATM not owned by their financial institution, even though their financial institution is compensated for the cost of the transaction through interchange fees. Like surcharges, the report found that average foreign fees have increased from $1.36 in 2007 to $1.42 in 2012. In addition, GAO found that large financial institutions were more likely to charge foreign fees and charge significantly higher foreign fees than their smaller competitors. - Political News, 4/12/13
Udall has long been an advocate for capping ATM fees. He was one of the original co-sponsors of Senate Amendment 3812 that was part of the Restoring American Financial Stability Act of 2010:
http://www.gpo.gov/...
(D) REGULATION OF FEES.–The regulations prescribed under paragraph (1)shall require any fee charged by an automated teller machine operator for a transaction conducted at that automated teller machine to bear a reasonable relation to the cost of processing the transaction, and in no case shall any such fee exceed $0.50.
Of course the ATM industry was not happy about this amendment and lobbied hard to have it modified:
http://atmequipment.com/...
In response to opposition from a myriad of sources, Senator Tom Harkin's (D-Iowa) proposed amendment (SA-3812) has been modified. Originally containing language which would limit any and all ATM fees to no greater than $0.50, the new amendment (SA-4085) calls for any fees to be fair and reasonable, and to be based off the withdrawal amount. Further, SA-4085 transfers the authority to regulate ATM fees from industry professionals to a federally-appointed agency. The efforts made to protect the ATM industry from government intervention have produced results. SA-4085 is still being debated and is expected to be sent to vote soon. It is necessary now to renew the effort! - ATM Equipment, 5/19/10
But I am happy to hear that Udall and his colleagues are renewing their call for fairer ATM fees. If you'd like to get more information, feel free to contact Udall, Harkin, Sanders, Schumer and Whitehouse for more details:
Udall: 202-224-6621
Harkin: 202-224-3254
Sanders: 202-224-5141
Schumer: 202-224-6542
Whitehouse: 202-224-2921