Loss of Revenue Leads To Rising ATM Fees

A recent study has shown that ATM usage fees are rising as banks lose other sources of revenue. In the USA, the nationwide average for an ATM service fee is $3.74, a figure which reflects fees assessed by banks for going-out-of-network as well as the fee the bank that owns the ATM charges non-customers. Most financial institutions charge you for both.



Ron Shevlin, a retail banking analyst at Boston-based research firm Aite Group, said:



"Regulatory changes in the industry have really put a damper on banks' ability to make money on fees."



New legislation has reduced the amount of fees banks are able to charge on credit and debit card overdrafts, which had become a hot topic over the past few years. In the UK, many protested against the allegedly harsh penalties imposed on overdraft customers for exceeding their limit by even 1p.



The recent economic downturn has also had a hugely detrimental effect on the reputation of banking institutions, and as a result on their ability to profit from what are seen to be unfair fees and surcharges. As a means of countering such restrictions, it appears that ATM fees are on the rise.



In the US, some ATMs charge non-customers of that bank $5 for a single transaction. In fact, when a non-customer uses another bank's ATM, they are charged twice; once by the ATM owning bank, and again by their own bank.



However, there are various ways to avoid paying what may be seen to be exorbitant surcharges to withdraw your own money. If possible, you should always use your own bank's ATMs. By always having a good idea of the locations of these, hopefully you will never need to rely on another bank and be charged for it.



However, we all know this is not always possible, especially when you are in unfamiliar surroundings, or just need to get money fast. In this case, there's not a lot you can do. If you are going to be travelling away from hoem, it may be a good idea to find out the locations of your own bank's cash machines ahead of time.



Alternatively, there is a network of surcharge-free financial institutions which allow customers to withdraw their funds for free. Research who is covered by this, and get to know where they are located.



So, while banks have been curtailed when it comes to credit and debit card fees, the latest ATM trends show that they are hoping to counter such losses by increasing withdrawal fees, trying to regain some of the lost revenue from other sources.