IC Markets

US Customers Charged with Higher Fees for ATM Transactions

ATM Automated Teller MachineBankrate.com has come up with a new report where it states that the banks in the United States have increased the transaction fees in ATM (Automated Teller Machine) for the last 11 successive years for customers who are using out of network ATMs. The banking institutions have increased the fees by more than 50% in the past one decade. The survey shows that a client is paying more than $4.50 for every ATM transaction.

In the recent years, the nations across the globe are moving to a cashless economy from the cash-based economy. Hence the ATM transactions are going to be limited and not as frequent as earlier. But the banking institutions are still required for maintaining ATM networks and pay for the maintenance fees.

Since the number of customers who make use of ATMs for transactions is on the decline, banks are compelled to increase the fees and have a small segment of ATM users absorb these costs.

Greg McBride who is the Chief Analyst at Bankrate.com made the following statement:

It keeps getting easier to avoid the fees, and people are transitioning away from cash. With fewer people making out-of-network ATM withdrawals, the cost of maintaining that network is being spread over fewer transactions.

The survey report from Bankrate.com has analysed ten big banks spread across 25 metro areas to find out the level of ATM fees being charged; areas that are paying the highest and areas that are paying the lowest. The results showed that people residing in Pittsburgh are paying the highest ATM transaction fee which was around $5.19 while the Dallas residents are paying the lowest price which is $4.07.

The Chief Analyst at Bankrate.com further stated that although banking institutions continue to hike the transaction fees, the customers did not need to subject themselves to the rising prices by making proper plans ahead. He went on saying that being charged with $5 for a withdrawal of $50 which was necessary due to an emergency is not a big problem.

The higher ATM transaction fees only pose a problem when the individuals are unable to plan their withdrawals primarily because of poor spending habits. Hence these people end up paying a large chunk of money as bank charges on ATM transactions that could have been easily avoided in the first place.

The Consumer Financial Protection Bureau (CFFB) has ordered banks in 2013 to start displaying their ATM charges either on the screen of ATMs or the withdrawal slips. The report further shows overdraft fees have been increased to $33.38 in 2017 as compared to $33.04 last year. 

US Customers Charged with Higher Fees for ATM Transactions
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US Customers Charged with Higher Fees for ATM Transactions
Bankrate.com has come up with a new report where it states that the banks in the United States have increased the transaction fees in ATMs.
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Steven Rudford

Steven Rudford

Hello, my name is Steven Rudford. Welcome to Top10FX.net. Follow my website for the most trustworthy Forex broker reviews and last minute financial trading news.

IC Markets

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