Want to Take Out Your Money at an ATM? It Soon Might Cost You $5!

[Obama 2012 1,714]

Leave it to Chase to want to pull ####### like this... If they'd stop opening up branches like they are a starbucks, then they could save billions every year...

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http://www.cnbc.com/id/42357880

J.P. Morgan Chase [JPM 46.10 -0.35 (-0.75%) ] and other banks are trying to recoup approximately $30 billion a year in lost overdraft fee income by testing $5 ATM fees, Consumer Action spokesman Joe Ridout told CNBC.

These banks have "historically been reliant on overdraft fees," he said, so they're "coming up with new ways to make up the difference." He said higher ATM fees and other rising costs penalize small depositors.

Nessa Feddis, spokeswoman with the American College of Consumer Financial Services, agreed there are "enormous pressures on banks because of lost revenue."

But she insisted that "most people don't pay ATM fees. Only non-customers who otherwise pay nothing to contribute to the cost of providing the ATMs pay the fee. That is fair because otherwise they are not contributing to the cost of providing the service."

She blamed "price controls that the government is imposing" for drastically limiting debit card interchange fees.

"Those debit card interchange fees — and you’re talking about a penny on the dollar — basically not only provide value to the merchant but they also support the cost of providing debit cards and checking accounts. Until now, we’ve been lucky with (banks offering) a lot of free accounts. I think we will see that go away."

Ridout said the banks are exchanging in political brinksmanship by using the threat of higher ATM fees to "encourage" pressure on the Federal Reserve to "tamp down what this interchange cap is going to be." The Fed issued draft interchange fee rules in December.

Ridout said no one is forcing the banks to charge higher ATM fees, and consumers have other choices if they don't want to pay them.

Crredit unions don't charge fees, he said, because they "don’t aim to turn a profit, they have not relied on overdraft fees that gouge consumers and they don’t pay their executives eight-figure salaries or multi-million-dollar bonuses and they don’t have to come up with rinky-dink fees to support these irresponsible levels of compensation."

Edited April 1, 2011 by Paul and Vanessa

[JohnSmith2007 353]

My bank, PNC, reimburses me for ATM fees. Let them raise the rates.

[Jenn! 918]

Cash is becoming obsolete. It's been quite a while since I had to use an ATM.

[sjr09 155]

If Americans stop opening accounts with Chase, they would stop pulling ####### like this. Then Americans will save billions.

[Zero Sum 305]

Why worry about this if the market is able to dictate that customers won't go for it?

[Amby 490]

Cash is becoming obsolete. It's been quite a while since I had to use an ATM.

me too. I think it's been like 9 months since I used one.

[mawilson 2,133]

I use cash whenever I can.

[Ban Hammer 13,486]

I use cash whenever I can.

ditto. saves on that big shock at the end of the month when it's time to pay bills.

[Amby 490]

ditto. saves on that big shock at the end of the month when it's time to pay bills.

I'm never shocked at the amount of money I spend. I just expect lots and get happy when it's less.

[dalegg 143]

This really doesn't seem like such a big deal. I use the ATM of a bank other than my own like once a year and as long as gas doesn't reach $25 a gallon it will be worth it to drive the extra 2 blocks to save that 5 bucks.

[mawilson 2,133]

ditto. saves on that big shock at the end of the month when it's time to pay bills.

Plus "they" can't track your purchases.

[SuperDuper! 230]

If Americans stop opening accounts with Chase, they would stop pulling ####### like this. Then Americans will save billions.

And if EVERYONE stopped paying taxes, then..... Yea, right.

[sjr09 155]

And if EVERYONE stopped paying taxes, then..... Yea, right.

Your right a sucker is born ever day!

[Gary and Alla 3,694]

I never paid an overdraft fee because I never had an overdraft. I did not need a federal law to protect my finances from bloodsucking bank fees, I took care of that myself (amzing what one can do without an act of congress)

Stupid people were, basically, carrying the operating costs of the bank and clever people were rewarded for being careful with their money. Now, thanks to a new law to protect stupid people the fees will now be passed on in other ways. Did anyone think the banks were just going to take the loss? Did anyone really think the federal government could save us money?