$5 Fees May Be Coming to an ATM Near You

Posted: April 1, 2011 in US News

Margo D. Beller
CNBC
April 1, 2011

J.P. Morgan Chase [JPM 46.62 0.52 (+1.13%) ] 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.

Read Article Here

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s