"The national average per ATM transaction is $2.50...on average, the real cost of processing a transaction today is only 36 cents or less."Why should we care? First, because ATMs are like slots to the casino, they're a serious money generator disproportionate to their customer value.
But second, because it punishes folks who don't withdraw a lot at one time:
Some people may think that $2.00 is not much, but here is the other unfair thing about it. The average person going to an ATM machine takes out on average $20.00 or $50.00 to get them through a day or two, and they are charged $2.50 for accessing that money. Yet someone else may withdraw $500.00, and they pay the same $2.50. The burden falls more heavily on low-income and moderate-income people. That is grossly unfair.Sen. Harkin has an amendment to the The Restoring American Financial Stability Act of 2010 (financial reform bill), but he faces uphill slogging.
Shoot your Senator a note and tell them you're tired of being Bank of America's hot nickel slot machine.
4 comments:
I think instead I will shoot my bank a thank you note for reimbursing all the fees that TCF Bank takes. :)
I don't see what is "unfair" about ATM fees. Why isn't Senator Harkin going after designer clothing manufacturers for their huge markups?
I smell re-election campaign.
It certainly is a political move, but it also addresses a certain amount of market failure. Banking has low elasticity, which allows banks to set up fee structures that allow customers less than optimal choice (like health care plans). I know they'll find another way to nickel and dime their profits, but this is one of the last ways I get screwed, so I'm all for it. Populism and consumer protection!
That's a good point about the low elasticity. Most people probably aren't going to switch banks every three months to whoever has the lowest ATM fees.
I guess it depends on whether you view ATM access as a service in the public interest that ought to be heavily regulated (like utilities, insurance, transportation, etc.)
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