ATM fees reach record high of $2.50
Charges banks place on making transaction on competitor's ATMs rise as well
According to the financial research firm Bankrate.com, ATM surcharges, the fees banks charge in order to use ATMS are surging to record levels. In addition, more banks are cutting back on free checking accounts. Furthermore, the fee charged when you use a machine that isn't your bank's rose for the eighth straight year, up four percent, to a record high of $2.50.
The banking industry has lost income due to an increase in regulations, and that's made free checking accounts harder to find.
Banks traditionally provide ATMs for free to their own customers, but cover their costs by charging consumers who use out of network machines. Greg McBride, senior financial analyst for Bankrate.com says that many people are getting smarter about using only in-network ATMs, which means that the companies are scrambling to make up for that lost revenue.
There is even more bad news for consumers: Bankrate.com also found that 39 percent of non-interest checking accounts provided by U.S. banks are free of charge to all customers, in contrast to 45 percent last year and a peak of 76 percent in 2009.
McBride says the banking industry has lost income due to an increase in regulations, and that's made free checking accounts harder to find.
"Two regulatory changes in particular have cut the legs out from free checking, one putting restrictions on overdraft charges, and the other limiting swipe fees when a consumer uses a debit card," he said.
"Swipe fees" that retailers pay every time a customer uses a debit card were reduced last year, said McBride, which followed after regulations imposed in 2010 that placed limits on overdraft fees.
Swipe fees and overdraft fees helped underwrite the costs of free checking before the regulations were imposed, McBride said. The bank industry is now more selective with free checking accounts, usually providing them only to preferred customers, such as those with direct deposit accounts.
Cutbacks are predictably affecting customer behavior. The annual report found that 72 percent of customers would consider switching accounts if their fees were raised, an increase over 64 percent last year.
The report said that higher-income customers, with at least $75,000 in their accounts, were most likely to switch, with 82 percent saying they would consider changing banks if fees were raised.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
Pope Francis Prayer Intentions for December 2013
General Intention: Victimized Children. That children who are victims of abandonment or violence may find the love and protection they need.
Missionary Intention: Prepare the Savior's Coming. That Christians, enlightened by the Word incarnate, may prepare humanity for the Savior's coming.
Rate This Article
Leave a Comment
More Business & Economics News
- China banks ban Bitcoins - virtual currency hits slump
- Black gold, Texas tea! How a major discovery in a tiny Australian mining town is about to change your world
- Unregulated? Bitcoin goes mainstream and why that's a good thing
- Casino mogul vows all-out war on online gambling
- Prepaid debit card, without fees offered by Google
- Digital killing the dinosaurs, Tribune Co. to cut 700
- Merit found in employees' complaints against Wal-Mart
- Same old tactic: Treasury to issue $1trillion in new debt at beginning of 2014
- PlayStation 4 sells one million units in U.S., Canada in first 24 hours
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.