ATMs and The Hidden Cost of Convenience

BILLSHRINK ATMS AND THE HIDDEN COST OF CONVENIENCE AVERAGE FEE FOR USING ANOTHER BANK'S ATM AVERAGE FEE FOR USING HOME BANK'S ATM $2.00 2009 2008 $1.50 2009 2008 $1.00 $0.50 $0 $1.78 $1.97 $1.25 $1.46 72% OF BANKS CHARGE YOU A FEE TO USE ANOTHER BANK'S ATM BANKS MAKE $2 BILLION A YEAR ON ATM CHARGES WHERE DO THE FEES COME FROM? ATMS CAN COST $9,000 - $50,000 DEPENDING ON THEIR FUNCTIONS MAINTENANCE COSTS ARE $12,000 - $15,000 ATM PER YEAR (CASH REPLENISHMENT, SERVICING, DATA COSTS, ETC.) WHEN ATMS WERE FIRST INTRODUCED BANKS CHARGED A FEE FOR NOT USING AN ATM "Human Teller Fees" ORIGINALLY, YOU COULD ONLY USE YOUR OWN BANK'S ATMS ATM ATM BANK A BANK B IN THE '80s BANKS FORMED "Shared ATM Networks" This allowed customers to access money in their bank accounts, even from other bank's ATMS. ATM ATM ATM Banks paid the network a fee per each transaction, as well as an annual membership SHARED NETWORK fee. Originally, these fees were not passed onto the BANK A BANK B BANK C customers. AS ATM USE INCREASED BANKS GRADUALLY BEGAN TO CHARGE FEES "Foreign Fees" ALSO KNOWN AS "OFF-US" FEES WERE CHARGED WHEN A CUSTOMER USED AN ATM OWNED BY SOMEONE ELSE TOTAL U.S. ATM MACHINES 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 00, 66, 86, L6, 96, "01 '02 *03 '04 '05 '06 SOURCE: AMERICAN BANKING ASSOCIATION ATM FACT SHEET LATER, BANKS BEGAN CHARGING FEES WHENEVER A NON-CUSTOMER USED THEIR ATM TO ACCESS ANOTHER BANK NOW, THE CUSTOMER IS CHARGED TWICE HOW CAN I SAVE MONEY? When using ATMS, withdraw more. When paying for your groceries, get cash back. Use your own bank or credit union whenever possible. Get a bank, like E*Trade, that will reimburse you for ATM fees.