October 5, 2015

Banks ripping off ATM users

The average cost for using an automated teller machine that isn’t tied to a customer’s bank rose to a record $4.52 per transaction over the past year, according to a survey from data provider Bankrate Inc.

In Atlanta and New York, the average “out-of-network” cost tops $5 and can rise to as much as $8 in some places under certain circumstances, Bankrate said.
The new average rate reflects an increase of 21% over the past five years. The spike is due in part to banks being under pressure from regulators and consumer advocates to reduce other kinds of fees, such as overdraft and certain credit-card charges.
Another reason: People just aren’t using ATMs as much as they used to. Debit-card withdrawals at the ATM are down 41% this decade, according to another recent survey, this one by consulting firm Oliver Wyman.

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