The Bigger The Bank...

A survey of 480 banks and 46 credit unions in 28 states by the U.S. Public Interest Research Group revealed some rather interesting statics about ATM charges and surcharges.

Large banks charge more for transactions - an average of $1.35 per transaction. Small banks charge $1.16 average, and credit unions $1.04. 71% of the banks surveyed said they charge for transactions, with their charges ranging from 25 cents to $2.50. Last year, during the same survey, only 45% of banks charged.

With a 58% increase in the total number of financial institutions now charging for transactions, consumer groups have managed to push for legislation in at least 25 states. Ten states have already defeated these anti-surcharge bills. No state has passed such legislation, although in Massachusetts the Senate approved a bill to ban ATM fees, but it has not yet been voted on by the state House.

Bankers argue that not only do consumers not mind paying for the convenience, but they also enjoy the ability to access the ATM in remote, out-of-the-way places.

Copyright © 1998 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 8, No. 5, 5/98