Need help clearing up a debate....

Should an ATM surcharge be reported as a "qualified distribution" or it is not considered a reportable transaction?

The answer seems obvious to me... However, there is a big debate. Confirmation is requested from someone other than me.

From Publication 969:

HSA administration and maintenance fees withdrawn by the trustee are not reported as distributions from the HSA.

I guess I would also wonder why a bank would allow ATM withdrawals from a HSA. What qualified medical expense is that??? Although that is really left to the HSA holder to justify.

Some HSAs allow the card holder to reimburse themselves for expenses paid out of pocket (and advise receipts be kept of course). Others do not allow ATM withdrawals.