Chase Tests $5 ATM Fee

Bank customers could face $5 ATM fees.

In Illinois, JPMorgan Chase is testing $5 fees for non-customers, in Texas, it's $4. If the trial runs make enough money, the fees could be rolled out nationwide, the Wall Street Journal reports.

HSBC has already hiked rates, charging all non-customers $3 for using the banks' machines. TD Bank, and PNC Bank are now charging their own own customers $2 for using out-of-network ATMs, unless they sign up for accounts with monthly fees as high as $25, the paper reports.

Faced with losing billions of dollars in revenue once new regulations limiting debit card and overdraft charges kick in as part of the Dodd-Frank financial reform bill, banks are looking for new ways to make money. The same scramble led Chase to consider a $50 spending limit for debit cards.

Banks are increasingly charging both for using their ATMs if you're not a customer, and using another banks machines if you are. Banks made $7.1 billion from ATM fees last year, the WSJ reports, $3 billion from charging their own customers for using out-of-network ATMs.

"It's easy to compare debit cards by looking at the monthly fee, so banks are going to try to minimize the monthly fees and load you with fees in different ways -- and ATM fees are going to become one of the most popular ways to do that," Odysseas Papadimitriou, CEO of CardHub.com told CNNMoney.

Banks justify charging you to get hold of your own money with claims that ATM networks are expensive to build and maintain. But, the WSJ reports, most of the 425,000 ATMs in the U.S. are not owned by banks, they're owned by the companies who place terminals in delis, bars and casinos.

Comments

[SitandStay]

10:59 PM on 05/16/2011

The banks are so desperate now, they are on their hands and knees scrapping up the quarters. They know exactly what they have done to this country and are merely intent on bleeding the rest out. If you have very little in your account and are somewhere in a position that that you can not go to your own bank....well, you make a withdrawal, not knowing about the fee, which possibly puts you into an over-drawn status.....bingo! $30 for the OD fee, $5 for ATM usage at that bank, $5 for your bank. It's a win-win! Multiply that by millions of the people in dire straights but still using the big banks......quite lucrative.

[jnw147]

01:59 PM on 04/28/2011

It's time to stop banking at Chase!

[SitandStay]

10:50 PM on 05/16/2011

We have recently, by bankruptcy on 2 of their accounts.

[AustinMan]

09:29 AM on 04/19/2011

So I, like many of you, am tired of paying crazy fees to my mega-bank. I found this website - www.checkingfinder.com - and found a free, relatively high-rate checking account that offers free ATM fee refunds nationwide. I do have to do a few things every month - like use my debit card or have a direct deposit - but I do those anyway.

Just thought a few people here might find it useful, given the topic of conversation.

[trialballoon]

01:11 PM on 04/18/2011

It's ludicrous I agree, but I can't help but laugh when it reminds me of the SNL digital short:

http://www.youtube.com/watch?v=0md1sLlsQGA

[Peter J Suarez]

02:32 PM on 03/30/2011

efffffffffffffffffff chase. so much for the middle class. looks like we are fostering a feudal system lately.

[Aftab Singh]

09:07 AM on 03/28/2011

Hmm, maybe they think it's a good way to stop people withdrawing!

It's quite frankly a preposterous thing to do if you ask me. The stated purpose for a banking institution is to provide a depository service. You put your dollar notes in the bank, and they promise to give them back whenever you like. Now they're going to charge you to take it out?

For me, this is just another symptom of the long-term trend that we seem to have embarked on: the burden of owing people dollars (debts & deposits) is rising... Ironically, the hysteria of today (if any) is directed at the polar opposite: hyperinflation/severe inflation.

[AbeMartin]

11:35 AM on 03/23/2011

It costs banks less than one half a cent to electronically process an ATM transaction--whether it is for a "customer" or "someone else."  On the east coast, Wa-Wa convenience stores provide cost-free ATM's because they consider it a good way to attract people into the shops to buy something rather than simply gassing and going.

JP Morgan Chase and their ilk make pigs rooting through fresh slops look like models of table etiquette.  In the past, I would have called these parasites 'pigs', but that really is disrespectful to both domestic swine and their escaped relatives sus scrofa, who actually serve important needs as food sources.

[SitandStay]

11:05 PM on 05/16/2011

I remember a time when the behavior that many candidates exhibit would have issued no press coverage, but now it's a prerequisite. F&F for your bio.

[timetocookdinner]

10:51 AM on 03/20/2011

I bank with a credit union and get cash back at the grocery store for free. When I banked with Chase it seemed convenient that they had more locations than my credit union, but the truth is that I rarely have to actually go to the bank, and Chase found many, many sneaky ways to slap random charges onto my account. It was a definite financial loss to bank with Chase with zero advantages. I love my state credit union!

[paulwl]

10:39 AM on 03/20/2011

Duh, CREDIT UNIONS HERE WE COME!!!!!! I MEAN EVERYBODY!

[dolphin333]

09:20 AM on 03/20/2011

The AUDACITY of GREED ! ! !

[osofar]

05:47 AM on 03/20/2011

ATM's were designed primarily to replace human beings. Why anyone gives money to a megabank instead of a credit union is beyond me!

[AussieHugh]

10:23 PM on 03/19/2011

Wow $5 seems a bit excessive. In Australia the usual charge for an ATM operated by another bank or ATM operator is usually $2. Using your own banks network is usually free.

We usually have a monthly account keeping fee of $5- $10 on all bank accounts do you guys have that? Perhaps thats the difference.

[Fairand Informed]

07:45 AM on 03/20/2011

That may be it. Where I bank I don't pay a monthly account fee, or a fee for online banking or to use my own bank's atm, or to use my debit card. I can use another bank's atm for free a few times a month but I'll pay a fee to that other bank if I use their ATM. I haven't done that in so long that I don't remember what it was but I think it was in the $2 range.

[Fairand Informed]

05:46 PM on 03/19/2011

If a credit union or community bank meets your needs, do move your money there, they are more closely tied to the communities they serve and they deserve a chance to earn your business. However, enjoy the lack of fees while you can. The organizations that represent them, CUNA, ICBA (among others) have already explained that the Durbin amendment (to the Dodd Frank Act) will cause them to charge fees as they never have before. One Credit Union president testified about it to congress and even Dodd and Frank themselves think it'll cause extra fees. When it happens, don't blame your community banker; blame government overreach. The government really shouldn't be choosing who wins and who loses but Durbin did just that and it will hurt community banks and credit unions and then us.

[mountainweb]

10:37 PM on 03/19/2011

Welcome to Obama socialism, bigger government at YOUR expense....

[Mingpeke]

08:45 AM on 03/20/2011

So we should have just continued on letting them wreck us. Frankly the Dodd Frank act doesn't go far enough in it's protections.

[seeksthetruth]

04:52 PM on 03/19/2011

We must stop enriching the banksters. If you haven't done so already, consider moving your money to a Credit Union. Most of them have reciprocal relationsh­­­ips with other CUs so you can use any ATM in the network for free.

http://www­­­.creditu­n­i­on.coo­p/­cu­_loc­ato­r/q­ui­ckfi­nd.p­­hp

[Jambala99]

01:26 PM on 03/19/2011

...Exactly why I FIRED my "Rape and Pillage" bank (Wells Fargo) and went with a local community bank (Mechanics Bank). There are NO atm fees even when I use other banks. I refuse to give the people that brought down our country another penny. You should do the same....STARVE THE BEAST!!!!

Do It Today!
http://moveyourmoneyproject.org/