13 February 2016

Chase tests $5 ATM charge

17 March 2011  |  8869 views  |  5 atm inserting card

JP Morgan Chase has begun testing a $5 fee for non-customers using its cash machines.

The bank is trialling the $5 charge in Illinois while users in Texas face a $4 cost. Chase has around 3600 ATMs in the two states.

With many US banks also charging customers for using cash machines outside of their network, withdrawals could cost some users more than $8.

With the Dodd-Frank law cutting off some revenue streams, banks are looking to up the amount they make from ATM fees, estimated to be over $7 billion last year, according to the Wall Street Journal.

HSBC has begun charging non-customers $3 a withdrawal while TD Bank has introduced a $2 fee for customers using other machines.

JPMorgan has issued a statement saying banks "created a network of 9,100 ATMs for the convenience and free use by our customers. It is appropriate to charge non-customers a fee."

ATM Fees Heading Higher - WSJ

Comments: (5)

A Finextra member
A Finextra member | 17 March, 2011, 14:31

Sorry, but charging customers to access to their own cash has got to be the beginning of the end for cash transactions. Consider the options: use a contactless card to 'tap and go' or be charged to access your own money? I take my debit card to the pub these days rather than use cash and guess what; it's quick, nobody minds and there's no charge attached.

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A Finextra member
A Finextra member | 17 March, 2011, 14:37

You're not going to be able to get a decent round of drinks in London with a £15 Transaction Ceiling...

I've had a contactless card for three weeks and still haven't found anywhere to use it - many of the merchant I used to visit that had contactless terminals have had them curiously removed (Starbucks and Krispy Kreme).

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A Finextra member
A Finextra member | 17 March, 2011, 14:54

Banks, after all, are a business at the end of the day and every business needs to be profitable. Banks in the UK have all signed an agreement to allow free use on ATM's while charging ridiculous overdraft rates. It all comes down to smart money management, you are only charged for convenience, if you can plan ahead (which is indeed difficult) you can avoid the charges. If you are hopeless with your money planning, then why shouldn’t you be charged for it?


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Keith Richbell
Keith Richbell - eftpos Payments Australia Ltd. (ePAL) - Sydney | 17 March, 2011, 21:54

Try living in Australia where direct charging has been around for the past two years and fees of $3-5 are not uncommon. These direct fees can be avoided of course if financial institutions co-operate and establish their own sub-network which provides a fee free service to all of their customers. The rediATM service which includes National Australia Bank, Bank of Queensland, the Credit Unions and Building Societies is now the second largest ATM fleet in Australia. It demonstrates how consumers can benefit when banks co-operate rather than compete.

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Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 18 March, 2011, 13:08

The Indian example suggests that it often takes a regulator to make banks cooperate for the benefit of the customer. Previously, home bank ATM cash withdrawals were free but alien bank ones attracted INR 25 (around 0.6 US$) fee. RBI, the banking regulator of India, stepped in a few months ago and stipulated that the latter should be free as well (to customers), with the cost being recovered by the alien bank from the home bank. Of course, it's another question whether and when regulators should intervene... 

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