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ATM Fees

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Established Contributor

ATM Fees

Are ATM fees purely for making banks profit? I cannot see how electronically sending funds between banks actually costs them money.
Message 1 of 13
12 REPLIES 12
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Epic Contributor

Re: ATM Fees

Most ATM machines are owned by companies other than the banks. The banks do make a profit but the owners can make hundreds of thousands a month if they own enough.

I was watching a program about how a broke ex con became a millionaire by getting into the ATM business. I think it was in Hawaii.
Message 2 of 13
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Moderator Emeritus

Re: ATM Fees

The places that allow the ATMs to sit there on their premises makes $ off of it as well.
 
 
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Message 3 of 13
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Moderator Emeritus

Re: ATM Fees

Many years ago I was offered an ATM Machine franchise. I had passed on it and I only looked into generalities. But it seems like it was $2-3k for each machine and I would solicit local delis, stores, restaurants, etc to house these machines in exchange for a potion of the ATM fee. Seems like the fee was set at $2 then and I would pass a quarter from each transaction to the business and keep the rest for upkeep, maintenence, profit, etc. It only seemed worthwhile with 10 or more machines.
Message 4 of 13
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Senior Contributor

Re: ATM Fees

I avoid ATM fees by making "cash back" purchases at pharmacies and supermarkets.
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
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Message 5 of 13
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Valued Contributor

Re: ATM Fees

It just cost me 4.50 to take out 20 bucks.......................bummer when your own bank charges you.
Message 6 of 13
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Moderator Emerita

Re: ATM Fees

Yay for USAA. They don't charge you for using another bank's ATM for the first 10 w/d's per month, AND they reimburse your charges by the other banks up to $15 per month.

ATM's are a great way for banks to get money from you, along with massive overdraft charges, now that competition has forced so many of them into offering free checking.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 7 of 13
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Established Contributor

Re: ATM Fees

I second Matt's suggestion of cashback purposes... In areas with $2 and $3 ATM fees, it is more cost effective to buy a pack of gum and get money back. :-)
08/01/2008 - 472 EQ; 523 TU; 454 EX
03/01/2009 - 574 EQ
08/08/2009 - 648 EQ
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05/14/16 - 762 EX
Message 8 of 13
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Moderator Emeritus

Re: ATM Fees

A couple years back, if I recall correctly, a few cities in California (San Francisco comes to mind) tried to ban ATM fees. I think it actually was voted on by the people. However, the bans were overturned by the courts because they determined that nobody can be forced into providing a convenience for free.
Message 9 of 13
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Established Contributor

Re: ATM Fees

The biggest thing that bugs me about ATM fees is that I bank with BofA, and if I use an ATM from a different bank they charge me $2. But if someone with another bank uses a BofA ATM, they get charged $1.50! (at least it was last I checked, it may have gone up) Why would they charge their own customers more? If you're going to stick it to someone, make it the strangers. Seriously. Admittedly this isn't a HUGE problem, since BofA ATMs are friggin everywhere. But it's still annoying.
Message 10 of 13
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