CONCLUSION

Surcharges are unfair for at least three reasons. First, surcharges are unfair since consumers already compensate ATM owners, through the foreign fees paid to their own bank that are shared with the network and the ATM owner. Second, surcharge revenue primarily benefits big banks, which tend to also impose anti-competitive higher fees on their own customers, too. Third, the threat of surcharges causes consumers to switch banks to avoid fees. If consumers leave low-cost small community banks, then big banks gain even more market power, exacerbating their ability to charge higher fees and eliminating marketplace choice.

With bank fees skyrocketing, basic services are being placed beyond the reach of many citizens -- about 10% of Americans nationwide now cannot afford a bank account. In order to keep consumers from being ripped off, we need to stop these outrageous fees by big banks. Banning the surcharge is a step in the right direction; it will keep consumer's money in their wallets, and show banks they cannot continue to gouge customers.

Next Section: Recommendations

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