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2003 SURVEY FINDING ONE: CHARGING CONSUMERS TWICE AND BANK DOUBLE DIPPING ARE WIDESPREAD IN NEW YORK Almost all (99%) of the bank-owned atms surveyed surcharge and the average fee assessed by the bank-owned atms surveyed that surcharge is $1.58 (up from $1.49 in 2002). Banks that assess a surcharge fee of $1.75 or more include charter one, hsbc, key bank and m&t bank. The highest surcharge assessed by a bank-owned atm was $2.50. 100% (up from 88% in 2002) of the banks surveyed assess a foreign atm withdrawal fee and the average fee assessed by the banks surveyed that charge a foreign atm withdrawal fee is $1.21. The highest foreign atm withdrawal fees were assessed by bsb bank & trust ($1.75), charter one ($2.25) and key bank ($2.00).

ATM SURCHARGE ($1.58)
+ FOREIGN ATM WITHDRAWAL FEE ($1.21)
CHARGING CONSUMERS TWICE ($2.79)

ATM surcharge fees are unfair and unnecessary because the consumer pays two fees for a single transaction (charged twice) and banks collect two fees for one transaction (double dip).

When consumers use an ATM that is not owned by their bank (owned by another bank or an ISO), they typically pay two fees for that transaction—the foreign fee and the ATM surcharge fee. Moreover, ATM surcharges create two flows of revenue for bank ATM owners; surcharge fee + interchange or network fee. A portion of the ATM fee consumers pay their own bank when they use another bank's ATM (the foreign ATM withdrawal fee) is retained by their bank. The remainder is distributed by their bank to the network, which retains a portion and distributes the remainder to the ATM owner. Even if the consumer's bank does not assess a fee (although 100% of the banks included in our 2003 survey do assess a foreign ATM withdrawal fee), their bank pays the network, which distributes a portion to the ATM owner.

Thus, with surcharging, the ATM owner collects two fees for one ATM transaction: one from the network (indirectly from the consumer) and the other directly from the consumer and the typical consumer pays two fees: (1) the foreign fee their own bank charges to use another bank's (or non-bank ATM owner's) ATM; and (2) the surcharge assessed by the ATM owner and deducted from the consumer's account at the time of the transaction.

The combined fee is anti-consumer and can make electronic banking cost-prohibitive. The two highest fees identified in our 2003 survey—a $2.50 bank ATM surcharge fee and a $2.25 foreign ATM fee—mean consumers may pay as much as $4.75 to access their own money electronically.

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Attachments:

ATM Fees in New York State

ATM Surcharges at ATMs with Hybrid Owners

ATM Surcharges at ATMs owned by Banks on Long Island

ATM Surcharges at ATMs owned by Non-bank Independent Service Operators on Long Island  

ATM Surcharges at ATMs owned by Non-bank Independent Service Operators in New York City

ATM Surcharges at ATMs owned by Banks in New York City

ATM Surcharges at ATMs owned by Non-bank Independent Service Operators in Upstate New York

ATM Surcharges at ATMs owned by Banks in Upstate New York

ATM Survey Form for Non-Bank-Owned ATMs

ATM/Debit Card Survey Form for Bank-Owned ATMs