Customers are slapped with a surcharge of up to 70 percent every time they use an ATM that isn’t owned by their regular bank, a Dailymail.com analysis found.
Consumer rights experts have called for a crackdown on the rip-off shops, which they say harm the “poorest customers.”
When someone withdraws money from the wrong ATM, they are billed twice – both by their own bank and by the ATM provider.
We asked the major US companies what tax they impose on these so-called ‘out-of-network’ transactions.
Huntington Bank came out as the worst offender — its customers can expect a $3.50 fee to use another machine.
Analysis by Dailymail.com reveals the highest fees charged by banks for out-of-network ATM withdrawals
Meanwhile, a non-Huntington customer using one of its ATMs will be charged $4. The company offers withdrawals from $1 to $5, $20 or $50 – though it depends on the machine.
But the fees are the same across the board, as Chase, Santander, PNC, BMO, and TD all charge $3 to their customers who use a different ATM.
It means that a Chase customer who withdraws from a Huntington ATM will be charged as much as $7 – $3 by Chase and $4 by Huntington.
On a $10 withdrawal, this would amount to 70 percent of the entire transaction.
Regional banks typically charge lower fees for such withdrawals, while online companies rarely charge surcharges.
Rachel Gittleman, financial services manager at the Consumer Federation of America, told Dailymail.com, “When a customer signs up with a bank, these charges are explained to them in the terms and conditions, but that is clearly buried in a long document.
‘Then when they withdraw money from another machine, they are warned about the charges being charged by that provider, but they don’t necessarily need to remember that they are being charged by their own bank as well.
“We see this in all financial services where the fees are too high when passed on to the consumer. They do nothing but fill the bank’s pockets.’
Ann Martin, of the comparison website Credit Donkey, said: ‘ATM fees are just one more example of how financial institutions make a surprising portion of their profits off the backs of some of their poorest customers.’
The problem is compounded by the fact that banks across the country have been steadily phasing out ATMs due to the declining use of cash.
According to the Wall Street Journal, the number of ATMs is down from 470,000 in 2019 to 451,500 by the end of 2022. Earlier this year, Chase also announced that it would be limiting the hours of some ATMs due to increasing thefts in the neighborhood.
It means consumers have less choice where to withdraw money, potentially forcing them to use a competitor’s machine.
When asked to explain what the fees cover, the majority of banks declined to comment.
Huntington said it offers several account options, some of which have no fees to use a different ATM.
For example, the Huntington Platinum Perks Checking and Huntington SmartInvest Checking accounts do not charge any fees.
Citibank and Wells Fargo similarly said they offer free ATM withdrawals at any machine on some of their accounts.
Wells Fargo said the charges imposed on non-customers using their machine help “cover the operating costs of maintaining our ATM networks.”
It’s because the banking industry – along with airlines, internet companies and similar services – is coming under pressure to do away with so-called “junk fees.”
The number of ATMs in the US has fallen from 470,000 in 2019 to 451,500 by the end of 2022
The Consumer Financial Protection Bureau previously estimated that Americans spend $120 billion in bank fees applied to overdrafts, account maintenance and transactions.
And President Biden has committed to a widespread crackdown on the “junk fee” economy.
Speaking at the Presidential Competition Council in February, he said unfair allowances “pull hundreds of dollars a year out of the pockets of hard-working American families, especially people who are already struggling to make ends meet — but not anymore.”
The pressure has already led many major banks to eliminate unfair overdraft fees, including Ally Bank, Capital One and Citigroup.