Bank of America raises ATM usage fees

[Doc]

Bank of American raised it's ATM usage fee to $3. It is predicted that other banks will follow suit. Since they started charging .50 cents for ATM usage I have curtailed mine greatly. I only use the 'free' ones the majority of the time. I have checked and just last month I was charged .50 cents to use my 'debit' card at a retailer. If I use the same card as a credit card I do not see the .50 cent fee. I assume that is because the credit card companies get a percentage of the purchase price every time their card is used. So, one way or the other the card issuer makes out.

I remember when the frigging ATM's were free to use. Guess they did that to get us hooked. I understand it does cost to put the ATM's out there for us to use, but again the financial institutions are taking advantage of those who can least afford it, just like they do with NSF checks. I'm not saying the prices should be regulated, but when one raises their price and the rest follow just because they can get by with it; it appears to be very close to price fixing to me.

 

[bczoom]

That's not nice...

I haven't looked into the details but my bank says it'll pay for any/all ATM charges wherever the card is used. I don't use ATM's much (a couple times a year) so I don't pay much attention.

About 8-10 years ago (which is when I believe all this started), my bank had an option where I paid about $20/year and there would be no ATM charges regardless of what bank I used.

 

[Doc]

That's not nice...

I haven't looked into the details but my bank says it'll pay for any/all ATM charges wherever the card is used. I don't use ATM's much (a couple times a year) so I don't pay much attention.

About 8-10 years ago (which is when I believe all this started), my bank had an option where I paid about $20/year and there would be no ATM charges regardless of what bank I used.

Brian, if you only use it a couple times a year, then that 20 dollars a year is not such a good deal. I'm sure I don't rack up 20 bucks a year in fees. I would guess it's less than 5 dollars. We do have a few free ATM's that are rather handy though.

 

[bczoom]

Brian, if you only use it a couple times a year, then that 20 dollars a year is not such a good deal.

8-10 years ago, I worked on the road, all over the country. I used ATM's a lot and didn't want to get into all the fees so it made sense at the time.

Now that I work from home, I rarely use them so I don't use that $20 option.

 

[Dargo]

Hmm, I can't say that I've ever used an ATM since I was in college. That is how my parents would send me money; put some in my account and I could get it via my ATM card. That worked fine until I found out the hard way that the machine would destroy your card if you made too many attempts to get money that did not exist in your account.

I honestly don't think I've ever had an ATM card since.

 

[Cityboy]

I remember when the frigging ATM's were free to use. Guess they did that to get us hooked. I understand it does cost to put the ATM's out there for us to use, but again the financial institutions are taking advantage of those who can least afford it, just like they do with NSF checks. I'm not saying the prices should be regulated, but when one raises their price and the rest follow just because they can get by with it; it appears to be very close to price fixing to me.

There is a simple solution here. Stop using ATM's. I have not used an ATM in 20 years and will likely never use one again. I also do not use the fake credit cards (debit cards). I make all my monthly purchases on a credit card like Discover, or BOA's World Points Visa that pays me to make purchases I was already going to make and pay the balance in full each month. I pay for groceries, fuel and utilities, etc., on these cards.

As to financial institutions allegedly taking advantage of "those who can least afford it"; Why are these people bouncing checks in the first place?
Should they be able to bounce checks for free?

Are people forced to use ATM's? Of course not. How can using something voluntarily and knowingly paying a fee be price fixing?

An NSF fee is a small price to pay for what could, in reality, be rightfully considered Theft-by-Deception and prosecuted. Sure, mistakes happen, but by dilligently excercising personal responsibility, these types of mistakes can be avoided 100% of the time.

 

[Doc]

Yep, it's a simple solution for some. I say the banks take unfair advantage of those who can least afford it because I do not believe it costs the bank $3.00 to process an ATM transaction, nor does it cost them anywhere close to 25 or 30 dollars to process an NSF check. I'm all for making money but the charge should be somewhere in line with the costs. If I sold cars and I payed 20k for the vehicle and I priced it at 60k I probably would not sell any. Yet a bank might have to pay 10 cents for an ATM transaction now charges 3 dollars for said transaction. So, simple enough, I won't use it. But others with a tighter budget are in situations where not using it is much harder. If they are in a paycheck to paycheck lifestyle you end up floating checks on occasion and using an ATM more. I base this on personal experience only. Back in the 80's I was in that situation much more than I care to remember.
All I'm saying is a reasonable profit is expected, but I believe banks take advantage of their situation and when they all follow along people have no choice but to pay the price if they want the convenience. More affluent customers will carry extra cash or use a credit card to avoid using the ATM, others without so many options will pay a fortune in fees because of the situation they are in. To me that is taking advantage.

 

[Cityboy]

It still comes down to personal responsibility, Doc. Who among us has not struggled at some point in our lives? I managed to not kite any checks during my lean years because I was taught by Depression Era parents and genetic common sense that you can't buy what you don't have the cash to buy. My mom always quoted "The Borrower is Slave to the Lender". That stuck with me to this very day because I refuse to be anyones financial slave.

As to profits, who is to say what any businesses profit should be? The markets, while imperfect, is where this must be sorted out. People must learn how to handle and be responsible for their own financial situation. Sometimes it takes a few $30 NSF fees to get the message across to certain hard-headed individuals. Don't want to pay that fee? Don't kite checks. Don't like ATM fees? Don't use ATM's. It truly is that simple. Need more money? Work over-time or get a part-time job, mow lawns (that's what I did), rake leaves, clean gutters....there is no shortage of opportunity to earn sweat equity in America.

Again, it all comes down to two words: Personal Responsibility

 

[Doc]

No argument from me on personal responsibility. But that should also apply to businesses. My point, is that the banks should go for a reasonable profit. That's all. Have you noticed that when one financial institution raises rates slowly but surely they all do. And dang if the rates don't end up very very close. Many times exactly the same. Is this because of costs driving up the costs of doing business? Many times I suppose it is. But I know IT. I know accounting. I know the approximate cost of one ATM transaction and to charge a customer $3.00 for that privilege is outrageous.

 

[Cityboy]

It's the market, Doc. The market adjusts to what consumers are willing to pay, regardless of what an individuals opinion of how much a "reasonable" profit "should" be. The other banks see people paying the fees and adjust accordingly. If there is a consumer backlash, they will adjust again.

We all, as consumers, have the freedom to choose. I choose to not use ATM's.