If you ever saw the exceptional Canadian series (available on Netflix), Intelligence, you know that ATMs are an excellent method for laundering drug money. So, if this article is right and considering the fees are of little importance to the launderers, could capping fees mean the only privately owned ATMs will be stocked with drug money?
Some lawmakers have an ambitious proposal: They want to cut ATM fees. Last week, a trio of Democratic senators led by Iowa’s Tom Harkin proposed capping automated teller machine fees at just 50 cents.
Currently, banks and other ATM operators are free to charge consumers whatever they want for using their machine. And backers of the amendment maintain that those who tend feel the brunt of those fees are lower- and middle-income Americans, precisely those who can’t afford it.
[…]
But suppose it did pass – would lower ATM fees really deliver a much-needed break for cash-strapped American consumers? Not necessarily. In fact, some experts suggest that capping fees might result in more harm than good for consumers.One likely consequence would be a reduction in the number of ATMs. […] Independent operators, as a result, might choose to operate only in locations that generated a lot of foot traffic, where a greater volume of transactions would offset the decline in fees. Some community lenders and credit unions might also rethink whether it’s worth having so many ATMs for their customers.
[…]
Operators may no longer see the value, for example, in offering the latest technology such as allowing consumers to email receipts.Even more worrisome is the possibility that banks could decide to impose a fee on all of their ATM users in order to compensate for the costs of running their ATMs.
Could Forcing Banks To Cut ATM Fees Be A Bad Thing?
Maybe yes maybe no but sure would make me feel better. Can we make all bank executives wear sack cloth (burlap) as well?
Something based on the actual cost to operate the machine…nailing someone for $2.50 when they pull $20 out is insane. But hitting me for $2.50 if I pull 10 or 15 twenties out of the machine makes more sense, but I still think that’s too much.
I am sure banks will find other ways to get the fee’s. Like charging businesses more to have ATM in their stores. Convenience costs.
Bank stocks used to be like utilities…boring but safe. With deregulation several things have happened…they’ve become exciting stocks, tremendous market consolidation, user fees have skyrocketed, service sucks, and they’re all about efficiency and profits. A few execs at the top are making fortunes, and the customers get nothing.
What singular business loses money every time you walk in the door?
Forgetting about the drug money issue for a moment, since I’m not sure that the drug lords are that much worse than the bankers (mostly kidding, but not enough).
Does anyone else remember when ATMs first came into common use? Does anyone know why the banks wanted them?
They’re cheaper than paying teller wages, that’s why.
So, the banks created these things to reduce their own costs. Then we get hooked on them. Then the banks charge us a fee for using the device that saves them money!
I’ve been mildly outraged by this on principle (and a bit on principal as well) for a long time.
I say … everyone go back to using tellers. They’ll remove the fees on the ATMs overnight (or charge even more for using a teller, as seems more likely). These bastards aren’t happy enough to steal trillions from us in bailout bucks, government guarantees of toxic assets, cheap fed loans, and the like. They also need to nickel and dime us every step of the way.
Shakespeare was wrong when he said “first kill all the lawyers”, he should have said bankers.
One thing that it would do for me personally, if they started to charge fees for having the card, would be get rid of the card and truly go cash only. One of the problems is the overdraft protection (racket) and fees that come with it. Right now, we keep a good track on the card, but with its convenience, there is the ability to overspend. If you have to keep going to the bank to make withdrawals, you may keep better track of your money.
Didn’t california try something like this a couple of years ago? I remember the result banks stopped allowing other banks to use their ATM’s.
I don’t object to a reasonable profit but these guys screw us anyway they can.
Look at the absurd difference between interest paid to the bank and interest earned on your money.
I have mixed feelings about government involvement in setting prices for private ATM services.
On the other hand, I liked it when the Fed put the screws on the telco’s for charging exorbitant prices for TXT messaging.
well..that would put a dent a few people’s income i know..
apparently a good “wheelchair gig” for making money is to own 3 or 4 of these in high traffic areas.. the people i know charge $1.50 and make between $4000 to $7000 a month on each machine.
IMO, since this is an easy way for *anyone* to make a living or supplement your income, Uncle Sam should keep his grimy paws OFF them.
Don’t let the tired class warfare argument of “it only effects middle/low income people” sway you..
yeah..it effects their ability to MAKE money way more than “voluntarily lose it” on fees..
-the Mirror Image Rule applies: if they tell you they are trying to save the little guy a few bucks, in fact, it’s the opposite they are doing under the guise of *good will*
lying sacks of ****, -the lot of ’em.
-s
Gee, I can’t remember the last time I paid an ATM fee. Silly me, I use my own bank’s ATM or go to a supermarket and buy something that I will eventually need and get cash back.
It’s quite simple, actually. If you don’t want to pay the fee, don’t use the ATM that is charging it.
We do NOT need federal regulation…we need smarter consumers.
I came into the banking world a year ago as an IT admin for a community bank. First Most of the problem banks are the big banks, who would have rightfully went under if they had not been bailed out.
Second, Congress is trying to regulate what they don’t understand. Take the new no overdraft fee’s on debit cards. If you go to a gas station and use the pump the pump sends a 1 dollar transaction to your bank to check if the card is good. Now you pump 40 dollars worth of gas out and then go out that night and bring your account balance down to 5 dollars. That night the gas station batches it’s transaction and that 40 dollars hits your account. Your account is overdrawn by 35 dollars. But here’s the kicker the BANK CANNOT DENY THAT GAS STATION THE MONEY. The bank has to eat the transaction because the of the way P.O.S transaction are conducted. Congress just legalized theft.
Also, what congress doesn’t understand is that most of the ATM fee goes to maintaining the ATM. Most companies that service ATMS (NCR, Diebold, Wincor, ect…) will go under if the service fees are dropped. Not to mention technology development will cease. Don’t want to pay the fee, then don’t use out of network ATMs, or join a bank that credits back ATM fees. It’s not rocket science.
People were able to survive BEFORE these things appeared. So, if they need the fucking things, let them pay for them. How about a $20 fee? I’m all for it.
I hope someone here understands that 99% of these machines are not OWNED by the bank.
Small companies, and individuals OWN the most of them. ANd that SMALL charge(I remember when it was $5+) isnt hurting much, as 80% of all business’s NOW TAKE Credit cards and debit cards.(I remember when FEW took the cards)
ATMs are the new phone booths.
I haven’t used an ATM in 2 months.
I’m as likely to use an ATM as buy a stamp or write a check or buy a CD at a store or use the internet with an ethernet cable plugged into my notebook.
I do all my banking with a credit union. No account fees, no ATM fees. I have checking and savings. Both earn interest with no minimum deposit. I can use my ATM card at any credit union that belongs to a credit union network without any fee. I have used my ATM card in many states without fees. Why would I want to use a bank for anything?
>They’ll remove the fees on the ATMs overnight (or charge even more for using a teller, as seems more likely).
They already did that. I’ve had accounts at different banks that charged if you use the teller, or a higher monthly fee if you use the teller more than a certain amount.
I also now have a bank that doesn’t charge even if I use other people’s ATMs.
How many banks actually charge you money for using their own ATM machines?
I never use an ATM. I carry a modest amount of cash around, which I rarely have to use, and I use a credit card to shop just about everywhere.
I pay the card bill every month, and they reward me by sending me $300 – $400 worth of Target cash cards every few months. They won’t cancel me because I carry exactly a $100 balance, chicken feed for the interest on that amount and the computers won’t kick me out. I love earning points.
Why pay a bank when they can pay you? Bwa-ha-ha-ha-haaaa!
which is not the case here.
ATM bank fees are a proper subject of free market enterprise and competition. Don’t like the fees? Move your funds. We have existed for 200 years without ATM’s, surely we could continue?
Contra–ATM fees affect interstate commerce and the common welfare of the citizens. The banks have unequal bargaining position. LET DEMOCRACY RULE.
I’m totally fine with either approach.
Thanks to # 5 Misanthropic Scott, who said what I was going to say, only better.
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# 16 Hmeyers:
ATMs are the new phone booths.
I haven’t used an ATM in 2 months.
I’m as likely to use an ATM as buy a stamp or write a check or buy a CD at a store or use the internet with an ethernet cable plugged into my notebook.
Actually, I’ve done each of those things in the last year. (Well, except write a check. I haven’t written a check since 2004.) I only patronize banks that charge nothing for using their ATMs and I only use my bank’s ATMs. If I travelled a lot, I would move my accounts to the local bank that advertises “No ATM fees on anybody’s ATMs, _ever_!”
Anyway it’s not the Banks’ ATMs that worry me, it’s the ones in convenience stores and gas stations and just out on the street that I don’t trust.
“Anyway it’s not the Banks’ ATMs that worry me, it’s the ones in convenience stores and gas stations and just out on the street that I don’t trust.”
DITTO..
thats correct..
GAH – here’s a better idea. How about we re-introduce USURY LAWS and save the public from drowning in confiscatory and evil levels of debt? Let the banks charge what they want at ATMs – I’ll stay at my credit union, and learn to use CASH.
@ #16 “I’m as likely to use an ATM as buy a stamp or write a check or buy a CD at a store or use the internet with an Ethernet cable plugged into my notebook.”
You sir are on your way to brain cancer me thinks. or a radiated sack.
Wired Ethernet FTW – all the way for security, reliability and health. Wont someone think of my future children. Wifi laptop sitting above ya babymaking sack – not a good idea unless you want your kids to have an extra arm, may come in handy if they out picking fruit, not so good for picking up women
Fark the banks. Bastard thieves.
Bottom Line, ATMs were made to avoid paying staff.
Don’t charge us to save money, or we call you a ‘bank’