Consumers should start preparing for higher bank and ATM fees. Two recent reforms that were supposed to help consumers have prompted the higher fees. The first is that banks are no longer allowed to charge overdraft fees on debit card purchases without permission. The second is a drastic reduction in interchange fees on debit cards. These are the fees that banks charge merchants to use their debit cards.
These reductions can lead to the loss of up to $10 billion in addtional revenue. J.P. Morgan Chase & Co., TD Bank Financial Group, and PNC Financial Services Groupare already changing their ATM policies to collect more fees. The standard in the banking industry for taking money out of rival banks ATM’s is about $3, a number of these banks are exploring charging up to $5.
Last year banks collected roughly $3 billion from charging their customers for using another institution’s ATM. The banking industry says the higher fees on their machines are necessary because of the expense of maintaining and operating their ATM networks is rising. Banks spend on average $12,000 to $15,000 a year to maintain each ATM, however small banks and credit unions haven’t started to raise their ATM fees.
Chase is testing the higher fees in two states. In Texas, non-customers are being charged $4. In Illinois, they’re being charged $5. The bank did not say when it would roll out the higher fee nationwide. Chase customers will not be affected. They’re still paying $2 to use an out-of-network ATM.
TD Bank last week dropped its policy of letting its customers use other ATMs for free. The bank is now charging the industry standard of $2 to most of its customers. PNC recently announced that it will later this year give up its five-year-old program of reimbursing some customers for charges incurred when using a non-PNC ATM.
No Fee ATM Banks
Some banks are part of the Allpoint ATM Network, which is a large network of ATMs which don’t charge member banks fees.
If fees are a concern visit Michigan State Farm® Agent who can direct you to State Farm Bank a premier online bank, State Farm Bank® customers rely on ATMs as one avenue to transact business. With that in mind, we offer our ATM surcharge rebate policy, and have no plans to change that policy.
With a State Farm Bank Checking or Money Market product and a direct deposit via an ACH credit during the statement cycle, customers receive unlimited ATM surcharge rebates. If there has not been a direct deposit via an ACH credit during the statement cycle, the Bank will rebate up to a total of $10 in ATM surcharges per account per banking statement cycle.
For more information to see what is going on with insurance and banks in Michigan visit our site Michigan Insurance site.