ATM Surcharge, Bounced Check Charges Soar

poundwise · #1 (**permalink**) 10-30-2006, 05:34 AM

WEST PALM BEACH, Fla. -- It's costing you more these days if you use an ATM at a bank where you don't have an account.

The latest Bankrate.com Checking Account Pricing Study finds the fee charged to non-accountholders for using a bank's ATM hit a record for the third consecutive survey. It now stands at $1.64 -- up four cents from last spring and a dime from a year ago. The good news is that fewer banks are charging their own customers for using another bank's ATM.

Meanwhile, if you bounce a check, the average fee charged by financial institutions is at a record high $27.40. That's a dime more than you'd have paid this spring. Experts said signing up for overdraft protection, ideally linked to a savings account, is a low-cost way to avoid bouncing checks.

poundwise · #2 (**permalink**) 10-30-2006, 05:35 AM

Of course, these two fees are easily avoided, however, I thought it was a relevant post for this section of the forum. Forewarned is forearmed.

PRICEPLUS · #3 (**permalink**) 10-30-2006, 07:38 AM

They look for ways to get your money coming and going!

disneysteve · #4 (**permalink**) 10-30-2006, 09:52 AM

Quote:

Originally Posted by PRICEPLUS

They look for ways to get your money coming and going!

I have mixed feelings about this. Yes, the fees have gotten ridiculous, but for the most part, the fees are only charged in response to customers doing things they shouldn't do - bouncing checks, exceeding the limit on their CC, paying bills late, etc. Its tough to complain about a fee that is totally avoidable.

ATM fees are more of a problem, though. It costs the banks next to nothing to process those transactions, far less than they charge the customer. Again, you can avoid the fee by using your own bank only, but it would be nice if the foreign ATM fee was more reasonable. There are times when you just can't get to your own bank, like when you are out of town, but then I guess the fee is what you are paying for the convenience of being able to access your money anywhere and any time.

PRICEPLUS · #5 (**permalink**) 10-30-2006, 10:26 AM

disneysteve, sometimes the address changes for the CC or the grace period changes. Sometimes people lose jobs or have accidents that leave them disabled. Sometimes middle class people have a world of hurt dumped on them and then the buzzards swarm! The people who are least able to pay get hurt the worst!

I don't think it is as simple as people being irresponsible as much as it is a great many times trying to survive! ATMs were to cut costs and help the banks give us better service and products. I think the CEOs got money but we sure did not get imoproved service or prices!

disneysteve · #6 (**permalink**) 10-30-2006, 01:03 PM

Quote:

Originally Posted by PRICEPLUS

sometimes the address changes for the CC or the grace period changes. Sometimes people lose jobs or have accidents that leave them disabled. Sometimes middle class people have a world of hurt dumped on them and then the buzzards swarm! The people who are least able to pay get hurt the worst!

I understand and agree that sometimes bad things happen and cause people to miss a payment, and I absolutely agree that fees like this have the hardest impact on the poorest people.

But at the same time, a lot of this does come back to personal responsibility. It is your responsiblity (generic "you", not you personally PRICEPLUS) to keep track of how much money is in your checking account and not to write checks for more money than you have no matter what your situation may be. If you don't have any money, stop writing checks.

As for ATMs, lots of people go to the machine several times a week, even every day, then complain about the fees. Why not just go once a week and take out enough for the week and limit the fees you have to pay? Or use your bank's ATM or actually walk into the bank and pay nothing to withdraw the money?

As for the CC changing the address, I suppose that happens, but do they change the address between the time they mail the statement and the time the payment is due? That would be pretty sleazy to mail a statement with a payment coupon and then not honor it when the customer mailed it in a week later. I'd certainly have a problem with them charging a fee for that when it was their mistake.

MonkeyMama · #7 (**permalink**) 10-30-2006, 01:52 PM

I have never lived in the same city as my credit union and I have never paid an ATM Fee. Score 1 for credit unions.

disneysteve · #8 (**permalink**) 10-30-2006, 03:58 PM

Quote:

Originally Posted by MonkeyMama

I have never lived in the same city as my credit union and I have never paid an ATM Fee. Score 1 for credit unions.

I never pay an ATM fee either. I only use ATMs from my own bank. If I am going out of town, I make sure I have cash before I leave. I can also use my credit card or, if I choose, use my bank debit card (which I've never done but I've got that option).

greedy4chips · #9 (**permalink**) 10-30-2006, 06:47 PM

I look at fees as a user fee. If you don't want to pay a fee then don't use the service. It is like the toll roads and gas taxes.

People need to learn how to manage their accounts to avoid fees...it is that simple.

#10 (**permalink**) 10-31-2006, 05:43 AM

when on the road and in need, I just hit a wal-mart.

find the cheapest thing at the checkout and get whatever cash back I need (I would imagine you can do this at a target as well), it's always cheaper than the most reasonable ATM fee.

but that seldom happens because I, like the others here, get the money before I leave.

much of my planning habits come from using a bank with only 2 branches across the entire area I live and move around in so it's "out of my way" just for local needs.