The $3 ATM Surcharge Fee

On Sept 20, I went to the Bank Of America branch at the corner of Broadway and 53rd Street, and when I put in my local bank branch card, it asked me to pay a $3.00 ATM surcharge.

A few weeks ago, it was $2.00.

Thank you Bank of America.

Then I went searching on the web, it seems Bank of America was quietly rolling out the increase during the months of July and August without any noticeable announcement.

$3.00 is the highest fee ever imposed nationwide by a major bank. Unfortunately to millions of consumers, BofA has the largest ATM network in the USA.

It is only a matter of time before the other banks decide to raise their ATM fees. Currently, Citi, Chase, Wachovia, and Wells Fargo have no immediate plans to raise ATM fees.

So what is BofA's excuse for this?

Bank of America spokeswoman Betty Riess:
The higher fees help offset the "significant investment" the bank has made to upgrade and expand its cash machines. The bank decided to charge non-customers a $3 fee at 10,700 ATMs — nearly two-thirds of its network — in bank branches and supermarkets as a way to "reduce wait time for our own customers," Riess says.

At shopping malls, convenience stores and airports; the withdrawal fee at those machines remains $2.

Here's Bankrate.com Fall 2006 survey of ATM fees

Of course, your own bank charges you a separate fee for using BofA's ATM and any other bank. So your cash transaction would cost you at least $4.00 to $5.50.

USPIRG has a talking points memo dealing with the BofA increase.