Banks’ ATM Surcharges Hit New Record, As Do NSF Fees

The average ATM surcharge assessed by banks has risen 4 cents in the past six months, to $1.64, but a drop in ATM foreign fees means banks will collect $4.2 billion in total ATM charges this year, down slightly from the $4.3 billion they took in in 2005. That's according to the latest survey of checking-account fees from Bankrate Inc. The researcher also found that banks are charging $27.40 on average in so-called bounced-check fees, up from $27.04 in the spring and 50 cents from a year ago. These fees, now also at record highs, hit not only check writers but also users of signature-based debit cards whose accounts have insufficient funds, adding to banks' revenues on the plastic. ATM surcharges, which banks levy on consumers whose debit cards are issued by other banks, hit a new high this fall, rising fully a dime from a year ago, says Bankrate, which surveys banking charges in the spring and fall of each year. Since spring, 22 banks have hiked their surcharges, while six have lowered them. Overall, however, 98% of ATM-owning financial institutions now levy surcharge fees, the same percentage that offers account access on the Internet, the survey indicates. Running counter to this trend, however, is a drop in the so-called average foreign fee, the charge banks assess to customers who use another bank's ATMs. This charge, at $1.25, fell from $1.29 in the spring, and has now dipped in two straight surveys. It now stands at its lowest level in more than four years. While 22 banks increased their foreign fees, compared with 19 that cut them, some six banks cut or eliminated the fee for a particular account, according to the survey. Still, in five of these six cases, the linked account came with monthly service fees of $10 or more, offsetting the value of the reduced foreign fees to consumers. For its latest survey, North Palm Beach, Fla.-based Bankrate canvassed 248 institutions offering checking accounts, covering the largest banks and thrifts in each of 25 major markets.