News

Illinois House bill seeks $1 cap for ATM fees

April 17, 2017

Illinois State Rep. Arthur Turner, D-Chicago, has introduced a bill in the state assembly limiting ATM charges to $1. The fee cap would apply to banks and independent deployers, according to a WAND 17 report.

"In concept, what we are trying to do is just limit ATM fees and keep them from skyrocketing," Turner said in the report. He said that out-of-network fees "can reach as high as $7 to $10 just for withdrawing from your bank."

An annual fee survey by Bankrate.com found that total ATM fees for an out of network transaction averaged $4.57 in 2016, an increase of just 0.7 percent from 2015. According to the Public Interest Research Group, ATM fees in the United States have not averaged less than $1.01 for the past 21 years.

Banks and retailers are protesting the proposed imposition of fee caps, saying that the market and not the legislature should decide rates . Both have warned that, if passed, the bill's effect will be a contraction in the number of ATM terminals, resulting in reduced consumer access.

Turner has said he is willing to work with the opposition to amend the bill, which has passed out of committee and is up for consideration by the full Illinois House of Representatives.