News

Major banks to waive ATM fees for California EBT cardholders

February 19, 2019

A coalition of California community groups and social service providers has announced that Bank of America, JPMorgan Chase, and Wells Fargo will now provide free ATM access nationwide to low-income California families who receive benefits via state-issued Electronic Benefits Transfer cards.

According to a press release, BofA, Chase and Wells have joined dozens of smaller banks and credit unions that provide ATM access without surcharges in California. Previously, Citibank was the only top national bank to waive fees across the country.

Studies by the California Reinvestment Coalition show that California EBT card users have been paying more than $20 million per year on fees to access ATMs. 

The California Department of Social Services in 2016 bid out a new contract to administer the state’s EBT program. The winner, FIS, agreed to secure free access to two major ATM networks. 

The new contract also removed fees that were charged by the previous administrator for ATM withdrawals beyond four per month, making California the first state in the nation not to pass through the cost of EBT administration to families for accessing their benefits.

“Ultimately, it is the right thing to do to make sure families get the full use of every dime they need rather than allowing taxpayer funds to be siphoned off to pay ATM fees,” Paulina Gonzalez-Brito, executive director of the California Reinvestment Coalition, said in the release. “We hope other banks step up to follow the lead of these banks and that California’s leaders continue to advance policies that ensure access to affordable, non-predatory financial services for all Californians regardless of income.”