STRATEGIC PARTNERS
It will be "customers only" at Bank of America and Wells Fargo ATMs in Santa Monica, following that city's enaction of a ban on surcharges at bank-owned machines.by Ann All, editor
November 18, 1999
Bank of America and Wells Fargo will offer ATM services only to their own customers at machines in Santa Monica beginning on Nov. 11, the same day a city ordinance banning surcharges at bank-owned machines takes effect. The Santa Monica City Council on Oct. 12 voted to prohibit banks from charging a convenience fee to non-customers using their ATMs, the first such ban to be enacted by a local government. The restrictions will affect non-customers at 21 Bank of America and 12 Wells Fargo machines. If a non-customer inserts a card into the ATM, a screen will pop up explaining that it may be used only by bank customers. According to Wells Fargo spokeswoman Kathy Shilkret, signage also will direct users of their ATMs to the nearest Wells Fargo machine outside of Santa Monica. Shilkret said that only about 10 percent of Wells Fargo ATM transactions are conducted by non-customers in Santa Monica. "At the end of the day, the people who really concern us are our customers -- and they're not going to see any difference at the ATM," she said. "No business should be expected to provide free service to non customers," said Gene Taylor, president of Bank of America's Western Region. "Bank of America built the nation's largest ATM network for people who choose to do business with us, and we think it's reasonable to charge non-customers for the optional convenience of this service." The banks have not yet decided what action, if any, to take in San Francisco, where voters approved a similar ban last week. Scheduled to take effect in December, it was the nation's first anti-surcharge referendum. A day after the measure passed, Bank of America, Wells Fargo and the California Bankers Association sued to block it. U.S. District Court Judge Vaughn Walker set a hearing for Nov. 15, adding that it appeared the case revolved around "the single legal issue'' of how the National Bank Act relates to local ordinances. "We're not moving forward in San Francisco at this time because we do feel Judge Walker will grant an injunction," Shilkret said. In a written release, Bank of America indicated it would discontinue ATM service to non-customers in San Francisco if the court does not grant an injunction before that city's ordinance takes effect. Jon Golinger of the California Public Interest Research Group, which spearheaded both anti-surcharge initiatives, called the banks' decision to restrict use of their ATMs "a political maneuver." He said, "I think it's designed to scare off other cities from following Santa Monica's and San Francisco's lead, and it's designed to scare off the judge considering this issue on Monday." Golinger added that regional networks such as Star will have to decide whether the banks' action violates network rules concerning universal access to ATMs.
