News

NYPIRG releases annual survey on ATM, other financial fees

April 14, 2004

NEW YORK - In its latest report on consumer fees for financial services, the New York Public Interest Research Group(NYPIRG) found that some 94 percent of the New York banks that it surveyed charge nonaccount holders a user fee at their ATMs, with an average of $1.55.

This is a slight drop from last year, mainly because Washington Mutual eliminated its ATM surcharges last fall. Some 92 percent of banks also charge their own customers a foreign ATM fee for using another institution's machine, the average being $1.28, the survey found.

Other results of the survey:

• All private ATMs levy user fees, with an average of $1.55.
• Some 89 percent of banks surveyed assess a debit card fee for PIN-based transactions, with an average charge of 70 cents. There are no fees for signature-based purchases with a debit card.
• Prepaid cards, also called stored value cards, can carry the steepest fees, including an average activation charge of $50, annual fee of $70, point-of-sale transaction fees of 86 cents, ATM transaction fees of $1.64 and fees for adding new money of $1.44.

"Because the fees are $1 here, $1.50 there ... many consumers do not realize just how quickly those dollars can become hundreds of dollars," said Aisha Fraites, NYPIRG project coordinator at New York College of Technology.

John Hall, spokesman for the American Bankers Association, said customers can avoid fees. For instance, many banks waive fees if consumers sign up for certain accounts, directly deposit their paychecks or maintain a minimum balance. Also, people can avoid ATM fees by using their own banks' machines.

"The customer is in the driver's seat regarding pricing," Hall said. "Banks have moved from fixed-fee pricing to a la carte pricing, which lets consumer pick and choose the products and pricing that best suits their needs."