As debit cards are used more often, people carry less cash, leading to ATM fee hikes.
A decade ago you may have paid cash for a cup of coffee or a pack of gum. Today more and more people are using their debit cards even for small transactions.
The trend is resulting in increasing ATM fees, according to a USA Today report. Since banks must continue to maintain the less and less used money machines, they’re charging more and more for each withdrawal.
Of all debit card transactions today, 54 percent are for less than $20, according to a spokesman for PULSE, one of the country’s largest ATM and debit networks. The survey of 70 financial institutions on their ATM policies was conducted for pulse by Bankrate.com.
The survey found that the national average fee for an out-of-network ATM withdrawal was $4.52, but some cities’ fees were in a significantly higher range. Atlanta topped the nation with a typical fee of $5.15, while Milwaukee, Miami, Phoenix and New York all came in with fees above $4.75.
San Francisco was among the lowest for ATM fees, with a typical out-of-network withdrawal fee of $3.85.
With fewer users, ATM fees have increased by 21 percent in the past five years. The ease of “cash back” from transactions with many retailers is an additional factor in the decline of ATMs. In another survey, nearly 25 percent of respondents said they even look for opportunities to make small purchases and receive cash back in order to avoid using an ATM.
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