Spontaneous Trips To the ATM Cost More
According to a recent article from CNN Money stopping at the ATM may be costing you more than you realize. According to Bankrate the average fee for using an out-of-network ATM rose to $4.57. This is the tenth straight year of increases as consumers move to using debit and credit cards over making a stop at an ATM.
The driving factor of ATM price increases is due to consumers using them less and less. The cost of building out and maintaining networks of ATMs is spread out over far fewer transactions each year, contributing to the rising costs. As the bank network of ATMs begins to contract for profitability’s sake, a perfect opportunity arises for small business to add a low maintenance income generator to their location.
While there is a certain convenience factor involved it won’t take long for those fees to affect your bank account. With the average fee sitting at $4.57, one $50 out of network ATM transaction will cost 9% in fees. If visiting an out of network ATM is something a consumer routinely does they will notice those fees quickly adding up.
The two parts that make up ATM fees are
- Out of network fee average $2.90 up from $2.88
- Issuing bank out of network fee $1.67 or almost 2%
Using a debit card to make a purchase allows a consumer in most cases to get cash back, while many banks offer an ATM locator within their mobile application.
Here are some average ATM fees from around the country:
San Francisco $3.90
Los Angeles $4.28
Some banks may offer accounts that do not charge for out of network ATM fees, so it is always good to ask what your bank’s policy is.
If you’re a business and you’d like to capitalize on the shrinking ATM footprint, Card Systems can help by installing an ATM at your location, making access to cash quick and easy for your customers. ATMs are great low maintenance revenue generators for bars, night clubs, and busy restaurants. Call or contact us today for more information about an ATM.