4 ms·

But, there's always been a fee for using the ATM of a bank you're not a member of. Feels like FUD to me.

pavel_lishin 16y ago
Sure, but $5 is more than double the standard fee in my experience. I think the significance lies not in "oh no, it costs more now!" but in the fact that banks are beginning to add more and more fees to make a profit - doesn't this suggest they're hurting elsewhere, and are turning to what could be considered some pretty desperate measures to come up with money?
- jbooth 16y ago
  The article suggests that they're pissed off that congress is considering limiting their overage fees (which IMO are purely predatory/opportunistic, no way an overage actually costs the bank 150 bucks, I could be wrong though). So they're retaliating by saying "yeah, well we're just gonna stick it to you another way, then". Emotionally-driven economics at work. I mean, it's not like they could actually make the system more efficient. Less people to manage, harder to justify your big paycheck for managing a simple and efficient system.
- PakG1 16y ago
  Not necessarily, a corporation always is looking for ways to grow its profits, preferably through easier methods, rather than more difficult methods. That doesn't mean they're necessarily hurting in other revenue streams. I met someone who once worked for Proctor & Gamble in marketing. He told a story of how they had a goal to increase a certain fabric softener's revenue by a million dollars in 1 year for a certain market. They looked at the stats and discovered that a certain percentage of customers always came back to purchase due to brand loyalty. Then they did some more research and redesigned the fabric softener bottle's cap and spout. You normally pour the fabric softener into the cap, and then into the laundry machine, right? So they made 2 changes. First, they made the cap a touch wider and the line a bit higher. This way, customers thought they strangely weren't putting in as much fabric softener as normal, so they would pour in more. Second, they made the spout easy to overdose fabric softener accidentally. In market tests, customer test groups said that the spout made it so much easier to pour. So they released the product and marketed it as having the new easy-pour spout. It guaranteed faster usage, and therefore faster repurchase rates from loyal customers. Bam. They made their numbers and increased the stock price that little bit more.
  - pavel_lishin 16y ago
    Raising the ATM fees seems like a terrible way to raise money, from a marketing perspective. The softener example made customers happier with their selected brand; this seems like it would anger customers. As another anecdote, last night I almost didn't withdraw cash because the fee was $2, instead of $1.50. If it were $5, I definitely would have walked the two and a half blocks to my "home" ATM.
iaskwhy 16y ago
Coming from a small European country, it's one of those things that you think it's really weird about countries like United States. Here you can withdraw money without paying anything from any ATM. I never even saw a ATM asking for a fee. When I went to NYC it wasn't easy to find ATMs without fees (and then there was the problem of my card being part of the Maestro network which isn't available everywhere).
- adnam 16y ago
  It is because <small European country> only has one bank? ;-) In Spain these charges are quite common too, but are grouped into competing ATM networks: servired, telebanco and 4B being the main ones.
  - iaskwhy 16y ago
    Not really, I guess it really varies. I'm from the other side of the border, Portugal, the banks are pretty much the same as in Spain (well, they are almost all Spanish by now).
- radu_floricica 16y ago
  In my small European country (Romania) fees at other bank's ATMs came with the ATMs 20 years ago. I guess it varies.
- colanderman 16y ago
  On the other hand, the few times I've been to the EU, it wasn't easy to find public restrooms without fees :) In the US, I've never seen a public restroom that charged. (Actually I saw one, at a tourist destination in Martha's Vineyard, that had a suggested donation. I was flabbergasted.)
  - iaskwhy 16y ago
    That's very true! The trick is to enter a cafe and ask for a bottle of water while taking the chance to ask "oh, by the way, where's the restroom?"

Sure, but $5 is more than double the standard fee in my experience. I think the significance lies not in "oh no, it costs more now!" but in the fact that banks are beginning to add more and more fees to make a profit - doesn't this suggest they're hurting elsewhere, and are turning to what could be considered some pretty desperate measures to come up with money?

jbooth 16y ago
The article suggests that they're pissed off that congress is considering limiting their overage fees (which IMO are purely predatory/opportunistic, no way an overage actually costs the bank 150 bucks, I could be wrong though). So they're retaliating by saying "yeah, well we're just gonna stick it to you another way, then". Emotionally-driven economics at work. I mean, it's not like they could actually make the system more efficient. Less people to manage, harder to justify your big paycheck for managing a simple and efficient system.
PakG1 16y ago
Not necessarily, a corporation always is looking for ways to grow its profits, preferably through easier methods, rather than more difficult methods. That doesn't mean they're necessarily hurting in other revenue streams. I met someone who once worked for Proctor & Gamble in marketing. He told a story of how they had a goal to increase a certain fabric softener's revenue by a million dollars in 1 year for a certain market. They looked at the stats and discovered that a certain percentage of customers always came back to purchase due to brand loyalty. Then they did some more research and redesigned the fabric softener bottle's cap and spout. You normally pour the fabric softener into the cap, and then into the laundry machine, right? So they made 2 changes. First, they made the cap a touch wider and the line a bit higher. This way, customers thought they strangely weren't putting in as much fabric softener as normal, so they would pour in more. Second, they made the spout easy to overdose fabric softener accidentally. In market tests, customer test groups said that the spout made it so much easier to pour. So they released the product and marketed it as having the new easy-pour spout. It guaranteed faster usage, and therefore faster repurchase rates from loyal customers. Bam. They made their numbers and increased the stock price that little bit more.
- pavel_lishin 16y ago
  Raising the ATM fees seems like a terrible way to raise money, from a marketing perspective. The softener example made customers happier with their selected brand; this seems like it would anger customers. As another anecdote, last night I almost didn't withdraw cash because the fee was $2, instead of $1.50. If it were $5, I definitely would have walked the two and a half blocks to my "home" ATM.

iaskwhy 16y ago

Coming from a small European country, it's one of those things that you think it's really weird about countries like United States. Here you can withdraw money without paying anything from any ATM. I never even saw a ATM asking for a fee. When I went to NYC it wasn't easy to find ATMs without fees (and then there was the problem of my card being part of the Maestro network which isn't available everywhere).

adnam 16y ago
It is because <small European country> only has one bank? ;-) In Spain these charges are quite common too, but are grouped into competing ATM networks: servired, telebanco and 4B being the main ones.
- iaskwhy 16y ago
  Not really, I guess it really varies. I'm from the other side of the border, Portugal, the banks are pretty much the same as in Spain (well, they are almost all Spanish by now).
radu_floricica 16y ago
In my small European country (Romania) fees at other bank's ATMs came with the ATMs 20 years ago. I guess it varies.
colanderman 16y ago
On the other hand, the few times I've been to the EU, it wasn't easy to find public restrooms without fees :) In the US, I've never seen a public restroom that charged. (Actually I saw one, at a tourist destination in Martha's Vineyard, that had a suggested donation. I was flabbergasted.)
- iaskwhy 16y ago
  That's very true! The trick is to enter a cafe and ask for a bottle of water while taking the chance to ask "oh, by the way, where's the restroom?"