Recently, several cities have passed resolutions to ban the ATM surcharge. This February, the city of Woodbridge, NJ joined Santa Monica and San Francisco in banning surcharges. Local Rebellions Against Unfair Surcharge Spread. The report summarizes the status of surcharge legislation in states and cities around the nation. In November, a US District Court judge blocked implementation of the bans, which are on appeal to the Ninth Circuit Court of Appeals.
Local bans are under consideration in the councils of New York City and Chicago.
In February, Iowa petitioned the U.S. Supreme Court to review a decision overturning its broad ATM regulations over state banks, which had included an administrative ban on surcharging. The report examines the legal case for state action and details how the 1978 Electronic Funds Transfer Act, which governs ATMs, explicitly allows states and cities to regulate ATM fees. In their lawsuits against surcharge bans, banks and bank regulators argue that the 1863 National Bank Act prohibits local action. The report also describes the anti-competitive nature of ATM surcharging, which has allowed banks to continue to raise fees. It points out that the bulk of the benefits go to larger banks.