Comments, questions, news submissions, and requests to be added or removed from the list can be sent to Stacy Mitchell . Surcharges are the fees banks charge noncustomers for use of their ATMs. Surcharges are deducted directly from the consumer's account at the time of the transaction. Surcharging first began in 1996.
Surcharges are anti-competitive and threaten the viability of small banks and credit unions.
In most regions, a handful of large banks own the majority of ATMs. For example, just two banks own more than 80 percent of the ATMs in San Francisco. By imposing surcharges, these banks create an incentive for customers of small banks and credit unions to move their account to one of the dominant banks in order to avoid the surcharge. The result is that small financial institutions are losing market share, despite the fact that they offer consumers a better deal. For several years running, the Federal Reserve has concluded that small banks and credit unions offer better interest rates and lower fees than big banks.