Saturday, October 29, 2005

Death of a Thousand Cuts

Did you know that if you use an ATM and request money, but you are over your limit, your bank will not dispense the money, and they may charge you a "Denial Fee?"

In the article I linked to, the banks argue that there is a cost of operating the ATMs that they have to pass on to the customer. What they are hoping we forget is that when put those ATMs in, they told us it was cheaper than a teller. My bank, for instance, has a nice, large lobby, complete with seven teller windows. Only two are used. Thanks, ATM!

This denial fee is on top of the ATM usage fee, any off network charges, and any charges the other bank wants to stick us with. And don't forget your monthly service charge, if you have one. Slowly but surely, you and I could pay hundreds of dollars a year to use an ATM, and the banks make billions a year.

That's why I won't use an ATM.


Blogger Nervous Rodent said...

Here's trick to avoid fees. When you need cash, go to a grocery store and buy a candy bar (or whatever you happen to need). Pay with your ATM card, and get cash back. Instead of paying $2-$5 in fees, you pay fifty cents and get a free candy bar.

3:09 PM  
Blogger apples said...

I agree with the rodent.

I rarely need cash and when I do I wouldn't have a clue where to find a ATM. I always have to go to the grocery store anyway so why not do both at the same time?

8:26 PM  

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