ATM Surcharge Factsheet

What is a surcharge?
Surcharges are fees charged to consumers withdrawing cash from ATMs, and are used to cover the cost of providing and maintaining ATMs. Financial institutions generally only apply surcharges to non-customers who withdraw money from their ATMs.Surcharge Timeline

1996 – Surcharge fees become common

1996 – The Electronic Fund Transfer Fees Act, which would prohibit ATM surcharges, is introduced in the U.S. House of Representatives. It does not pass.

1999-2000 – Several cities, including San Francisco and New York, take steps to ban surcharges, citing the Electronic Funds Transfer Act of 1978, which grants states the right to enact their own EFT regulations.

2000 – Several national banks file injunctions against cities banning surcharges, citing a 1996 amendment to the National Bank Act, which allows national financial institutions to operate under national laws and not state laws.

2002 – The lawsuits reach the Eighth and Ninth Circuit Courts of Appeals. The Eighth Circuit Court agrees with an earlier ruling, which stated that Iowa had little authority to regulate ATMs operated by national financial institutions. The Ninth Circuit Court upholds a similar ruling.

2002-03 – The Supreme Court declines to hear either appeal, effectively ending the legal battle over surcharges.

Surcharges By The Numbers
4.2 Billion – Dollars spent on surcharges by U.S. consumers in 2006

4.4 Billion – Estimated dollars spent on surcharges by U.S. consumers in 2007

$1.78 – Average cost a surcharge in 2007

4 – Number of consecutive years in which the average national surcharge has increased

$2 – Cost of the most common surcharge, though 22 national financial institutions charge more

99 – Percentage of banks that assess ATM surcharges

Source: Bankrate.com