East & Partners

Chase tests US$5 ATM charge

(16 March 2010 – USA) JP Morgan Chase has begun testing a $5 fee for non-customers using its cash machines in the United States.The bank, which has around 3600 ATMs in the states of Texas and Illinois, is trialling a US$4 charge in Texas and a US$5 charge in Illinois.

With many US banks also charging customers for using cash machines outside of their network, withdrawals could cost some users more than US$8.

With the Dodd-Frank law cutting off some revenue streams, banks are looking to up the amount they make from ATM fees, estimated to be over US$7 billion (A$7.03 bilion)last year, according to the Wall Street Journal.

HSBC has begun charging non-customers US$3 a withdrawal while TD Bank has introduced a US$2 fee for customers using other machines.

JPMorgan has issued a statement saying banks ‘created a network of 9,100 ATMs for the convenience and free use by our customers. It is appropriate to charge non-customers a fee.’

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