In the literature, the question
of ATM fees is generally considered to be a regulatory problem: should they
be banned? In the real world, Bank of America has raised
its ATM fee to $3. Which is the kind of thing banks can do when they get
to be the size of Bank of America: it essentially bullies people into opening
an account with you, rather than attracting them with high interest rates on
deposits, low interest rates on loans, or good customer service. The ABA comes
right out and says as much:
Transaction fees, especially at large banks with ATMs in convenient locations,
should compel users to open accounts at those banks to avoid fees, said American
Bankers Association spokesman John Hall.
I wonder how many bank accounts John Hall has.
Update: Andrew Leonard has a very
enjoyable rant on this subject.