Volume
1 Issue 3- May 2001
ATM fees
"Bank customers feel that banks are using the ATM fees as a way of milking customer accounts."
Little more than a week after state Rep. William Parker (D-Birmingham) introduced a bill on April 3, 2001 aimed at capping automated teller machine fees in Alabama at $1 per transaction, one of the state's largest banks announced that it now offers totally free ATM usage. Compass Bank announced on April 11 that it offers "customers totally free ATM use, both at Compass Bank locations and at rival banks' ATMs." When Rep. Parker introduced his bill, he cited a recent survey by bankrate.com, a Florida research firm, that found consumers pay an average of $3 per transaction if they use an ATM owned by another bank, with the money split between the banks. Parker's bill would prohibit a bank from charging a non-customer using one of its ATM machines more than .50 cents. It would also cap at .50 cents the charge a bank imposes on its own customer using any other banks' ATM. The combined fee between banks would not exceed $1.
"I have received a tidal wave of support from bank customers and voters since I introduced my bill," said Parker. "Bank customers feel that banks are using the ATM fees as a way of milking customer accounts. We had to do something."
Birmingham-based Alamerica Bank initiated the industry practice last year of offering its customers totally free ATM usage. Compass Bank followed Alamerica's lead this year. Board chairman and founder, Donald V. Watkins, said that Alamerica gives ATM cards to bank customers and reimburses them for ATM charges they incur up to 10 times per month. Watkins expects other banks in the state to follow Alamerica Bank and Compass Banks' practice of totally free ATM usage.
Related Links:
Birmingham News - Bankers protest another ATM bill: Measure sidesteps banking committee
Related Links:
Birmingham News - Consumers applaud lawmaker's bid to limit fees on ATM transactions
Related Links:
Birmingham News - Bill proposes fee cap on ATM transactions
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