In response to David Sorkin’s Jan. 23 letter (“Surcharge epidemic”) about ATM surcharges being anachronistic and monopolistic: The problem is not with the banks that charge the fees or government that has not restricted the fees, but with consumers.
ATMs cost banks money to install and maintain. I pay a fee to my bank for my checking account, and in return I can use their ATMs for free. I don’t pay anything to other banks, so why should I be able to use their ATMs for free? That’s capitalism–they provide a service, and I can choose to pay for that service if I want to use it. And if I think the price is unfair, then I don’t have to use it. I can find an ATM with a lower fee.
This is the essence of the free-market economy. You vote with your wallet. If people stop using the overpriced ATMs, the banks will reduce the charges. That’s the law of supply and demand. And it is not very difficult to avoid paying ATM surcharges. All it takes is a little planning and some common sense.
– First, choose a bank that has ATMs that are convenient for you, either near home or work, and make sure there is no fee to use that bank’s ATMs.
– Second, take out larger amounts so it’s less likely that you will need cash when you cannot get to one of your bank’s ATMs. Instead of withdrawing $20 three times a week, take out $60 once a week.
– Third, plan ahead. If you are going somewhere where you know you will need cash, make sure to stop at the ATM before you go. Don’t wait until you’re stuck someplace where you can’t get to one of your bank’s ATMs.
– Finally, if you’re out of cash and cannot get to your bank’s ATM, use a credit or debit card if possible. Many banks allow you to use your ATM card as a debit card with the Visa or Master Card logo, so just use that for the purchase instead of paying an ATM fee. If people would just think a little, ATM surcharges would not even be an issue, because nobody would be paying them.
