CONSUMER WATCH : ATM Tuneup

Automated teller machines have been a boon to consumer convenience, no doubt about that. But ATMs have been an equal boon for U.S. banks, saving them $2.34 billion a year that otherwise would be paid to human tellers, in addition to bringing in $2.9 billion a year in transaction fees, a study by the Consumer Federation of America has found.

The fees are incurred by customers when they use an ATM that’s not part of the banking chain in which they have an account; the charges typically run from $1.50 to $3 per transaction and cost the average cardholder a hefty $37 a year.

At the very least the fees ought to be disclosed on the ATM screen at the time of the transaction, not buried in a monthly statement. Bankers respond that to do so would be inconvenient, though not technologically impossible.

We believe that if consumers were reminded each time, banks might feel a little competitive heat to lower fees. And isn’t that what the magic of the marketplace is about?