ATM surcharges: Their effect on competition and efficiency

A commentary states that as ATM usage has burgeoned, banks have chosen vastly different pricing strategies for ATM services. Some banks are avoiding the threat of adverse publicity by selling advertising on their ATMs instead of surcharging customers. The objection to surcharges is that they detract...

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Bibliographic Details
Published inJournal of retail banking services : JRBS Vol. 18; no. 3; p. 57
Main Author Horvitz, Paul M
Format Journal Article
LanguageEnglish
Published New York Thomson Media 01.10.1996
Subjects
Automated teller machines
Fees & charges
Market strategy
Regulation
Retail banking
Surcharges
United States > US
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Summary:A commentary states that as ATM usage has burgeoned, banks have chosen vastly different pricing strategies for ATM services. Some banks are avoiding the threat of adverse publicity by selling advertising on their ATMs instead of surcharging customers. The objection to surcharges is that they detract from the simplicity, certainty, and convenience of the ATM as a means of obtaining cash. Besides the question of whether surcharges will lead to an increase or decrease in the total number of ATM transactions, there is the issue of consumer protection, stressed by those members of Congress who have proposed regulation to this matter. If high surcharges become prevalent, there may be an emergence of a new competitive strategy - attempting to gain customers by offering superior convenience and lower cost for access to ATMs.
ISSN:0195-2064