ATM charges $3 to give you $1

A crop of new machines that dispense small bills and even coins could end up costing customers much more in fees.

By Aimee Picchi Jan 18, 2013 1:59PM

Image: bank ATM (Image Source/Corbis/Corbis)A crop of small-bill ATMs is sprouting up across the U.S., but consumers could end up spending more in fees than they withdraw. 


JPMorgan Chase (JPM) has installed as many as 400 ATMs that dispense bills in denominations from $1 to $100, while PNC (PNC) has upgraded more than half of its 7,200 ATMs to dispense $1 and $5 bills, reports CNN


While the ATMs are free for customers of the banks, consumers who use an out-of-network ATM will face the same fees as someone who takes out larger amounts: $3 for out-of-network customers, plus potentially an additional fee of about $1.60 from the customer's own bank. 


That might hit some of the banks' customers hard, especially those most likely to use the new feature: consumers with small account balances.


The banks want to appeal to customers with low-income account balances, or those who might want to withdraw less than $20 or an amount between $20 to $40, Bankrate.com senior financial analyst Greg McBride told CNN. 


"Particularly in difficult financial times when peoples' account balances have been lower, not having to withdraw more money than you really need is helpful," McBride said.


Some of Chase's new machines will soon dispense coins. The bank plans to pilot that service, and then expand it across the country. 


For the bank, the benefit is increased efficiency and less need for additional staffing, Chase's head of branch innovation told CNN. He described the machines as "next-generation ATMs or new teller platforms,' which include capabilities such as paying credit card bills. 


While the ATMs might offer more flexibility, consumers might want to make sure they're sticking with their own bank's ATMs when taking out a few dollars for lunch -- otherwise, that $5 sandwich could end up costing upwards of $8. 


More on Money Now

Tags: Banks
77Comments
Jan 18, 2013 2:57PM
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JP morgan Chase is as low and scummy as Bank of America
Jan 18, 2013 2:45PM
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Typical Bank move......join a CREDIT UNION...Banks suck ****.
Jan 18, 2013 2:49PM
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Well this is JP Morgan Chase bank, so why is anyone surprised? I think their CEO's motto is "Screw them out of every penny we can, so I can have my Parachute Club retirement."

Insert "Bank of America" in this article and there would still be no surprise.
Jan 18, 2013 3:26PM
Jan 18, 2013 2:43PM
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who needs $1 or $5 from an atm??? The same people that complain that the grocery store is closed on christmas day or have 20 inch rims on their car but can't afford the 100k maintenance? 
Jan 18, 2013 3:11PM
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No sympathy at all, any moron who would pull one dollar out of an ATM is either a bum or stupid.
Jan 18, 2013 3:48PM
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Dahhh... You think that withdrawing $10 and paying a service fee of $3 to $4.60 makes sense?  I bet you that most of those people that do that sort of thing don't give it a second thought and it's not cause they got a lot of money to burn.  The typical American is so mathematically challenged that they can't even balance their check book never mind understand that a $3.00 charge on ten buck withdrawal is a 30% fee.  Some of them don't even understand that they are paying a fee because they don't even check their bank statements at the end of the month.  I mean, like why bother, they can't balance them anyway.   But, that doesn't change the fact that dealing with an ATM is just like dealing with a loan shark except that they take your money up front without breaking your knees. 
Jan 18, 2013 4:21PM
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All you have to do is use your OWN BANK'S ATM. Problem solved. Or, y'know... don't bank with Chase.
Jan 18, 2013 3:21PM
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This is to hit the low income (sorry if this stings...uneducated) people in the wallet.  If you have $18 in the bank and they charge you $3.00 and your bank charges you $2.50 you are paying  45% to borrow the $12 you will be able to take out.  It is a move to entrap the low income into paying a bounce fee at their bank.  I am surprised the government hasn't stepped in to say...NO!  You will not take advantage of the uneducated. 

Wake up!  When they tell you it is good, it is only GOOD for the banks!!

Jan 18, 2013 3:52PM
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So if I want to get 100 singles to go to the club would I have to make twenty five $4 withdrawals?
Jan 18, 2013 4:37PM
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My advice: Run, don't walk, to Chase or Bank of America and close your regular banking accounts and transfer them to a credit union. There you  won't get ripped off by those banks and their fees so  guys like Jaime Dimon can collect his millions every year.  

Of course my daddy always told me: Don't give advice. Wise men don't need it and fools won't heed it.

Jan 18, 2013 3:52PM
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i don't see a problem. The customer knows what cost is before making any decision. the customer can go to his/her own network or not take any cash. Simple. The article is obviously trying to stir controversy about the evil banks and rich. No one is holding a gun to your head to make you pay the fees...on the other hand, the IRS does hold one!
Jan 18, 2013 3:51PM
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Remember poor people; this isn't a stupid idea if you buy lotto tickets with that $1.
Jan 18, 2013 4:59PM
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BoA is the worst bank ever.  Citi asks you to deposit $10,000.00 in there bank, leave it for a couple of months and get 30K American Airline points and earn $3.00 interest.  Then they send you a 1099 INT and say they spent $600 giving you the points.  That cost me $125 additional in taxes for me giving Citi $10,000.00 to hold for me. Needless to say, Citi will NEVER get a penny from me again.  BEWARE of corrupt banks
Jan 18, 2013 5:07PM
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All you people have to do is "Go To Your Own Bank's ATM".  You know; that is the bank

you have your checking or savings; etc. with.  They charge no ATM fees to their customers.

Hello; how hard is this to figure out.  If a person has a Wells Fargo ATM Card, then DO NOT

go to a CHASE ATM Machine to get money.  (This is just an example.)  If someone does this,

THEY deserve to pay a boat load of fees.

Jan 18, 2013 3:55PM
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stay away from those fraudsters that got bailouts, blood sucking banksters (goldman sach, citi, chase, boa etc etc....) then you'll be ok
Jan 18, 2013 5:39PM
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"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered."Thomas Jefferson

Jan 18, 2013 3:34PM
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If Chase's new machines will soon dispense coins, I have every right to jam in as many dirty grimey DNA-filled pennies into their machines as I want.
Jan 18, 2013 4:50PM
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Suggest rename the new ATM's:   JESSE JAMES MACHINES (at least he robbed with a gun)
Jan 18, 2013 6:03PM
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If you ever use an ATM that is not your own bank, thus paying a fee, that's your own fault.  This is great for customers of Chase like myself.  If you want to use their ATMs, get a Chase account!  Anyone complaining about this or accusing Chase of being dirty is just an idiot.
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