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, 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
Jan 19, 2013 11:28AM
The only moves that banks make are ones that will make them more money. There is no care for their depositors and even less care for people out of their network. If blowing up the moon would make them an extra billion dollars in profit, the banking industry would petition the government that the moon was a national threat to our lifestyle and that destroying it would somehow benefit all of mankind.
Jan 19, 2013 8:28AM

Ban that Fraud Street Ponzi Scheme.


How dare business owners use other peoples money to expand their companies. Since they are so smart and independent and don't need anyones help to prosper and grow their business(s), why is it that they are always seeking everyone elses money? HYPOCRITES!


If you are all so smart, independent and proficient,.... DO IT ON YOUR OWN! Expand your business(s) with your OWN money and stop BEGGING for everyone elses money. GREEDY AND FRAUDULENT SCUMBAGS!

Jan 18, 2013 10:46PM



Do your civil and patriotic duty and exterminate a 1% today. One scumbag at a time will get the job done.


Exterminate the cancer named GREED!




Thank you and God bless America!

Jan 18, 2013 10:02PM
Charlatans and Thieves......(and way too many Stupid People).

Jan 18, 2013 9:57PM
people are gullible .... if banks can get them to spend it to get their own money then they deserve to loose it !!!!
Jan 18, 2013 9:55PM
say what they want but all i c is the bank nickle and diming you to death
Jan 18, 2013 8:55PM
My ATM Card can be used at any ATM in the country with NO FEES. I use First Bank,,, a branch of FIRST NATIONAL BANK. I really get outstanding service there.
Jan 18, 2013 8:43PM

I think this is a great idea, but the bank and/or this article is pitching it all wrong.  It's not just for customers with a bank balance of less than $20.  I frequently have to go through the drive-thru teller window at the bank and write myself out a check to cash in order to get ones, five, or tens because my kids need $6 for a field trip or $12 to pitch in for the holiday party at school.  It's not the teacher's job to make change for all the parents in class who just have a $20.  How many times have you been at the grocery store, or behind someone at the grocery store asking the cashier to break a twenty?  Why is it the grocery stores responsibility to order extra cash to meet our need for small change?  And why would I want to waste money buying a pack of gum when all I really want is the change from said pack of gum?


Once when I had absolutely no cash, I picked my son up from school to learn that he'd lost a tooth so I had to write a covert note to the drive-thru teller at the bank when withdrawing money to make sure that she gave me back some of my cash in ones so that I could be tooth fairy for the evening without my son waking up to a pile of nickels.  In cases like this it doesn't matter how much money you have in the bank if your kid's pillow isn't set up to accept credit cards.


I also always try to have cash on hand so that I can tip appropriately.  When we go on vacation or my husband travels for work I always go to the bank to get extra fives for housekeeping, etc so that I don't have to go to the front desk for change all the time or waste money at the gift shop by breaking bills.  Having correct change IS an important part of smart budgeting.  I'm glad I'm a Chase customer.

Jan 18, 2013 8:22PM
Just another way for banks to make a profit. These guys hire experts to devise a plan that will go after the masses and maximize profits. At what point is it considered to be out of hand? There is no point where it will be considered out-of-hand. Once again Americans tolerate this activity, mostly due to the fact that we have become lazy and incompetent.
Jan 18, 2013 8:18PM
Do we not value our time? Even if you only make $6/hr every minute wasted in an extra ATM trip is 10 cents. I guess if this saves you from needing a payday loan... I have no "business" sense only uncommon sense.
Jan 18, 2013 8:12PM
Another bank scam to prey on the poor and un educated.  Charge 3.00 to give you 1.00 - can you imagine how many millions of transactions they make every day.  Capital One was sued by the West Virginia attorney general for targeting the poor in coal mining towns by offering credit cards -
After the people applied and were approved, they found that the limit was 300.00 and there was a 60.00 annual fee charged up front.  So the 240.00 loan cost 60.00- 25% percent up front interest- on top of that, they did not notify the consumers of the annual fee , so if  they had charged  up to the 300.00 limit, it put them into over limit and that tacked on another 35.00 fee for every transaction.
Jan 18, 2013 8:08PM
My bank reimburses for all ATM fees.

Jan 18, 2013 8:06PM
Why would anyone go to an ATM for $1 or even $5. What a waste of time. Why not go to the store and buy something and get cash back? Oh I know the bank won't be able to SCREW you doing that.
Jan 18, 2013 7:40PM
The easy fix is dont use an ATM that is not from your bank system... No fee
Jan 18, 2013 7:26PM
Okay, keep in mind that if you stay in the network, there is no fee.  Only if you go outside your banks network do you pay a fee.  And remember that it isn't your bank that does it.  It is the bank who owns the ATM that charges you.  so if you have a chase account and go to PNC, then you will pay their fee.  That money goes to PNC and not to chase.  

Jan 18, 2013 7:18PM
Keep taking.... The economy will NEVER revive...
Jan 18, 2013 6:46PM
Now the banks really can get you. It used to be people robbed banks now I feel they are getting back at us by robbing us. They don't even need a gun to do it. Just put up a bunch of these machines and there goes the money. Stay away from big banks. They smile in your face and stab you in your wallet.
Jan 18, 2013 6:34PM
The banks wanted to make their lives more easy. So they made ATM machines, because to many people was going into the banks. So by having them them, they also did not need as my employees. Funny now how they once used this ideal to save them time and money is now costing us all more money out of pockets. Funny home that works.
Jan 18, 2013 6:10PM
Jan 18, 2013 6:03PM
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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