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 18, 2013 3:34PM
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 3:33PM
I remember back in the eighties when banks started a fee for withdrawals from there own customers. I was cleaning a atm and the bank charge a .50 cents for everyone and1.50 for a read out of there accounts. I pick up  this one read out and i think they was charge a little more then 30.00 for using the atm.
Jan 18, 2013 3:26PM
Jan 18, 2013 3:21PM

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 3:11PM
No sympathy at all, any moron who would pull one dollar out of an ATM is either a bum or stupid.
Jan 18, 2013 2:57PM
JP morgan Chase is as low and scummy as Bank of America
Jan 18, 2013 2:49PM
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 2:45PM
Typical Bank move......join a CREDIT UNION...Banks suck ****.
Jan 18, 2013 2:43PM
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? 
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