why do banks charge account holders if they use an out of network ATM?

[pinipig523]

It's unfortunate.

I'm glad my account allows for free ATM. But it's not easy to get this account because of the freebies.

[Tallysmom]

If I recall correctly (and I've been out of banking for 15 some years -- YAY self employment!) the reason the fees are high is that the cash gets partitioned.

Lets say you bank at Chase. But right next to where you work is Citibank. It's easier to go there. The ATM fee is 3.00. Citibank wants a piece of the fee -- they after all are providing a Chase customer cash they have to replace and paper they have to replace and the electricity to run the machine, and "rent" for the space the machine takes up. (trust me, if they can think of a reason to take a fee, they will take a fee.)

But the reason you can use your Chase card at Citibank is because they are part of the Star Network. Star Network wants their cut of the fee -- after all, without that logo and service, you wouldn't be able to get money out of that ATM.

By the way, That Visa or MasterCard LOGO? Yeah, they want their cut, too. After all, all those transactions are cleared at a massive clearing house for debit and credit transactions.

And then we get to your very own Chase bank -- yep -- they want a piece of that pie for the same reasons Citibank does. You are willing to pay for the convenience.

[LordSquidworth]

I've never payed an ATM fee. I use a schwab checking account, and my local bank (Camden National) reimburses all ATM fees, as well as foreign ones. Don't even have a minimum needed on either account.

Shop around. Support good banks.

[EverydayAddams]

Originally Posted by Penga25

i think it depends on your account. i have a premier checking account which comes with those benefits and doesnt cost me anything as long as i keep a certain balance. i think $2500

Correct. It's a great option. I'm sure other banks have accounts like this, which really do give great bang-for-your-buck. It's especially popular with people who travel a lot.

To the OP: You're paying for convenience, IMHO. You have free access to aptly named 'in-network' ATMs, so why would you go to another bank to withdraw money? It doesn't make sense. And if you absolutely need cash for your shady dealings with merchants who don't accept cards, get cashback at a drugstore or something.