Banks Paying High Price For Steep Atm Charges Survey Shows Consumers Shun Institutions With High Fees

Bank customers know ATM fees can be costly, but a new study suggests the charges may also cost banks.

A survey of 1,000 people by Opinion Research Corporation International found that 67 percent said ATM fees discouraged them from considering doing business with the fee-charging bank.

“ATM fees are a complete turn-off for many, many consumers,” said Jeffrey T. Resnick, executive vice president of Opinion Research. “In this environment, banks with fees are missing out on countless opportunities to establish and strengthen customer relationships.”

Still, some institutions say they are not persuaded by Opinion Research’s findings.

“It’s an interesting conclusion,” said BankAtlantic spokesman David Finkelman. “But I don’t know of any bank that is waiving the fee for noncustomers. (Fees) are an important source of noninterest income for banks. And I just don’t think that an ATM is going to be the deciding factor in how someone chooses a bank.”

But Resnick insists the institutions should rethink the fees.

“Commercial banks should reconsider that approach,” he said. “Banks that institute a no-fee or, if necessary, a nominal-fee strategy can attain a distinct competitive advantage.”

The study also found that about 78 percent of bank customers said they go out of their way to avoid using machines that will charge them fees.

And 85 percent of those who said they had been charged an ATM fee said they were unhappy about the charge.