ATM fees: does bank size matter?
ATM networks have allowed banks to charge non-customers for withdrawing money from their ATMs since 1996, but ATM surcharges have been criticized repeatedly by consumer advocates and politicians. Large banks have been especially targeted, because they are more likely to impose the fees and their fees tend to be higher than those charged by small banks. However, surveys comparing ATM fees across financial institutions do not control for differences in quality among banks of various sizes. ; This article analyzes differences in ATM fees among banks in order to test whether large banks impose higher fees than do small banks. The author uses regression analysis to control for quality and costs of banks' ATM services, as measured by the number of ATMs and the fraction of machines located off bank premises. Banks with more ATMs offer greater convenience to cardholders, and institutions with more off-premise machines tend to have higher costs. The author finds evidence that large banks impose higher surcharge fees, but the difference in foreign fees becomes insignificant after the number of ATMs is taken into account. She notes that there are no economic reasons to ban ATM surcharges, since customers can and, for the most part, do avoid paying surcharges by finding machines that do not impose them.
Volume (Year): (2000)
Issue (Month): Jan ()
|Contact details of provider:|| Postal: 600 Atlantic Avenue, Boston, Massachusetts 02210|
Web page: http://www.bos.frb.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David B. Humphrey, 1994. "Delivering deposit services: ATMs versus branches," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 59-81.
When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:2000:i:jan:p:13-24. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.