Bank ATMs and ATM surcharges. FRBSF Economic Letter | December 16, 2005| | COPYRIGHT 2005 Federal Reserve Bank of San Francisco. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information) Copyright

The automated teller machine (ATM) has become a part of everyday life. According to Dove Consulting (2004), there are approximately 371,000 ATMs in the United States that process 30 million transactions per day. Concurrent with the growing deployment of ATMs has been significant variation in the price of ATM services. In particular, the surcharge fee paid by consumers using an ATM that does not belong to their bank increased from zero in 1996 to an average of roughly $1.50 in 2003. These price increases have been met with opposition from community groups who argue that the ...

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