Senators Seek ATM Fee Cap at 50 Cents

(Dow Jones Newswires) - Chalk up ATM fees on the list of amendments that may make their way into the bank-overhaul bill under debate in Washington, Dow Jones Newswires reported Thursday.

Sen. Tom Harkin (D-Iowa) introduced an amendment Wednesday that would cap fees for withdrawals at automated teller machines at just 50 cents per transaction.

"The cost of fees that consumers pay has skyrocketed," he said in a speech on the Senate floor.

Banks charge an average of $2.66 each time a consumer uses an ATM to withdraw cash, according to the Federal Reserve. In some cases, such as at casinos or airports, those fees reach as much as $5 a transaction.

"It's unfair for people to pay that much to access their own cash," Harkin said.

His amendment would require the consumer financial protection agency, another proposal under consideration in the bank-overhaul bill, to make ATM operators limit their fees to the cost of providing the service.

By his calculations, based on those made by the Office of Thrift Supervision in 1997, the cost today is about 36 cents per transaction. That's up from 27 cents in 1997, with inflation factored in.

A vote on the amendment, which is co-sponsored by Sen. Chuck Schumer (D-N.Y.) and Sen. Bernie Sanders, (I-Vt.), has not been scheduled.

Source: Dow Jones Newswires