Why do some banks charge you a fee to view your account balance at an ATM?

Question

I used to use M&T; and when I first used one of their ATM's, there was an option for something called a "mini-statement." Curiously, I selected it expecting to see a list of some of the checks I cut and transactions done since I was just starting college. It turned out that I was charge a fee for that; although I was able to view my account balance. I never understood why. I later changed banks.

I eventually got a part-time job at the mall. Unfortunately, the company paid us either through direct deposit (which wasn't going to be set up for me for a few weeks) or via these ATM cards from the Visions Federal Credit Union.

I went to one of their ATM's, checked my balance (which they charged a fee for), and then tried to withdraw the full amount. Unfortunately, because I was charged a fee to see my balance (which was before the balance was less the account balance viewing fee), my balance had changed; and the withdrawal attempt failed, which charged me a "Declined" fee.

It occurs to me now that a federal credit union is obviously not a bank, so of course i would expect more fees. Still, since coming here, I've had a bank charge me a fee to just view the last couple of transactions, and a credit union charge me a fee just to view my balance before withdrawing. The fees seem a bit excessive.

At the time I had M&T, I didn't have my internet checking set up due to M&T saying that you could only set one up during their normal business hours, even though I was doing this online and was extremely busy that first week. On top of that, their people screwed up the password I had submitted to them and I couldn't access my internet banking account for a short while. Annoyed, I eventually canceled my M&T account and got a new bank.

However, I'm still waiting for my company to get their act together and set up direct deposit for me, because I'm already sick of their joke of a payroll system. Being charged 2 fees on a failed withdrawal is unbelievable.

I also forgot to mention that the credit union doesn't have any online account access for our accounts with the way the company set my payroll up. I was essentially just handed an ATM card and a PIN. I did have a number for customer service, but I hate dealing with those people.

I later found out that there was a phone number to check the account balance on the ATM card. However, it's not up to minute. So when I dialed it to double-check the balance about half an hour after being charged the fees, it didn't include the updated balance, which only confused me further. It wasn't until I finally dealt with the cust. service that I learned about the idiotic fees. I can understand why ATM cards charge fees. Most don't have level of fraud protection that credit cards have.

How does checking a balance via ATM tie up the line compared to doing this online? I'm not too knowledgeable about ATM's, but can't bank web servers be tied up too? What's the capacity difference between the 2?

Oh yeah, and of course the credit union refused to refund the fees. Makes sense, since this is probably a nice revenue stream for them. The bank did refund the charge; which was nice, but of course, it's a bank; so they have that kind of leeway.

Answer 1

Short form: Because they CAN. It is an 'open secret' that the single largest source of income for banks is fees. The ATM should have notified you of the fee and given you a chance to cancel the statement before you were charged. Even if it did not, I guarantee the fee schedule you were given when you opened the account and/or an update you received with one of your statements DID spell out the fee.

Answer 2

Wow! What a get over these banking institutions have become. I really don't appreciate the fact that so many banks with ATM's charge for withdrawal of my own money. Back in the day the charge used to be 25 cents, now it can be as much as $3.00. That's just a total rip off as far as I'm concerned. They limit the number of tellers at any given bank so that if you go inside to withdrawal funds the wait is ridiculous. That business of getting paid with an ATM card isn't so great either. You can never know for certain if they might have messed up on your pay unless you check the balance and then you get charged for doing that.You can't beat the system and it seems that we can't win for losing!

Answer 3

It costs a lot of money to be poor. I always have more than the max I could withdraw from my account in there, so I never have to pay these fees. I also take enough out at one time that I dont visit ATMs that often - also I use credit cards for most purchases.

Most banks provide a printout of the balance even without the mini-statement thing, so that's a pure waste of money. Plus, with online banking, there's almost no excuse for this mini-statement BS. On the part of the consumer I mean - the banks are free to offer this perfectly legal service and let suckers and/or the poor and/or the rich (those who don't care about the few dollars of fees at all) fall for it.

Marie says, 'Maybe they're out to make money?' No s***! There's a for-profit bank - that's exactly what they're out to do, same as the car dealership, your doctor, and McDonald's.

Answer 4

If you used your own banks ATM, it is a bit of a stretch to charge you a fee, but with a balance of only 75 cents, it is also a bit of a stretch to check your balance. Your best move would be to go to the bank and ask politely to have the matter cleared up.

Answer 5

Because they can get away with it. Before dealing with any bank, check out all their rules carefully. In your case, go to the credit union and complain; they are playing dirty pool. Tell them that they will either refund the fees, or you will deal with another institution as soon as your direct deposit is set up. This can work; I have done it.

Answer 6

Because banks like to advertise "Free this, free that", and have to come up with sneaky ways to charge you and tell you that you should have read the fine print.

Banks will sometimes refund one fee so I suggest calling them and asking them to reverse the Declined fee.

It's weird that your job won't cut you a check.

Answer 7

Banks don't want you tying up the network with just balance inquiries. Use their online site for that. It is free.
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Answer 8

Because there are suckers who will pay it. I'm surprised if they didn't let you know upfront though. I'm glad you changed banks.

Answer 9

I know. That happens to me all the time, it's crazy. Maybe they are just out to make money...

Answer 10

PURE GREED!