Everyone is probably aware that one of Jack Layton’s issue is ATM fees. He thinks they are too high. I don’t think the fees are two high but I think they are inequitable. If you take out 100 dollars and you pay 1.50 you are only charged 1.5%. Credit card companies charge stores 3% per transaction. Surely that is a perfectly reasonable fee so that we can have convent service. If you take our 1000 dollars you are laughing.
However, if you take out 20 dollars you pay 7.5%. For anyone who doesn’t have much money and is trying to save they have a choice of taking out a large amount to minimize their frees or taking out a small amount and paying a disproportionate amount of the fees. It is not 20 dollar withdrawals that are responsible for the majority of the costs of ATMs yet low withdrawals give by far the best returns for ATM operators. I think to put a 3% maximum fee on ATM withdraws would be perfectly reasonable. Maybe the fees might have to be adjusted for the larger withdrawals but should the poorest people really be paying for the majority of ATM fees.
However, if you take out 20 dollars you pay 7.5%. For anyone who doesn’t have much money and is trying to save they have a choice of taking out a large amount to minimize their frees or taking out a small amount and paying a disproportionate amount of the fees. It is not 20 dollar withdrawals that are responsible for the majority of the costs of ATMs yet low withdrawals give by far the best returns for ATM operators. I think to put a 3% maximum fee on ATM withdraws would be perfectly reasonable. Maybe the fees might have to be adjusted for the larger withdrawals but should the poorest people really be paying for the majority of ATM fees.
