Here Come the Fees part 1
by Sheyna Steiner
This roundup of fees from banks, credit card companies and lenders outlines some common expenses consumers face. Whether it’s a $50 fee for stopping payment on a check or a run-of-the-mill bank overdraft charge of $38, it’s time to stand up to fees. Use this guide to see what fees to expect, how much they cost and how to avoid them.
ATM/Debit
• ATM surcharges
• Bank-owned ATM fees
• Check-card: PIN transaction fees
• Check-card: Signature transaction fees
ATM surcharges
What it is: Despite the widespread acceptance of plastic, consumers still need cash. A convenient way of extracting cash from bank accounts is via an ATM. Less popularly and even less conveniently, banks usually demand money in exchange for the service when noncustomers use their ATMs.
Fee range: According to Bankrate.com’s Fall 2006 Checking Study, using the ATM at a bank other than your own costs $1.64 on average.
How to avoid: Plan ahead and get cash from your bank or an ATM that your bank owns. Alternatively, many grocery stores, major drugstores and stores such as Target and Wal-Mart offer the option of cash back when using a debit card to make a purchase.
Bank-owned ATM fees
What it is: Banks charge their own customers when they withdraw money from other institutions ATMs. Sometimes you get stuck with no cash and there’s not a familiar ATM in sight. When that happens, you’ll probably be charged twice — once by the owner of the ATM and then again by your own bank.
Fee range: In our Fall 2006 Checking Study, Bankrate found that the average fee a bank charges its customers who use another institution’s ATM is $1.25.
How to avoid: Plan ahead, budget and carry an adequate cash reserve. Grocery stores, major drugstores and stores such as Target or Wal-Mart offer the option of cash back when using a debit card to purchase, so if there’s one in the area and you need a bottle of water anyway, it could save you a buck or two to get cash from them instead of an ATM.
Check-card: PIN transaction fees
What it is: Some people could be paying a little bit extra when making purchases with a check card. A handful of banks charge a fee for every purchase made with a PIN instead of a signature. The 2007 Bankrate.com Check Card Survey found this fee to be almost extinct — only seven banks out of the 100 surveyed charge their customers for punching in a PIN instead of signing.
Fee range: The 2007 Bankrate.com Check Card Survey found that most banks do not charge a point of sale fee on either PIN transactions or signature. Most is not all though, and a handful of banks do charge a fee, ranging from $0.25 to $1 on each purchase made with a PIN, or $1 per month in one case. The median fee is $0.
How to avoid: Check the fee schedule before signing up for a bank account, or ask if you’ll be charged for making purchases with a check card. Shop around by checking the Bankrate.com rate tables to compare bank accounts across the country.
Check-card: Signature transaction fees
What it is: The option of credit or debit when using a check card for purchases means the difference between signing and punching in a PIN. Some banks offer reward points on signature transactions and, according to the 2007 Bankrate.com Check Card Survey, these are less likely to incur fees.
Fee range: For signature-based transactions, only one bank out of 100 banks and thrifts across the country surveyed in the 2007 Bankrate.com Check Card Survey reported a fee charged — $1 per month. The median fee is $0.
How to avoid: Check the fee schedule before signing up for an account or ask if you’ll be charged for making purchases with your check card. Shop around by checking the Bankrate.com rate tables to compare checking accounts across the country.
