Financial institutions within the city limits here have been banned from charging nocustomers for use of automated teller machines.

The city council voted 4-3 on Tuesday night to outlaw the surcharges, solidifying a preliminary vote taken earlier this month, said Adam Radinksy, deputy city attorney.

The ban is to take effect Nov. 11. Council members who advocated the law argued that the fees are anti-competitive, since larger banks can try to attract consumers away from smaller banks by marketing their broader base of ATMs as a way for consumers to avoid fees, Mr. Radinsky said. Santa Monica also has a "disproportionately large" tourist industry, and "a lot of dollars are spent by visitors to Santa Monica who use ATMs quite a bit," he said.

Earlier this year the San Francisco Board of Supervisors tabled and effectively killed a similar ATM fee initiative, and advocates have taken their case directly to voters, who will cast their ballots Nov. 2.

The San Francisco vote will be the first public referendum on the matter.

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