U.S. Sen. Tom Harkin, D.-Iowa, has dropped plans to try to place a 50-cent cap on ATM surcharges, the National Association of ATM ISOs and Operators, a trade group representing ATM independent sales organizations, published in a May 19 bulletin.
The senator instead inserted language in his proposed amendment that ATM ISOs could charge a reasonable surcharge fee based on the amount of the cardholder’s cash withdrawal. The Federal Trade Commission would determine surcharge amounts, according to the association, which opposes the compromise language.
On Tuesday night, Harkin’s Senate colleagues turned down his request for a vote on his amendment, which, if passed by both Houses, would become part of the proposed Consumer Financial Protection Bureau.
The average ATM surcharge fee is $2.22, according to a Bankrate.com survey taken last fal. Most ATM owners, however, charge $2 to $3 per cash withdrawal.
Surcharge fees created the retail, or off-premise, ATM industry in April 1996, when Cirrus and Plus networks dropped opposition to surcharging, says Leon Majors, president of the payments systems practice at Phoenix Marketing International, which is based in Salisbury, Md. (
