A new study from the New York Public Interest Research Group shows that mounting ATM, credit card and gift card fees are costing many consumers much more than they realize.

The study, released on April 14 by the Syracuse University and State University of New York College of Environmental Science and Forestry chapter of NYPIRG, shows that the average ATM surcharge fee is $1.55.

ATMs are broken down into two groups: bank-owned ATMs and independent service operator-owned ATMs. Ninety-four percent of bank-owned ATMs assess a surcharge, while 100 percent of ISO-owned ATMs were found to charge a surcharge.

While NYPIRG is not necessarily against bank fees because some are necessary for banks to make a profit, the group is instead trying to educate consumers about the different fees. By making ATMs available to the public, banks cut down on necessary teller staffing. NYPIRG members are also lobbying to ensure that ATMs are safe for all consumers to use, and to force banks to inform their costumers about the fees they are charged.

‘A lot of people just don’t realize the fees they’re being charged,’ said Ryan Susser, a NYPIRG member. ‘Once they find out, they’re usually very concerned. People don’t understand the underlying fees. If they were apparent, a lot more people would care.’

On the SU campus, there are 14 ISO-owned ATMs. All of these are owned by SU, said Peter Webber, Syracuse director of auxiliary services. These machines are run through vending services, a department of student affairs which Webber oversees. Vending services also oversees stamp machines and soda and snack machines on the SU campus. The ATMs are located at most campus dorms and inside both campus student centers.

All of SU’s ATMs charge a $1 surcharge. Both Webber and Lou G. Marcoccia, SU’s senior vice president for Business, Finance and Administrative Services, said that this fee is used only to pay for machine repair and upgrades and new machines when they become necessary. They said this fee is comparably less than many other ATMs in the university area, some which charge as much as $2.50. They also said that they had received no student complaints about the fees.

The only bank-owned ATM on campus is the HSBC ATM located outside the Schine Student Center. This ATM has a $1.75 surcharge. Webber said that Chase bank used to have one inside the Goldstein Student Center on South Campus, but recently pulled out. Marcoccia said that banks are reluctant to come on the SU campus because the university would charge them rent for the property.

Susser and Sean Vormwald, NYPIRG project coordinator, though, are both concerned that there aren’t enough bank-owned ATMs on campus. They believe if more of these ATMs popped up, students would have more options of using an ATM owned by a bank they belong to. If a person uses an ATM owned by their own bank, no extra charge is assessed. Susser said in the future he’d like to campaign for the university to add more bank-owned ATMs.

‘As the banks have pulled out, we’ve moved in,’ Webber said. ‘The cost of our machines is purposely less and all of them are secure with cameras.’

NYPIRG is lobbying for banks to better inform their consumers of the fees they are paying. For example, NYPIRG believes that on each bank statement a consumer receives, the ATM fees should be listed separately. Currently, many banks just list these fees as part of the withdrawal. NYPIRG believes that if consumers saw that they could be wasting over $100 in ATM fees, they might better investigate their options.

Some consumers are also unaware that when they use an ATM not owned by their bank, they get charged both a surcharge from that ATM, but also by their own bank. NYPIRG also believes that this information should be included on bank statements.

Besides the ATM legislation, the NYPIRG report also gave recommendations for gift card and credit card legislation. One major problem with credit cards is that many consumers pay only the minimum payment, not realizing the interest fees that they’ll encounter later. NYPIRG wants credit card issuers to print on each bill the amount of interest a cardholder would have to pay if they paid only the minimum payment each month, Vormwald said.

Gift card fees are also problematic because many gift cards are now issued by credit card companies. These cards often have expiration dates and dormancy fees. Sen. Charles Fuschillo (D-N.Y.) has introduced legislation that is based on a current California law. Senate bill 5860 calls for the end of dormancy fees unless the card has gone unused for two years. The bill is currently in its third reading in the Senate consumer protection committee. Currently, American Express gift cards charge a $2.00 inactivity penalty if not used within a year. When the card expires, a $5.99 reactivation fee is charged.

‘These cards are meant to be gifts,’ said Susan Crain, a NYPIRG consumer advocate. ‘They’re not meant for the issuer to make money. Some people get a lot of cards as gifts and don’t use them all right away.’

Student members at all of the NYPIRG chapters collected information about ATM fees in their area. Staff members were responsible for putting together the survey. Now, NYPIRG at SU plans on doing its best to inform consumers through future press releases and tabling at Schine. The group also plans on developing future proposals and advocating for its current ones.

‘Consumers need to shop around,’ Crain said. ‘Fees don’t appear on receipts. They’re not going to realize how much money they’re wasting.’

Published on April 25, 2004 at 12:00 pm