The Scourge of Humanity

Before we became preoccupied with the world’s most recent existential threats, the thing that really got our goat were ATM fees. I never got it — by becoming more efficient and saving on overhead and labor costs, banks somehow felt it was reasonable to then turn around and charge their customers more. Suffice it to say, this was bullshit.

Now we hear that as competition among banks locally heats up, Commerce Bank has announced that it will offer reimbursements to its customers for fees incurred while using other banks’ machines, (having already eliminated ATM fees for non-customers):

At worst, customers making a withdrawal from another bank’s machine get hit twice. The bank that operates the machine charges them $1 or more for the service, and their own bank charges the same for their infidelity. That can amount to a 15% premium for a $20 withdrawal. [Commerce chairman Vernon] Hill said these fees always top consumers’ list of complaints.

Commerce has never charged customers for using another bank’s machine. That’s not a first: Washington Mutual stopped two years ago.

But reimbursing its customers for fees charged by rival banks puts Commerce on uncharted ground. It’s no small commitment: Commerce customers paid $40 million in ATM fees to other banks last year.

A publicity ploy? I’ll gladly participate in spreading the word. The other banks must be shamed into abandoning their extortionate fees!