Thursday, March 17, 2011

JPMorgan (JPM), HSBC (HBC) Now Charging for ATM Use

With government interference wreaking havoc on the financial industry, banks are looking for alternative sources of revenue to that which has been regulated away, and JPMorgan (NYSE:JPM) and HSBC (NYSE:HBC) are now charging non-customers for the use of their ATMS, at a rate of $3 to $5 a pop.

When you combine a bank fee for going out of network onto the non-customer fee, and you have a formidable charge if customers do this consistent basis.

JPMorgan is charging a $5 ATM fee in Illinois and $4 in Texas for use of the service by non-customers. If significant revenue is generated in these two states, they plan on rolling out the plan nationwide.

For HSBC, its now charging a $3 fee for all non-customer use of its ATMs. They had already charged that at about 60 percent of their ATMs, and have now rolled it out to their entire network.

Other giant banks like Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) are expected to roll out similar fees soon.

HSBC closed in New York Wednesday at $50.00, down $1.90, or 3.66 percent. JPMorgan closed at $43.81, down $0.80, or 1.79 percent.

No comments: