Are ATM operating costs the real reason banks charge ATM fees, or is it mostly profit-taking?
Banking
Asked by Question Bot04/Apr/20161 answer
1 Answer
F
Faisal Khan
Answered 04/Apr/2016
It depends where in the world you are talking about. In certain countries and in certain geographies and ATM makes money. For banks, in most locations, especially branch, they do and they don't. Mostly, they don't. An ATM is a required prerequisite for most branches.
In places like India, Pakistan, Bangladesh, Nepal, Philippines, Indonesia, Malaysia, etc. ATMs are required by law to be installed at all bank branches, and hence rarely make money.
But, your mileage may vary depending on the location and foot traffic. The costs associated with running an ATM in one of the countries above, is high, so by no way or means is the client being ripped off, it just is expensive to operate it and make money out of it.
In places like India, Pakistan, Bangladesh, Nepal, Philippines, Indonesia, Malaysia, etc. ATMs are required by law to be installed at all bank branches, and hence rarely make money.
But, your mileage may vary depending on the location and foot traffic. The costs associated with running an ATM in one of the countries above, is high, so by no way or means is the client being ripped off, it just is expensive to operate it and make money out of it.