ATM Fees Under Fire

Voters in San Francisco get to show banks how they feel about those one- and two-dollar ATM surcharges. Residents are being asked to vote Tuesday on the hot-button consumer issue, as CBS News Correspondent John Blackstone reports.

ThereÂ's little doubt that the proposed ban of cash machine fees will pass, but since banks don't like the idea, theyÂ're certain to challenge any injunction. Bankers contend the charges help pay for their growing networks of ATMs.

"They're constantly charging you for everything and I think people are sick of it," says one resident.

The fees can add up if you use an ATM at a bank where you don't have an account. The ATM affixes one charge, and your own bank adds another. Pretty soon, it can take a $3 bite out of your $20.

Santa Monica has already passed a city ban on surcharges, and other California communities are considering bans. Connecticut and Iowa have already passed laws implementing the ban.

"The voters and the consumers do have a right to stand up to price gouging," says San Francisco City Supervisor Tom Ammianno. He has been fighting to ban the fees.

But the banks say if they lose this round, they'll eventually win in court.

  • CBSNews.com staff CBSNews.com staff

Comments