Fees and Surcharging in Automatic Teller Machine Networks: Non-Bank ATM Providers Versus Large Banks
41 Pages Posted: 22 Dec 2006 Last revised: 2 Jan 2023
Date Written: August 2003
Abstract
This paper develops a spacial model of ATM networks to explore the implications for banks and non-banks of interchange fees, foreign fees and surcharges applied to transactions by customers at other than an own-bank ATM. Surcharging raises the price (foreign fee plus surcharge) paid by customers above the joint profit-maximizing level achieved by setting the interchange fee at marginal cost and not surcharging. Similar size banks would agree not to surcharge, but such an agreement is typically not possible between a bank and a non-bank. A high cost of teller transactions modifies the tendency towards high ATM fees.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Incompatibility, Product Attributes and Consumer Welfare: Evidence from Atms
-
Incompatibility, Product Attributes and Consumer Welfare: Evidence from Atms
-
To Surcharge or Not to Surcharge: An Empirical Investigation
By Timothy H. Hannan, Elizabeth K. Kiser, ...
-
Compatibility and Pricing with Indirect Network Effects: Evidence from Atms
-
Compatibility and Pricing with Indirect Network Effects: Evidence from Atms
-
Endogenous ATM Networks and Pricing
By Dan Bernhardt and Nadia Massoud
-
The Welfare Consequences of ATM Surcharges: Evidence from a Structural Entry Model
By Gautam Gowrisankaran and John Krainer
-
The Welfare Consequences of ATM Surcharges: Evidence from a Structural Entry Model
By Gautam Gowrisankaran and John Krainer