“You really don’t care if you piss off someone else’s customer.”
At some point, raising ATM fees has got to backfire and be bad for business, right? Not necessarily. This week, Chase announced pilot programs raising ATM fees to as much as $5 per transaction for non-customers.
In a DailyFinance story about the simultaneous disappearance of free checking and rise of ATM fees, Brian Foran, an analyst for Nomura Securities International, explained why banks have no qualms about jacking up these fees:
“You never make tons of money on ATM fees to non-customers, but the idea is you really don’t care if you piss off someone else’s customer,” Foran says.
What about pissing off your own customers by charging them for what until recently have been fee-free checking accounts?