Opinion: Stop the steal on ATM fees

Every day, New Yorkers face impossible choices: rent or groceries, child care or the ConEd bill. Politicians talk about “affordability” constantly, but for most people, it’s more than a slogan – it’s survival. The bills, expenses, payments and penalties never stop. Even taking money out of your own account comes with a price.

ATM surcharges and fees have climbed steadily. Today, New Yorkers pay nearly $5 every time they withdraw funds. For families living paycheck to paycheck, relying on cash to manage their budget, that’s a regressive poverty tax that can add up to hundreds of dollars a year.

ATM fees are predatory because they hit low-income and working class people the hardest. In underbanked neighborhoods like Coney Island, residents often have no choice but to use high-fee ATMs in bodegas, laundromats or takeout spots. These machines charge the most, carry the highest fraud risk and quietly extract wealth from the people who can least afford it. 

People with limited funds also tend to withdraw smaller amounts more often, meaning they pay the fee repeatedly just to access their own hard-earned money. Once again, the very communities already struggling to save and build wealth are hit hardest by hidden costs and predatory practices.

Independent ATM operators thrive on scarcity. As banks retreat from low-income neighborhoods and communities of color, a vacuum opens up and anonymous, often sketchy companies rush in, charging excessive fees on every withdrawal. The machines are rarely monitored, accountability is murky and consumers are left holding the bag. Even when nothing goes wrong, people are taxed just to access their own cash. And when something does go wrong – identity theft, fraud or stolen information – there’s often no clear path for restitution.

This is an equity problem, a consumer-protection problem and an affordability problem all at once. For too long, regulators have allowed this shadow industry to operate without meaningful oversight. That has to change.

Fortunately, solutions are already on the table. In Albany, lawmakers have introduced bills to register non-bank ATM operators, cap fees and require clear disclosure for consumers. Another proposal would license operators, limit surcharges and strengthen transparency. These bills exist because the status quo is failing New Yorkers. Passing them would bring real oversight for the first time and cap fees at a fair, manageable level.

But we shouldn’t wait on Albany alone. New York City has tools it can use right now. The Department of Consumer and Worker Protection already regulates deceptive business practices. It could require storefront ATMs to post clear fee signage, display operator contact information and create a 311 category for surcharge abuse or suspected fraud. City Hall could also demand tamper-evident seals and faster remediation when skimmers are discovered. Even without state action, city government can shine a light on this industry and hold shady operators accountable.

Here’s what a comprehensive approach should include:

• Cap surcharges. A $5 fee hurts someone taking out $20 a lot more than someone taking out $200. It’s a tax on being poor, and it adds up fast. A $1–$2 limit per transaction would still allow operators to profit while easing the burden on families already stretched thin.
• Require registration and accountability. Every ATM operator should be licensed and publicly traceable, with a verified owner, physical address and 24/7 contact number. No more shadowy companies with zero accountability.
• Enforce anti-skimming standards. That means tamper-evident seals, inspections and penalties for compromised machines.
• Create a reliable complaint pathway. Consumers who lose money to fraud deserve a fast refund process backed by mandatory liability insurance.

None of this is radical. These are basic consumer protections that cities and states use every day when businesses exploit the public. If we say we care about affordability, we have to mean every dollar counts.

From big investments in affordable housing to small consumer safeguards, building a livable city requires both big, bold vision and attention to small, insidious detail. Reining in predatory ATM practices is one of those details that deserves action now. New Yorkers work too hard for their money to have to pay to access it or risk losing it to thieves while they do.

Only in America do you get charged to take out your own money and the less you have, the more it costs. At a time when the cost of living is rising everywhere you look, our government must act wherever it can to make life easier for working people. Cracking down on crazy ATM fees and shady operators won’t solve the affordability crisis alone, but it’s a piece of the puzzle that can deliver immediate, tangible relief for millions of New Yorkers just trying to make ends meet. In the richest city in the world, we can’t afford to do nothing. New Yorkers deserve access to their own money without being punished for it.