Lawmakers are currently debating the future of the U.S. banking industry and, if a crew of three Democratic senators has its way, banks will slash ATM fees down to a mere 50 cents.
Spearheaded by Iowa's Tom Harkin, the ambitious proposal is pushing the idea of capping fees for cash-strapped Americans. For the record, consumers on average shelled out a whopping $3.54 per transaction, according to Bankrate.com.
However, the cash-dispensing machine cap could result in the reduction of the 425,000 ATMs scattered throughout the country.
"You could get an ATM wasteland," warns Nicole Sturgill, research director in delivery channels for consulting firm TowerGroup.
Others speculate that the 50 cent limit would force banks and credit unions to impose fees on their customers to compensate the loss of revenue and the cash bank's need to maintain the money-dispensing machines.
"When you use another bank's ATM you are helping defray the costs for everyone using that ATM," Sturgill adds. "I think that is a piece that gets lost in there."
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