Disloyalty Fee

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Disloyalty Fee

A small fee that a bank customer pays for using an ATM belonging to another bank. In the United States, the disloyalty fee ranges from $2 to $5.
References in periodicals archive ?
Banks which do NOT charge disloyalty fees - and so let you get money free from any ATM - are Barclays Bank, the Co-op Bank, Halifax, Nationwide, the Royal Bank of Scotland and Lloyds TSB.
But customers often don't realise that they still, in some cases, face a disloyalty fee charged by their OWN bank when they use the cash machines of another.
But you can still be caught by charges until January 1 - Abbey National, NatWest, Halifax, HSBC and Lloyds TSB still have disloyalty fees until then of up to pounds 1.
At present, some banks, such as Lloyds TSB, HSBC and Abbey National, charge so-called disloyalty fees of between pounds 1 and pounds 1.
A lot of people don't know that they have been charged disloyalty fees for using other banks' cash machines because not many people check their statements carefully.
Some organisations, such as the Co-operative Bank, the Nationwide Building Society and Tesco Personal Finance, which operates hundreds of cash machines in its own stores, have pledged not to make any charges for using their cash machines, nor to charge disloyalty fees to their own customers going elsewhere.
Tesco Personal Finance does not charge disloyalty fees or surcharges.
However, there has been no move to end disloyalty fees, no move to end surcharging, and no move to put a limit on what Link members can charge for a cash transaction.
Currently Lloyds TSB, Halifax, Abbey National, HSBC and NatWest charge disloyalty fees, while Woolwich, which has a network of convenience machines, has a pounds 1 surcharge for using them.
The row erupted when Barclays, which does not charge disloyalty fees, tried to impose a pounds 1 surcharge on non-customers using its machines.
Link chief executive Mr John Hardy said the banks had agreed that where customers faced a double charge the disloyalty fee would be waived electronically.
He said disloyalty fees brought in pounds 25million a year for Barclays but surcharging would only bring in pounds 15million.