Disloyalty Fee

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 ?
National Australia Bank (AX: NAB) (OTC: NABZY) and Bankwest, a unit of Commonwealth Bank of Australia (CBA) (ASX: CBA), have discarded their disloyalty fee for using rival ATMs.
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.
Barclays does not charge a disloyalty fee, but had until now planned to levy a charge, estimated at about pounds 1, for non-customers using its machines from January 1.
Some banks charge their own customers a "disloyalty fee" of up to pounds 1.50 for using rival machines.
Watchdog reported that Mr Cruickshank had found that some banks charge customers a "disloyalty fee" of as much as pounds 1.50 for using cash machines other than their own, while the cost of completing the transaction is just 29p.
Most big banks already charged their own customers a "disloyalty fee" for using rivals' machines, typically pounds 1.50.
After a deluge of complaints, they are to abandon the current "disloyalty fee" of pounds 1 which their 3.6million customers have to pay for using other banks' machines.
To rub salt in the wounds the banks also suggested they would introduce 'double charging' where their own customers would be charged a 'disloyalty fee' for using a rival's cash machine.
Lloyds TSB had already pledged to ditch its pounds 1.50 disloyalty fee for its own customers who use rival cash machines.
Other banks already charge customers a pounds 1.50 "disloyalty fee" for processing trans-actions involving rival machines, so any withdrawal could cost pounds 2.50.
He added: "It is totally unacceptable that some customers are currently being charged a disloyalty fee for withdrawing cash.
The cost of a cash card transaction is just 29p, but some banks already charge customers a "disloyalty fee" of as much as pounds 1.50 for using machines other than their own.