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 1.50.
At present, some banks, such as Lloyds TSB, HSBC and Abbey National, charge so-called disloyalty fees of between pounds 1 and pounds 1.50 when their own customers use other banks' cash machines.
'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.
The campaign comes as Barclays wards off criticism over banks charging "disloyalty fees" of up to pounds 2.50 for using other banks' cashpoints.
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.
He said disloyalty fees brought in pounds 25million a year for Barclays but surcharging would only bring in pounds 15million.
Former Oftel boss Don Cruickshank condemned "disloyalty fees" of up to pounds 1.50 for hole-in-the-wall transactions which cost the banks 29p.
Mr Cruickshank was appointed by the Treasury to assess the ATM system, ahead of a decision by members of the LINK network to consider upping their charges and even slapping 'disloyalty fees' on customers who use other banks' machines.
He added: "It is totally unacceptable that some customers are currently being charged a disloyalty fee for withdrawing cash.