I was just reading an article that talks about how there are less transactions at cash machines and many of them are destined to be pulled from various locations. The average fee is around $1.50 per transaction at an ATM. The article also says that running an ATM machine can cost roughly $1,000 to $1,500 per month. I don't get this. How does it cost so much to run an ATM machine. Don't they just put the money in and collect the fees? Even if many people don't use the machine I don't see how it could cost so much to run an ATM. (I understand how the profits are down) I just don't understand the cost to run the machine. Could you explain this?

I am not 100% sure, but I imagine they have to pay for the space the ATM is in. For example, there is an ATM in one of the McDonald's here in town. McDonald's doesn't own the ATM, though, it's owned by an individual who has several of the machines in the area, kind of like a vending machine business. So I assume McDonald's doesn't allow them to have it there out of generosity--they must have to pay for the space. Probably electricity too. I assume also maitenance, and then possibly also a portion of the fee goes to the bank that the user has an account in. I mean, I have AlaskaUSA, and I don't pay a fee to use one of their ATMs, but it must cost them money to process the electronic transfer. They swallow the cost for their own ATMs, but if I use an ATM run by another entity I assume they take a portion of that fee for the processing.

This is just my guess-timate.

I don't understand it either Clare. Most of the ATM's in the UK are free to use. The ones that charge are usually in motorway service stations etc. We don't have to use our own bank's machine, we can get cash from any of them, providing they will accept our cards of course. The fee quoted seems very high. I'm sure it does not apply in the UK or the banks would definitely be charging us to use them.

Jen, I have been charged this year on two occasions when using an ATM of a different bank from my own. Barclays seem to do it, charging between £1 to £1.50 for the privilege. Keep an eye open!...

My bank card has the 'Link' logo on, therefore I can use it in any ATM with the 'Link' symbol.
I use cash machines all the time, at various locations and have never been charged at all.
About time you changed to a 'proper bank' Ritz!

I have been short-changed by every proper bank, Jenny; I trust none of them!

Part of the cost must be for the machine itself. Here are some ATM Machines ranging from $1997 to $4997, plus installation and shipping costs.

And this article breaks down ATM operating costs.

The average figures given in this 1999 study are:

Depreciation/Lease: $300
First Line Maintenance: $270
Second Line Maintenance: $150
Cost of Funds: $97
Telecommunications: $123
Terminal Driving & Processing: $100

TOTAL: $1,090

Thanks Fuse!