ATM Fees at Black and Hispanic Owned Single Market Banks: A Comparative Analysis.

This paper presents evidence regarding three types of ATM fees: foreign fees charged for use of a non-bank ATM by the bank's customers, surcharges for use of bank ATMs by non-customers, and balance inquiry charges for the bank's own customers. It is hypothesized that, among single market banks, fees...

Descripción completa

Detalles Bibliográficos
Publicado en:Review of Black Political Economy Vol. 43; no. 1; pp. 69 - 85
Autores principales: Kashian, Russ, McGregory, Richard, Drago, Robert
Formato: Artículo
Publicado: Sage Publications Inc. Mar2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
fields @attributes:
  recordID: 1
pdfLink:
plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=112966507&site=ehost-live
header:
  @attributes:
    shortDbName: ssf
    uiTerm: 112966507
    longDbName: Social Sciences Full Text (H.W. Wilson)
    uiTag: AN
  controlInfo:
    bkinfo:
    jinfo:
      jid:
        00346446
        BLK
      jtl: Review of Black Political Economy
      issn: 00346446
      maglogo: Y
    pubinfo:
      dt: Mar2016
      vid: 43
      iid: 1
      pid: 344
      pub: Sage Publications Inc.
    artinfo:
      ui:
        112966507
        10.1007/s12114-015-9228-z
      ppf: 69
      ppct: 16
      formats:
      tig:
        atl: ATM Fees at Black and Hispanic Owned Single Market Banks: A Comparative Analysis.
      aug:
        au:
          Kashian, Russ
          McGregory, Richard
          Drago, Robert
        affil:
          Department of Economics, University of Wisconsin-Whitewater, 4304 Hyland Hall Whitewater 53190 USA
          Office of Multicultural Affairs, University of Wisconsin-Whitewater, 226 McCutchan Hall Whitewater 53190 USA
          Precision Numerics, Springfield 01108 USA
      su:
        Banking industry
        Economic competition
        Market segmentation
        Automated teller machines
        Administrative fees
      sug:
        subj:
          Banking industry
          Economic competition
          Market segmentation
          Other financial transactions processing and clearing house activities
          Office Equipment Merchant Wholesalers
          Office and store machinery and equipment merchant wholesalers
          Computer Terminal and Other Computer Peripheral Equipment Manufacturing
          Computer and peripheral equipment manufacturing
          Other Building Equipment Contractors
          All other building equipment contractors
          Commercial Banking
          Personal and commercial banking industry
          Other Depository Credit Intermediation
          Savings Institutions
          Automated teller machines
          Administrative fees
      keyword:
        ATM fees
        Competition
        Minority owned banks
        ATM fees
        Competition
        Minority owned banks
      ab: This paper presents evidence regarding three types of ATM fees: foreign fees charged for use of a non-bank ATM by the bank's customers, surcharges for use of bank ATMs by non-customers, and balance inquiry charges for the bank's own customers. It is hypothesized that, among single market banks, fees will be positively correlated with bank size, a lack of market competition, market penetration by multimarket banks, banks serving low income communities, and Black owned banks (BOBs) and Hispanic owned banks (HOBs), although banks may try to confuse depositors with fees that exhibit a low correlation, or may set low surcharges as part of a loss leader strategy. A 2013 sample of approximately 1500 single market banks, including 21 Black owned banks (BOBs) and 19 Hispanic owned banks (HOBs) is used for correlation and regression analyses. It is found that BOBs charge an average of $0.50 higher foreign fees, and are more likely to charge balance inquiry fees. We also find that larger banks tend to charge higher fees, and that banks may set higher fees where they serve disadvantaged communities of color. Surprisingly, market competition is never significantly associated with ATM fees, and there is minimal correlation across fees, and both results are consistent with banks setting fees strategically to confuse customers.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
    refInfo:
    copyright:
      @attributes:
        flag: N
    holdings:
      @attributes:
        islocal: N