TY  - JOUR
AU  - Croft,Elizabeth W.
AU  - Spencer,Barbara J.
TI  - Fees and Surcharging in automatic teller machine networks: Non-bank ATM providers versus large banks
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9883
PY  - 2003
Y2  - August 2003
UR  - http://www.nber.org/papers/w9883
L1  - http://www.nber.org/papers/w9883.pdf
N1  - Author contact info:
Barbara J. Spencer
University of British Columbia
Sauder School of Business
2053 Main Mall
Vancouver, BC  V6T 1Z2
CANADA
Tel: 604/822-8479
Fax: 604/822-8477
E-Mail: barbara.spencer@sauder.ubc.ca
AB  - This paper develops a spacial model of ATM networks to explore the implications for banks and non-banks of interchange fees, foreign fees and surcharges applied to transactions by customers at other than an own-bank ATM. Surcharging raises the price (foreign fee plus surcharge) paid by customers above the joint profit-maximizing level achieved by setting the interchange fee at marginal cost and not surcharging. Similar size banks would agree not to surcharge, but such an agreement is typically not possible between a bank and a non-bank. A high cost of teller transactions modifies the tendency towards high ATM fees.
ER  -