The Truth About Credit Cards.com

As the credit crunch carries on, banks and lenders are increasingly looking for ways to boost capital to offset rising losses.

And one such popular way is by increasing fees, most banks bread and butter these days.

So beginning last week, Wells Fargo imposed a higher transaction fee on ATM withdrawals at non-Wells Fargo ATMs, raising the cost from $2.00 to $2.50, a whopping 25% increase.

So if you’re a Wells Fargo customer, expect to pay more when you use non-Wells Fargo ATMs.

Instead of paying say $2.00 on both ends for an ATM transaction, the cost could now be significantly higher depending upon where you withdraw money.

For example, if you’re a Wells Fargo customer and you take $20 out of a Bank of America ATM machine, expect to pay a hefty total of $5.50, or 27.50%.

That’s because Bank of America recently raised their non-customer ATM fee from $2.00 to $3.00.

So next time you need money, look for a Wells Fargo branch before considering a withdrawal at a competing bank, otherwise you’re simply throwing money away.

Expect other banks to follow suit in coming months, and for these fees to keep marching higher in the years to come.

Tip: Wells Fargo charges $1.50 for a balance inquiry and $5.00 for an international transaction at non-Wells Fargo ATMs.

(photo: justinbaeder)