The Impact of ATM Surcharges on Large Versus Small Banks: Is There a Customer Relationship Effect?
نویسندگان
چکیده
This paper uses a unique database to test the effect of ATM surcharges on large versus small banks. Specifically, we examine the impact of ATM surcharges on bank customer incentives to switch accounts, from smaller banks to larger banks, in order to avoid ATM surcharges. We find that ATM surcharges increase the market share of deposits of large banks and decrease the market share of the smaller bank. ATM surcharges also positively impact the profitability of larger, but not smaller, banks. Overall, there appears to be a positive customer relationship effect for larger banks resulting from ATM surcharges.
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