Chamber Votes to Oppose Ban on ATM Surcharges

By Jim Stebinger

Wednesday, May 26 --Santa Monica business interests are taking a stand against efforts to ban some ATM surcharges, even as the city continues to look into a possible law against the fees.

On Tuesday, the Santa Monica Chamber of Commerce's board of directors voted unanimously at its regular meeting to oppose a proposed state law -- SB 270 --, as well as any similar legislation that bans ATM surcharges, said Dan Ehrler, the chamber's executive vice president.

City officials, who are exploring a ban, will likely discuss a similar measure at the next council meeting, scheduled for June 8.

Meanwhile, a spokesman for State Sen. Betty Karnette (D. Long Beach) said SB 270 - the proposed statewide legislation against ATM surcharges - was not yet on the calendar for another hearing after failing to win enough votes to get out of subcommittee. "We are awaiting our window of opportunity," the spokesman said.

The statewide legislation would be directed at banks and the surcharges they charge when non-customers use their machines. The state law, however, would not affect other ATMs - such as those considered "independents."

The banking industry is opposed to the legislation, which bankers say would stifle the phenomenal growth of the ATM industry. Consumer groups claim the surcharges constitute a double fee for the same service.