Dictionary definition of “disloyalty fee”

disloyalty fee

n. money charged by a bank to a client for using an automated teller machine that does not belong to the bank’s network. Subjects: English, United Kingdom, Money & Finance

Editorial Note: Originally a British term, disloyalty fee now also appears in Australia, New Zealand, and Canada.

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Citations: 1999 Vicki Bakhshi Financial Times (Jan. 27) “Top banks join ATM link-up” p. 10: Access to the network will not be free. Many banks will impose a “disloyalty fee” if customers use another ATM machine in the Link network. 2002 CBC (Canada) (Jan. 21) “California cities challenge ATM surcharge”: In Canada, consumer groups have been upset over white label ATMs—ones that aren’t clearly affiliated with a bank. The person is first charged $1 to $2 for using the machine, then another $1 or more from their bank (a disloyalty fee) and then perhaps a third smaller bank charge depending on the kind of account they have. 2006 Jaime Pulfer 680 News (Toronto, Ontario) (Dec. 8) “Canadian ATM’s offer quick cash at steep cost”: Use that bank machine that’s not from your own bank and you’re undoubtedly going to see an immediate service fee plus your own bank dings you another $1.50. That’s what’s known as a disloyalty fee and the banks say it’s justified as they rake in record-breaking profits like the CIBC for example, which reported profits of $2.6 billion for the year.

Posted 12 Dec 06 | Permalink | Tell a Friend