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Banks had no problem slapping a “Teller transaction” fee on withdrawals when ATMs became ubiquitous, to encourage people to use the ATM for free.
That fee is outside my experience. Was that a short-lived thing? Never heard of it, certainly never saw it or heard anyone complain. Weird.
ATMs are not cost free. They’re not merely a kiosk. You have to pay armed men to load/unload them. And not any dude with a pistol will do. I imagine the background check is damned exclusionary.
And then there’s the networking, video and storage, upkeep and updates, all that, it goes on. But of course that still tallies a lower cost than a human, or they wouldn’t do it!