Banks challenge Iowa ATM surcharge ban

Iowa's ban on ATM surcharges is being challenged by five national banks. Filing suit in U.S. District Court in Iowa were Metrobank, Davenport, Iowa; Wells Fargo Bank Iowa, Des Moines; Bank of America, Charlotte, N.C.; Firstar Bank, Cincinnati; and U.S. Bank, Minneapolis.

In the filing, the banks maintained that federal law and regulations pre-empt the Iowa law for national banks. The banks are seeking temporary and permanent injunctions to prohibit the state from enforcing the ban on ATM surcharges.