Asking if it is a bonus or not if bank refunds $4.00 of another banks's ATM fee of $5.50. Refund is a deposit to the customer's account where the fee is charged.

Reg DD Definitions:

(f) Bonus means a premium, gift, award, or other consideration worth more than $10 (whether in the form of cash, credit, merchandise, or any equivalent) given or offered to a consumer during a year in exchange for opening, maintaining, renewing, or increasing an account balance. The term does not include interest, other consideration worth $10 or less given during a year, the waiver or reduction of a fee, or the absorption of expenses.

I would argue that it's absoption of an expense. Not a bonus. I use to have an account at a large institution that did the same thing.

Argument is bank is refunding of another bank's fee and I found my answer on BankersOnline guru section. Thanks!