Although I think the 11% fees are high I also can see the business behind it.

BATMs are not cheap
Keeping the back end servers up an running has a cost
Hiring people to put in / take out the money has a cost
Since they are still somewhat new customer service people have a cost
And, don't forget PROFIT.....

And this I see as the really annoying part, they probably have to keep the fees equal across the network.

People have gotten used to $4 ATM fees to pull out $40 in cash so this is really not that much worse for smaller transactions.

-Dave