There you are out at a ball game, gas station, concert, expo, fair or festival and forgot to grab cash at your local bank. Hesitantly, because of the fees, you find an ATM machine, but you need to take out cash in a flash. It seems like ATM fees, Bank fees, Merchant fees and any other fee is getting higher each day simply for using your own money. Presently, as of 2012, the highest ATM fee I've seen has been $3.50. Next is my foreign ATM fee issued by my bank of $2.00, even to inquire about my balance.
A foreign ATM fee is applied by your card issuer, the financial institution/bank, for using an ATM machine that is not directly linked to their system. ATM's can also be owned by people other than banks, who profit from the fees.
Each bank runs independently on what they choose to charge for any services such as: ATM use, excessive withdraws, over the counter transactions, transfers, overdrafts and more. The list of various services can be endless, along with any possible fees for each service.
What are some steps you can take to reduce your fees at the ATM?
1. Consider taking out more money at one time.
Keep the percent you're being charged lower than what you take out by taking out twice as much. For example, if you're taking out $40 and the ATM machine is charging you $3.50 plus your bank is charging $2, you are suffering a loss of almost 15%. This is similarly what cash advance companies or credit card companies charge. The fees are applied per transaction, each time you use an ATM. Perhaps consider taking out $80. You'll most likely spend it on things you need like gas and food.
2. Take out cash at the checkout line
Some banks are moving toward the requirement of customers using their ATM card a minimum of times per month in order to qualify for a perk, such as an earned interest. The bank sees this as a merchant transaction. It's also more ideal to make a charge of a minimum of $10 to reduce additional services fees to all involved to run the transaction. There are merchant fees for running your card through the card reader, which means the store owner or business gets charged, creating a loss for them. If they suffer a loss, they will try to find ways to recover that loss at the customers or employees expense.
3. Use your bank-Ask for perks
Your bank representative may let you know which ATM's in your local area do not charge a fee. Or if you are budget conscious, visit your bank a few days after your paycheck gets deposited and calculate how much you spend on luxuries. Take that amount out in cash. Stash your cash at home and only leave with the amount you may use. Of course, be careful not to take out and store alot at home. Also, talk to your bank to see if there is a reward cash back system for using your ATM.
Carrying a card or carrying cash is a debatable choice on which is safer. Card services offer fraud alerts and limited liability if lost or stolen, of usually up to $500. If you carry a limited amount of cash rather than a card, a thief can not go on a shopping splurge spree with an unknown limit in time and funds. Some Merchant card transactions can be chosen as a credit not a debit, not requiring a pin number.
The charges for accessible conveniences are going higher. Use and find ways to minimize spending more money for spending your own money.
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