When you use an ATM, most of the time it isn't free unless you are at your own bank. Many people don't' realize that there are different types of fees linked to ATM transactions.
A surcharge fee, charged by the ATM owner, is the first type. Surcharge fees can cost as much as $3.00 per transaction. Members of a financial institution may also charge you money, that is the other type of fee.
When someone uses an ATM from a bank that is not their own, this is a transaction fee. This is a penalty that someone pays when they use a different bank's ATM.
Each fee is only a couple dollars. This isn't that much on its own, but they do add up over time. Here are some ways that you can avoid or at least reduce the ATM fees you are paying.
Not all banks charge fees. You can always start by looking for banks that don't charge you fees when you use a different bank's ATM fee. This may reduce your surcharge fees each month by as much as half.
Other banks will actually pay you back, if you use an ATM that assesses a surcharge fee. In fact, banks will sometimes pay you back if you are in a remote area and use an ATM that is operated by a separate owner.
A debit card also helps you to avoid transaction fees. A debit card can be used at an ATM to pull out cash, but it also works like a credit card at stores and can be used like a regular credit card at point of sale. The neat thing is, though, that it isn't a credit card - the money comes right out of your checking account. This means you don't need to go to an ATM.
If you figure how much cash you will need, this also helps you avoid unnecessary ATM fees and charges. You can then to go the ATM or to the bank once and take out what you need, and not have to go back for more. The goal is to make larger withdrawals but make them less frequently.
A surcharge fee, charged by the ATM owner, is the first type. Surcharge fees can cost as much as $3.00 per transaction. Members of a financial institution may also charge you money, that is the other type of fee.
When someone uses an ATM from a bank that is not their own, this is a transaction fee. This is a penalty that someone pays when they use a different bank's ATM.
Each fee is only a couple dollars. This isn't that much on its own, but they do add up over time. Here are some ways that you can avoid or at least reduce the ATM fees you are paying.
Not all banks charge fees. You can always start by looking for banks that don't charge you fees when you use a different bank's ATM fee. This may reduce your surcharge fees each month by as much as half.
Other banks will actually pay you back, if you use an ATM that assesses a surcharge fee. In fact, banks will sometimes pay you back if you are in a remote area and use an ATM that is operated by a separate owner.
A debit card also helps you to avoid transaction fees. A debit card can be used at an ATM to pull out cash, but it also works like a credit card at stores and can be used like a regular credit card at point of sale. The neat thing is, though, that it isn't a credit card - the money comes right out of your checking account. This means you don't need to go to an ATM.
If you figure how much cash you will need, this also helps you avoid unnecessary ATM fees and charges. You can then to go the ATM or to the bank once and take out what you need, and not have to go back for more. The goal is to make larger withdrawals but make them less frequently.
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