Hidden ATM Fees To Watch Out For and How To Avoid Them

What is the worst feeling ever? Having to pay for a thing that you could have gotten for free! Yes, almost every American, every year, gets charged with millions of dollars just for using an ATM from a different bank. Though the amount they charge may seem to be a negligent amount, but when it adds up a couple of times, it can be a significant amount. If you are withdrawing money from ATM, then you need to be aware of it. These are the hidden fees that you need to watch out for and avoid it as much as possible. What are these charges? How to avoid them? We have all the answers for you below. Read on.

HIDDEN FEES OF ATM

Are you withdrawing money from ATM almost every now and then? Well, you may not be aware of the additional charges that they are charging you. There are two types of fees that you may have to pay for withdrawing money from an ATM. If you are not using an ATM that is owned by your bank, then you need to pay these charges. These are called hidden charges because they are not openly and specifically mentioned when you are withdrawing. But you need to know about these fees.

The first of the two hidden fees is the surcharge fee which is charged by the ATM operators. The second fee is the out-of-network ATM fee. On an average the amounts charged at an ATM are $2.24 as surcharge fee and $2.45 as the out-of-network fee. Hence, you can be charged a combined total of about $4.69 on an average at the ATM. This happens every time you choose to withdraw money from an ATM that doesn’t belong to your bank’s network.

Over 10 largest banks in America charge these two fees from the users from other bank’s network. According to the operators, these fees are charged for covering the cost of maintenance and operation of the machine. But the reality is different. These are hidden charges that are charged by the ATM operators to make some exponential profit from the ATM users.

HOW TO AVOID THESE CHARGES?

While you cannot stop using the ATM for withdrawing cash, you need to need to know how you can avoid these fees charged by the ATM operators or banks. There are many strategies that you can apply in order to avoid these charges. Here are some of the ways:

1. USE ATM OPERATED BY YOUR BANK

As mentioned above, the surcharge fee and out-of-network fee are only charged when you are using an ATM that doesn’t belong to your bank. So, whenever you withdraw money from an ATM out of your bank’s network, the ATM operator as well as your bank will charge you. Hence, the best way to avoid these charges is by using the ATM that belongs to your bank. Then, you do not have to pay any extra fees or charges while withdrawing money.

2. FEE-FREE ATMS

The next thing that you can do is to withdraw money from an ATM that doesn’t charge any extra fees. It is understandable that finding an ATM that belongs to your bank everywhere you go is not possible. Hence, you need to look for fee-free ATMs. Yes, they are available and you need to find out which ATM operators do not charge any fees for withdrawing money. If not, at least, you can find an ATM that charges the minimum and least amount.

3. KEEP CASH IN HAND

The best way to avoid paying extra charges to withdraw cash from an ATM is to keep your hands full with cash. Yes, finding an ATM that belongs to your bank in an unknown area can be tough. Hence, you can keep some cash with you from before to avoid this situation. It is better than paying about $5 every time you withdraw some cash. Though the amount may not seem too much, but just imagine paying $5 every week. It is about $20 a month. You can avoid paying these fees and save the same.

4. USE TECHNOLOGY

Thanks to the latest technologies and smartphones, paying has become quite easy. Whether you want to pay an individual or at shop, restaurant and café, you can simply use the UPI option. You can pay someone directly into their bank account by simply scanning a QR code. Also, there are plenty of online wallets like PayPal, Apple Pay and more that can help you to pay or receive money more efficiently. This way, you can simply avoid withdrawing cash from the ATM and paying those hefty surcharge and other fees.

5. PAY WITH CARDS

Most of the shops, restaurants, cafes etc. have facilities to swipe card for the payment. If you do not find any ATM nearby that belongs to your bank, then it is best to pay by cards to avoid the extra ATM fees. Paying via a debit card can help you in avoiding those fees while providing an easy access to the money in your account. As more and more people are using the cashless modes to pay money, shops and merchants are taking all possible steps to make sure the customers can pay money via card, e-wallet and more.

6. WITHDRAW MAXIMUM AMOUNT ALLOWED

If you have no other way but to withdraw money from an ATM that doesn’t belong to your bank, then the best way is to withdraw maximum amount that is allowed to withdraw. No matter what the amount is, you will still be charged with the fixed surcharge fee and out-of-network fee. Hence, you can avoid paying these fees repeatedly if you have a lot of cash in your hand.

TO CONCLUDE

Now that you are aware of the fees that an ATM charges, it is high time for you to make sure that you avoid them. If you have a checking account in a bank that charges you even if you use their ATM, it is time to change the bank. Also, you can use the ATM locator of your bank to find out the ATM nearby your location that belongs to your bank. Make sure to apply these tactics to avoid those hidden fees as much as possible.