ATM usage fees
Encyclopedia
ATM usage fees are the fees that many banks and interbank network
s charge for the use of their Automated Teller Machine
s (ATMs). In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users. Many people oppose these fees because ATMs are actually less costly for banks than withdrawals from human tellers.
Two types of consumer charges exist: the surcharge and the foreign fee. The surcharge fee may be imposed by the ATM owner (the deployer or Independent sales organization) and will be charged to the consumer using the machine. The foreign fee or transaction fee is a fee charged by the card issuer (financial institution, stored value provider) to the consumer for conducting a transaction outside of their network of machines in the case of a financial institution.
says this reform will result in benefits to competition and efficiency in the Australian ATM system.
Most banks, (Commonwealth Bank(CBA), ANZ and Westpac
/St.George) levy a $2 "ATM service fee" for withdrawals and balance inquiries at their ATMs by non-customers, NAB
charges $1.50 (50c for an enquiry), Suncorp $2.20 (80c for an enquiry).
Suncorp and BankWest sponsored independent deployers are charging fees from $2, at these early stages $2.20 and $2.50 are not uncommon in pubs and clubs.
Bendigo Bank
charges its customers $1.00 to use another bank's ATM. Bank of Queensland
, BankWest, CBA, Suncorp and Westpac/St.George do not charge any fee to use another bank's ATM.
ING's Orange Everyday reinburses the ATM fee when a withdrawal of $200AUD or more or if a person gets $200 or more cash out via EFTPOS ING will pay you a 50 cent bonus each time.
, Caixa Econômica Federal
, Itaú and Santander
operate their own nationwide ATM networks. These ATMs can be found in many locations such as the bank branch itself, kiosks spread throughout a city or even supermarkets, gas stations, shopping malls and post offices, making it very convenient for the customer to make withdrawals and check balances without incurring any fees. There are also no denial fees (i.e. when trying to withdrawal more money than what's available in your account) as Brazilian businesses cannot charge for services not rendered. However, fees are assessed if there is excessive usage of the ATMs (i.e. one makes more withdrawals than what's allowed by their monthly maintenance fee). Fees and limits can be checked at the FEBRABAN (the Brazilian Banking Federation) website.
Correspondente bancário (Banking agent)
A partnership with store owners, who then use a small wireless ATM (much like a wireless EFT POS) to process transactions for the bank, such as deposits, payments and withdrawals. Use of a banking agent normally does not generate any fees.
Interbank network
Brazil does not have a national interbank network, but ATMs from some banks are connected to other banks' networks. These are usually indicated in the ATM itself. Use of an interbank network does generate fees.
Cash withdrawal with a Visa debit card
Brazilian acquirer Cielo (also known as VisaNet) offers Visa debit card holders an option to withdrawal a small amount of cash (up to R$ 100, approx. US$ 58) when paying for merchandise at any Visa-accepting store. Store owners then hand over the money to the customer at the checkout. While the purchase itself generate fees for the business (like any other credit or debit card transaction), the money withdrawal does not, and is reimbursed in full.
Third-party networks
There are third-party ATM networks such as Banco24Horas that charge fees for use. However, some banks (such as Citibank) will reimburse fees for its customers.
Before the presence of White Label ATMs
, most Canadian customers were only charged the standard Interac
Network Transaction Fee when a customer was using an ATM not provided by the bank that held their account (historically $0.75 CAD
, now $1.50 CAD). As the Interac network was opened up to more Independent sales organizations ("ISO")s and the potential for additional revenue from Service Fees were made available, most banks elected to impose the Service Fee in addition to the revenue that was generated from the Interac fee.
. This may mean national fees become higher. See Single Euro Payments Area.
These rules apply since 1 July 2002. Eurozone
and Swedish
customers are exempt from getting lower international fees outside Eurozone countries, because only fees for euro withdrawals are regulated. Non-Eurozone customers (except Swedish customers) are completely exempt from getting lower international fees, because the regulation only states that international euro withdrawals should be available at the same price as national euro withdrawals (and euro withdrawals are very uncommon in non-Eurozone customers' home countries).
interbank network. The ATM owners do usually join one of the ATM groups that mutually lower or waive fees, so that customers can withdraw free of charge. The most extensive network of ATMs belongs to the savings banks associations ("Sparkassen") with 24,600 ATMS. Most of the private banks are either member of the Cash Group
(7,000 ATMs owned by the major banks) or Cash Pool (2,500 ATMs owned by smaller banks) - they are usually found in city centers. The credit unions ("Volksbanken" and "Raiffeisenbanken") provide around 18,000 ATMs, very often in smaller towns and villages, but less frequently available in the big cities.
Sparkasse Charges pdf (in German)
Commerzbank Charges pdf 1 (in German)
Commerzbank Charges pdf 2 (in German)
, eCard) as well as smaller bank-owned networks. Fees depend on inter-bank agreements and are explicitly stated in card contract. Typically withdrawals from own and allied networks are free while from competitor's machines are subject to constant fee, e.g. 5 PLN. Premium accounts often come without any withdrawal fees, albeit at higher recurring cost. As of 2010 many banks offer optional contracts on "free" withdrawals from any ATM at flat monthly fee, usually priced similar to 1 withdrawal. The maximum amount you can withdraw in one operation is usually about 3000 PLN, varying depending on the type of machine and banknote denominations used.
withdrawals and payments in Portugal are free. Recent European Union directives allowed merchants and banks to charge the customers for transactions, but the government approved a law that forbids charging any kind of fees. Left Block and Portuguese Communist Party
were the political parties that came up with the proposal and the ones more devoted to the idea.
. However, customers are subject to a fee if using a cash machine elsewhere. Some cards from some banks are, however, subject to fees also when used in the eurozone and some Swedish cash machines. Most of these cards are issued by savings banks.
and the UK tabloid
newspapers resulted in issuer fees being removed altogether.
Interchange, the fee which a card issuer pays to the ATM operator to cover the cost of the transaction remains and this cost is absorbed by the card issuer.
In 1999 LINK, the UK ATM network opened membership to so called independent ATM operators, ("IADs"); organisations which do not issue cards. IADs initially focussed on the pay-to-use market, where the customer covers the cost of the transaction directly and this, coupled with a low-cost business model, meant that the number of pay-to-use ATMs rose rapidly, peaking in 2007 at just over 27,000 ATMs.
Most of these machines are in low footfall locations such as convenience stores, garages, nightclubs and pubs. The fee charged in 2005 was usually between £1.00 and £1.50, but occasionally they have been known to charge up to £5 and £10.
Rules regarding signage on pay-to-use machines were introduced in 2005 and enhanced in 2006 and since 2007 the number of pay-to-use cash machines has fallen, by the end of 2010 there were around 21,000.
The large numbers of free-to-use ATMs and the low average number of transactions at pay-to-use machines means that 97% of cash withdrawals in the UK remain free of charge.
: ETC (HSBC
and Hang Seng Bank
only) JETCO
(all remaining banks) and AEON. ATM use is free of charge, except when a card is used outside of its respective home network. When a card is used outside the home network, HKD$15-30 is paid for service charge.
, SHETAB. There are no charges for money withdrawal in this network. Transferring money between two accounts in different banks costs is free , and checking the account balance costs 1000 Rials (US$ 0,10) for other bank's cards. Other services are currently free.
charge from local banks when using an international ATM card, in addition to the originating bank's charges.
http://www.lonelyplanet.com/thorntree/thread.jspa?threadID=1920362
, hosted by a consortium of banks, and MNET
, hosted by MCB Bank Ltd; and all Pakistani banks are members of one or the other switch as per the mandate of the State Bank of Pakistan, the country's central bank. Some banks, like Allied Bank and HSBC
, absorb the costs entirely, and offer their customers totally free withdrawals at all ATMs countrywide, including Azad Jammu and Kashmir; a territory between Pakistan and India whose status is disputed.
Dutch-Bangla Bank has separate agreements with local and international banks where Dutch-Bangla Bank charges BDT 10 (US$0.09) per transaction to member banks. Due to this low amount, member banks often add an extra amount as profit margin.
In 2007, the Reserve Bank of India (RBI), the country's central bank, had issued a directive to all commercial banks to freeze ATM charges and, with effect from 1 April 2009, abolish ATM service charges altogether. Since 2009, customers of any licenced bank are able to use the ATMs of other banks without paying a service charge. Earlier, banks charged between INR 10 and INR 35 per reciprocal transaction.
However, banks can still surcharge for items such as credit card ATM cash advances and at foreign ATMs. In addition, RBI imposes significant foreign exchange restrictions on the use of Indian debit VISA/MasterCard abroad. For example, Indian debit VISA cards are routinely marked "Valid in India and Nepal only" due to the country's restrictive foreign exchange reserve policy.
In the same directive, free mutual ATM usage was reverted to 5 free such transactions per monthly statement cycle; beyond which a cap of INR 20 has been fixed for ATM cards issued to savings bank/term deposit account customers.
However ATM Cards issued to current, cash credit, and unit trust account holders would be charged from the first instance.
cards to their customers, so that any ATM can be used.
Before 1996, foreign ATM fees averaged $1.01 USD nationally, according to a 2001 report from the US-based State Public Interest Research Group.
As banks and third parties realized the profit potential they raised the fees. ATM fees now commonly reach $2.00 (2003), and can be as high as $6.00, or even higher in cash-intensive places like bars and casinos. In cases where fees are paid both to the bank (for using a "foreign" ATM) and the ATM owner (the so-called "surcharge") total withdrawal fees could potentially reach $11. Independent sales organizations ("ISO"s) are the driving force in ATM deployment in the U.S. today representing over 60% of the 396,000 ATMs nationwide. Some have expressed concerns that the U.S. market is becoming too saturated, spreading the resulting fee pool too thin, which may result in a future net decrease in the number of machines. Other media reports indicate that growth in ATM usage has decreased, possibly in relation to the amount of fees imposed by banks.
Only some fees charged by ATMs are advertised at the point of transaction. This is more of a cautionary statement, as ATMs are required by law to inform users of the surcharge fees that the machine will charge the user. This information may come in the push through menu or it may be on a sticker on the machine. However, the ATM card holder's own bank may charge a "foreign ATM network" fee to the card holder for using an ATM that is not owned and operated by the card holder's own bank. Since this charge is not assessed by the machine or the owner of the machine, it is usually not advertised at the time and place of the transaction. Thus, it becomes the responsibility of the card holder to be aware of the details of their own bank's fee structure, which may also vary from state to state, to determine the total cost of an ATM transaction. In addition, the "foreign ATM network" fee may be different if using an ATM outside the U.S. versus inside the U.S.
A new charge that has come into the marketplace is the "Denial Fee", where a customer is charged a fee for attempting to withdraw more money than they are either allowed through their daily withdrawal limit or by having insufficient funds in their account.
While many consumers are faced with multiple fees as described above, a number of standalone and internet banks, such as USAA
, Capital One
and Ally
, do not charge their customers for using another ATM and they also provide reimbursement, nationwide, of another ATM's fee. Thus, customers at some banks in the US can avoid ATM fees altogether. Another popular way to avoid paying ATM fees is to make a cashback
purchase at a retail store: many retailers will allow a customer who is paying with a debit card to withdraw more than the total due the retailer and get back the difference in cash.
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks....
s charge for the use of their Automated Teller Machine
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s (ATMs). In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users. Many people oppose these fees because ATMs are actually less costly for banks than withdrawals from human tellers.
Two types of consumer charges exist: the surcharge and the foreign fee. The surcharge fee may be imposed by the ATM owner (the deployer or Independent sales organization) and will be charged to the consumer using the machine. The foreign fee or transaction fee is a fee charged by the card issuer (financial institution, stored value provider) to the consumer for conducting a transaction outside of their network of machines in the case of a financial institution.
Australia
On 3 March 2009 Direct Charging (surcharging) on Australia’s ATM networks was introduced. The Reserve Bank of AustraliaReserve Bank of Australia
The Reserve Bank of Australia came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank to it....
says this reform will result in benefits to competition and efficiency in the Australian ATM system.
Most banks, (Commonwealth Bank(CBA), ANZ and Westpac
Westpac
Westpac , is a multinational financial services, one of the Australian "big four" banks and the second-largest bank in New Zealand....
/St.George) levy a $2 "ATM service fee" for withdrawals and balance inquiries at their ATMs by non-customers, NAB
National Australia Bank
National Australia Bank is one of the four largest financial institutions in Australia in terms of market capitalisation and customers. NAB is ranked 17th largest bank in the world measured by market capitalisation...
charges $1.50 (50c for an enquiry), Suncorp $2.20 (80c for an enquiry).
Suncorp and BankWest sponsored independent deployers are charging fees from $2, at these early stages $2.20 and $2.50 are not uncommon in pubs and clubs.
Bendigo Bank
Bendigo Bank
Bendigo Bank is an Australian financial institution, operating primarily in retail banking. The company merged with Adelaide Bank in November 2007, with shareholders voting in March 2008 to change the merged company’s name to Bendigo and Adelaide Bank Limited.Before the merger, Bendigo Bank...
charges its customers $1.00 to use another bank's ATM. Bank of Queensland
Bank of Queensland
Bank of Queensland , one of the oldest financial institutions in Queensland, Australia, is a retail bank with a network of almost 270 branches, including 152 in Queensland, 52 in New South Wales, 23 in Victoria and 34 in Western Australia. Following the Home Building Society and Pioneer mergers,...
, BankWest, CBA, Suncorp and Westpac/St.George do not charge any fee to use another bank's ATM.
ING's Orange Everyday reinburses the ATM fee when a withdrawal of $200AUD or more or if a person gets $200 or more cash out via EFTPOS ING will pay you a 50 cent bonus each time.
Brazil
In Brazil, banks such as Bradesco, Banco do BrasilBanco do Brasil
Banco do Brasil S.A. is the largest Brazilian and Latin American bank by assets, and the third by market value. The bank, headquartered in Brasília, was founded in 1808 and is the oldest active bank in Brazil — and one of the oldest financial institutions in the world.Banco do Brasil is controlled...
, Caixa Econômica Federal
Caixa Econômica Federal
Caixa Econômica Federal , also referred to as Caixa or CEF, is a Brazilian bank. It is the largest government-owned financial institution in Latin America. It is the largest bank in Brazil and in Latin America by assets....
, Itaú and Santander
Grupo Santander
The Santander Group is a banking group centered on Banco Santander, S.A., the largest bank in the Eurozone and one of the largest banks in the world in terms of market capitalisation. According to Forbes Magazine Global 2000, it is the 13th largest public company in the world...
operate their own nationwide ATM networks. These ATMs can be found in many locations such as the bank branch itself, kiosks spread throughout a city or even supermarkets, gas stations, shopping malls and post offices, making it very convenient for the customer to make withdrawals and check balances without incurring any fees. There are also no denial fees (i.e. when trying to withdrawal more money than what's available in your account) as Brazilian businesses cannot charge for services not rendered. However, fees are assessed if there is excessive usage of the ATMs (i.e. one makes more withdrawals than what's allowed by their monthly maintenance fee). Fees and limits can be checked at the FEBRABAN (the Brazilian Banking Federation) website.
Third-party networks
Brazilian banks have several partnerships in place in order to extend their coverage.Correspondente bancário (Banking agent)
A partnership with store owners, who then use a small wireless ATM (much like a wireless EFT POS) to process transactions for the bank, such as deposits, payments and withdrawals. Use of a banking agent normally does not generate any fees.
Interbank network
Brazil does not have a national interbank network, but ATMs from some banks are connected to other banks' networks. These are usually indicated in the ATM itself. Use of an interbank network does generate fees.
Cash withdrawal with a Visa debit card
Brazilian acquirer Cielo (also known as VisaNet) offers Visa debit card holders an option to withdrawal a small amount of cash (up to R$ 100, approx. US$ 58) when paying for merchandise at any Visa-accepting store. Store owners then hand over the money to the customer at the checkout. While the purchase itself generate fees for the business (like any other credit or debit card transaction), the money withdrawal does not, and is reimbursed in full.
Third-party networks
There are third-party ATM networks such as Banco24Horas that charge fees for use. However, some banks (such as Citibank) will reimburse fees for its customers.
Canada
A short description of the fee structure one experiences while using Canadian ATMs can be found at the Interac website.Before the presence of White Label ATMs
White Label ATMs in Canada
White Label ABMs in Canada provide alternative source of cash dispensing vis-à-vis traditional automatic banking machines from banks.-Background:...
, most Canadian customers were only charged the standard Interac
Interac
Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...
Network Transaction Fee when a customer was using an ATM not provided by the bank that held their account (historically $0.75 CAD
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
, now $1.50 CAD). As the Interac network was opened up to more Independent sales organizations ("ISO")s and the potential for additional revenue from Service Fees were made available, most banks elected to impose the Service Fee in addition to the revenue that was generated from the Interac fee.
Neutral Consumer Information
The Government of Canada maintains a chart of the fees typically charged for use of ATMs in Canada.European Union
Rules are being introduced that will force banks to levy equal fees for customers of all banks in the European UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. This may mean national fees become higher. See Single Euro Payments Area.
These rules apply since 1 July 2002. Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
and Swedish
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
customers are exempt from getting lower international fees outside Eurozone countries, because only fees for euro withdrawals are regulated. Non-Eurozone customers (except Swedish customers) are completely exempt from getting lower international fees, because the regulation only states that international euro withdrawals should be available at the same price as national euro withdrawals (and euro withdrawals are very uncommon in non-Eurozone customers' home countries).
Finland
Cash withdrawals are free for any owner of a Finnish bank card or Visa Electron cards on ATM brand "Otto." which is the largest ATM network in Finland. There are smaller rivals which have fees. "Otto." ATMs accept also Visa, MasterCard, American Express and Diners Club credit cards. They also belong to Maestro, Cirrus and PLUS networks. Fees depend on card issuer.Germany
German banks charge fees for withdrawals at another bank's ATM. Usual fees are 4-5 EUR. All ATMs are connected to the national GirocardGirocard
Girocard is an interbank network and debit card service connecting virtually all German ATMs and banks. It is based on standards and agreements developed by Central Credit Committee....
interbank network. The ATM owners do usually join one of the ATM groups that mutually lower or waive fees, so that customers can withdraw free of charge. The most extensive network of ATMs belongs to the savings banks associations ("Sparkassen") with 24,600 ATMS. Most of the private banks are either member of the Cash Group
Cash Group
Cash Group is a cooperation of the four largest German private banks and their subsidiaries, in which they mutually waive ATM usage fees for their customers. It is not an interbank network but uses the pre-existing girocard network...
(7,000 ATMs owned by the major banks) or Cash Pool (2,500 ATMs owned by smaller banks) - they are usually found in city centers. The credit unions ("Volksbanken" and "Raiffeisenbanken") provide around 18,000 ATMs, very often in smaller towns and villages, but less frequently available in the big cities.
Sparkasse Charges pdf (in German)
Commerzbank Charges pdf 1 (in German)
Commerzbank Charges pdf 2 (in German)
Netherlands
Cash withdrawals are usually free for an owner of a Dutch debit card, both within The Netherlands and in other places of the European Union. Cash withdrawals from another bank in The Netherlands is limited to a maximum of once a day and a lower limit per transaction. The one transaction per day limit generally does not apply to withdrawals outside the country. You may withdraw up to 2300 euro per cashpoint.Poland
There are few but extensive independent ATM operators in Poland (e.g. EuronetEuronet Worldwide
Euronet Worldwide, EEFT , is a global provider of electronic payment services. It offers automated teller machines , point of sale services, credit/debit card services, and other electronic financial services...
, eCard) as well as smaller bank-owned networks. Fees depend on inter-bank agreements and are explicitly stated in card contract. Typically withdrawals from own and allied networks are free while from competitor's machines are subject to constant fee, e.g. 5 PLN. Premium accounts often come without any withdrawal fees, albeit at higher recurring cost. As of 2010 many banks offer optional contracts on "free" withdrawals from any ATM at flat monthly fee, usually priced similar to 1 withdrawal. The maximum amount you can withdraw in one operation is usually about 3000 PLN, varying depending on the type of machine and banknote denominations used.
Portugal
All MultibancoMultibanco
Multibanco is an interbank network in Portugal owned and operated by Sociedade Interbancaria de Serviços S.A., or SIBS, that links the ATMs of 27 banks in Portugal, totaling 11,208 machines as of October 2006. The bank members of Multibanco control the SIBS...
withdrawals and payments in Portugal are free. Recent European Union directives allowed merchants and banks to charge the customers for transactions, but the government approved a law that forbids charging any kind of fees. Left Block and Portuguese Communist Party
Communist party
A political party described as a Communist party includes those that advocate the application of the social principles of communism through a communist form of government...
were the political parties that came up with the proposal and the ones more devoted to the idea.
Spain
Banks that are not associated with the user's bank will usually charge a small fee of €0.50 per withdrawal of cash from the machine. Other services such as top-up of mobile phones are usually free.Sweden
In Sweden, most banks issue debit cards for an annual or monthly fee which includes free withdrawals in Sweden and within the eurozoneEurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
. However, customers are subject to a fee if using a cash machine elsewhere. Some cards from some banks are, however, subject to fees also when used in the eurozone and some Swedish cash machines. Most of these cards are issued by savings banks.
United Kingdom
During the 1980s the number of banks and building societies charging issuer fees (i.e. charging fees to their own customers when they used another ATM operator's ATMs), gradually increased. However, in 1990 Barclays announced they were introducing an acquier fee for all non-Barclays card-holders at their ATMs. This would result in "double charging", where the customer was charged by both their card issuer and the ATM operator. Public reaction against this proposal was very strong and a campaign launched by Nationwide Building SocietyNationwide Building Society
Nationwide Building Society is a British building society, and is the largest in the world. It has its headquarters in Swindon, England, and maintains significant administration centres in Bournemouth and Northampton...
and the UK tabloid
Tabloid journalism
Tabloid journalism tends to emphasize topics such as sensational crime stories, astrology, gossip columns about the personal lives of celebrities and sports stars, and junk food news...
newspapers resulted in issuer fees being removed altogether.
Interchange, the fee which a card issuer pays to the ATM operator to cover the cost of the transaction remains and this cost is absorbed by the card issuer.
In 1999 LINK, the UK ATM network opened membership to so called independent ATM operators, ("IADs"); organisations which do not issue cards. IADs initially focussed on the pay-to-use market, where the customer covers the cost of the transaction directly and this, coupled with a low-cost business model, meant that the number of pay-to-use ATMs rose rapidly, peaking in 2007 at just over 27,000 ATMs.
Most of these machines are in low footfall locations such as convenience stores, garages, nightclubs and pubs. The fee charged in 2005 was usually between £1.00 and £1.50, but occasionally they have been known to charge up to £5 and £10.
Rules regarding signage on pay-to-use machines were introduced in 2005 and enhanced in 2006 and since 2007 the number of pay-to-use cash machines has fallen, by the end of 2010 there were around 21,000.
The large numbers of free-to-use ATMs and the low average number of transactions at pay-to-use machines means that 97% of cash withdrawals in the UK remain free of charge.
Hong Kong
There are three ATM networks in Hong KongHong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
: ETC (HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
and Hang Seng Bank
Hang Seng Bank
Hang Seng Bank Limited is the second largest bank in Hong Kong. It is a listed company but it is majority owned by the HSBC Group via The Hongkong and Shanghai Banking Corporation. Hang Seng is also one of the constituent shares of the Hang Seng Index...
only) JETCO
JETCO
JETCO is the biggest network of automatic teller machines in Hong Kong and Macau, with nearly 1,700 cash machines.-History:...
(all remaining banks) and AEON. ATM use is free of charge, except when a card is used outside of its respective home network. When a card is used outside the home network, HKD$15-30 is paid for service charge.
Iran
There is only one ATM network in IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
, SHETAB. There are no charges for money withdrawal in this network. Transferring money between two accounts in different banks costs is free , and checking the account balance costs 1000 Rials (US$ 0,10) for other bank's cards. Other services are currently free.
Indonesia
In Indonesia banks usually charge a fee of Rp. 5000 (USD 60 cents) per interbank transfer via ATM bersama or Rp. 3000 to Rp. 5000 (USD 33-60 cents) for withdrawal of cash from a different bank's ATM.Thailand
In Thailand, there's no fee for domestic same-bank transaction. However, for inter-bank most of the banks will allow you to have 5 withdrawal or balance inquiry transactions for free , then charges you 5 THB per additional transactions. For foreign card, the standard fee is 150 THB (USD 5.00 (approx)). However, there's an exception on the ATMs from AEON (Financial Servicde company) that will not charge the additional fee on the foreign card. You can usually find those ATMs in the major department stores.Philippines
In the Philippines, there is a 200 Philippine PesoPhilippine peso
The peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...
charge from local banks when using an international ATM card, in addition to the originating bank's charges.
http://www.lonelyplanet.com/thorntree/thread.jspa?threadID=1920362
Sri Lanka
In Sri Lanka banks usually charge a fee of LKR (Sri Lankan Rupees) 50.00 (USD 0.40 to 0.60) per non user's bank withdrawal of cash from the machine.Pakistan
In Pakistan banks usually charge a fee of PKR 10 to PKR 35 (USD 0.08 to USD 0.32) per non user's ATM cash withdrawal. These fees are levied chiefly to offset banks' own costs at par only, without any profit margin whatsoever. There are two ATM switches operational in the country, 1LINK1LINK
1LINK Limited is a consortium of major banks that own and operate the largest representative shared financial services network in Pakistan.The 1LINK brand has grown as their number of member banks increases....
, hosted by a consortium of banks, and MNET
MNET
MNET Services Private Limited is a Pakistani operator of inter-bank connectivity platform for online financial transaction processing and offers a managed services portfolio that includes card personalization & management, mobile payment services and ATM & POS controller hosting.-External links:*...
, hosted by MCB Bank Ltd; and all Pakistani banks are members of one or the other switch as per the mandate of the State Bank of Pakistan, the country's central bank. Some banks, like Allied Bank and HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
, absorb the costs entirely, and offer their customers totally free withdrawals at all ATMs countrywide, including Azad Jammu and Kashmir; a territory between Pakistan and India whose status is disputed.
Bangladesh
There are multiple ATM networks in Bangladesh. The market leader, Dutch-Bangla Bank has the largest ATM network and it is also the network with the most member banks. Dutch-Bangla Bank customers are not charged for ATM transactions.Dutch-Bangla Bank has separate agreements with local and international banks where Dutch-Bangla Bank charges BDT 10 (US$0.09) per transaction to member banks. Due to this low amount, member banks often add an extra amount as profit margin.
India
In India, ATM annual fees( Rs. 100 in Govt. bank and Rs. 500 in private bank).In 2007, the Reserve Bank of India (RBI), the country's central bank, had issued a directive to all commercial banks to freeze ATM charges and, with effect from 1 April 2009, abolish ATM service charges altogether. Since 2009, customers of any licenced bank are able to use the ATMs of other banks without paying a service charge. Earlier, banks charged between INR 10 and INR 35 per reciprocal transaction.
However, banks can still surcharge for items such as credit card ATM cash advances and at foreign ATMs. In addition, RBI imposes significant foreign exchange restrictions on the use of Indian debit VISA/MasterCard abroad. For example, Indian debit VISA cards are routinely marked "Valid in India and Nepal only" due to the country's restrictive foreign exchange reserve policy.
In the same directive, free mutual ATM usage was reverted to 5 free such transactions per monthly statement cycle; beyond which a cap of INR 20 has been fixed for ATM cards issued to savings bank/term deposit account customers.
However ATM Cards issued to current, cash credit, and unit trust account holders would be charged from the first instance.
Switzerland
The usual fee for a withdrawal at a "foreign" bank's ATM is CHF 2. Sometimes, banks provide the cardholder with usually 10, 12 or 24 free withdrawals, especially if the bank is a small one, with few ATMs. All Swiss banks hand out MaestroMaestro (debit card)
Maestro is a multi-national debit card service owned by MasterCard, and was founded in 1990. Maestro cards are obtained from associate banks and can be linked to the card holder's current account, or they can be prepaid cards...
cards to their customers, so that any ATM can be used.
United States
Prior to 1988, there was no surcharging of cardholders by ATM owners in the U.S. In 1988 Valley Bank of Nevada began surcharging "foreign cardholders" (meaning holders of ATM cards not issued by Valley Bank) for withdrawals at Valley Bank ATMs located in/near Las Vegas casinos. Eventually, various regional ATM Networks, and ultimately the national networks, Plus and Cirrus, permitted ATM surcharging.Before 1996, foreign ATM fees averaged $1.01 USD nationally, according to a 2001 report from the US-based State Public Interest Research Group.
As banks and third parties realized the profit potential they raised the fees. ATM fees now commonly reach $2.00 (2003), and can be as high as $6.00, or even higher in cash-intensive places like bars and casinos. In cases where fees are paid both to the bank (for using a "foreign" ATM) and the ATM owner (the so-called "surcharge") total withdrawal fees could potentially reach $11. Independent sales organizations ("ISO"s) are the driving force in ATM deployment in the U.S. today representing over 60% of the 396,000 ATMs nationwide. Some have expressed concerns that the U.S. market is becoming too saturated, spreading the resulting fee pool too thin, which may result in a future net decrease in the number of machines. Other media reports indicate that growth in ATM usage has decreased, possibly in relation to the amount of fees imposed by banks.
Only some fees charged by ATMs are advertised at the point of transaction. This is more of a cautionary statement, as ATMs are required by law to inform users of the surcharge fees that the machine will charge the user. This information may come in the push through menu or it may be on a sticker on the machine. However, the ATM card holder's own bank may charge a "foreign ATM network" fee to the card holder for using an ATM that is not owned and operated by the card holder's own bank. Since this charge is not assessed by the machine or the owner of the machine, it is usually not advertised at the time and place of the transaction. Thus, it becomes the responsibility of the card holder to be aware of the details of their own bank's fee structure, which may also vary from state to state, to determine the total cost of an ATM transaction. In addition, the "foreign ATM network" fee may be different if using an ATM outside the U.S. versus inside the U.S.
A new charge that has come into the marketplace is the "Denial Fee", where a customer is charged a fee for attempting to withdraw more money than they are either allowed through their daily withdrawal limit or by having insufficient funds in their account.
While many consumers are faced with multiple fees as described above, a number of standalone and internet banks, such as USAA
USAA
United Services Automobile Association is a Fortune 500 financial services company offering banking, investing, and insurance to people and families that serve, or served, in the United States military. In 2011, there were 8.4 million members. The company reported a net worth of $19.3 billion in...
, Capital One
Capital One
Capital One Financial Corp. is a U.S.-based bank holding company specializing in credit cards, home loans, auto loans, banking and savings products...
and Ally
Ally Bank
Ally Bank is a unit of Ally Financial, headquartered in Detroit, Michigan, which became a bank holding company in December 2008. The bank is based at 6985 Union Park Center, Midvale, Utah, and is Federal Deposit Insurance Corporation insured, since August 2, 2004...
, do not charge their customers for using another ATM and they also provide reimbursement, nationwide, of another ATM's fee. Thus, customers at some banks in the US can avoid ATM fees altogether. Another popular way to avoid paying ATM fees is to make a cashback
Debit card cashback
Debit card cashback is a service offered to retail customers whereby an amount is added to the total purchase price of a transaction paid by debit card and the customer receives that amount in cash along with the purchase. For example, a customer purchasing $18.99 worth of goods might ask for...
purchase at a retail store: many retailers will allow a customer who is paying with a debit card to withdraw more than the total due the retailer and get back the difference in cash.
See also
- ATM cardATM cardAn ATM card is a card issued by a bank, credit union or building society that can be used at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks.Some ATM cards can also be used:* at a branch, as identification for in-person...
- Financial transactionFinancial transactionA financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
- Global ATM AllianceGlobal ATM AllianceThe Global ATM Alliance is a joint venture of several major international banks that allows customers of their banks to use their ATM card or debit card at another bank within the Global ATM Alliance with no International ATM Access fees. However, other fees, such as an international transaction or...
- Point of salePoint of salePoint of sale or checkout is the location where a transaction occurs...
- Unavailable funds feeUnavailable funds feeUnavailable funds fee is a penalty fee applied by a bank on a transaction account when a transaction is posted to an account that has negative available balance even though it has a positive physical balance...