ATM withdrawal limit and transaction charges are two crucial aspects of using an Automated Teller Machine (ATM). ATM service is one of the most convenient and accessible services for people who need cash outside business hours. However, users often face issues with transaction charges and withdrawal limits while making ATM transactions. In this article, we will discuss these two aspects in detail.
Daily ATM withdrawal limit
The daily ATM withdrawal limit varies from bank to bank and differs for every type of cards. This limit is set to ensure the security of cardholders and prevent fraud. The limit also helps banks to manage the cash flow and ATM services effectively. If you exceed the daily withdrawal limit, the transaction may be declined, and you may have to pay an additional charge.
It is essential to know your daily withdrawal limit before making an ATM transaction. If you need to withdraw more than the daily limit, you can make multiple transactions. However, keep in mind that each transaction may attract additional charges. To avoid additional charges, UPI provides a better way to make payments to the merchants.
Can you increase your ATM withdrawal limit?
Yes, you can increase your daily ATM withdrawal limit beyond the existing limit. However, you need to contact your bank and make a request for the same. The bank may ask you to produce additional documents to validate your request. They may also check your account balance and transaction history before approving the request.
If your request is approved, the bank will update the new daily withdrawal limit within 24-48 hours. The new limit will be applicable from the next business day.
Transaction charges
Transaction charges are another aspect that users need to consider while using ATMs. Banks charge a nominal fee for each transaction, including cash withdrawal and balance enquiry. The transaction fee may vary depending on the bank and the type of account. For example, premium account holders may get a limited number of free transactions per month.
The transaction fee also depends on the type of ATM. For example, if you use an ATM that belongs to a different bank than yours, the transaction fee may be higher. The fee may also depend on the location of the ATM. If the ATM is located in a remote or inaccessible area, the transaction fee may be higher than the usual rate.
It is important to check the transaction fee before using the ATM. You can check the fee details on the ATM screen or visit the bank's website to get the updated fee details. Some banks also offer free transactions at selected ATMs or during a specific time.
How to avoid paying ATM charges?
Here are some strategies to avoid paying ATM fees:
- Utilise in-network ATMs: This is the most crucial tip. Banks often charge fees when you use ATMs outside their network. Look for ATMs owned by your bank to avoid these charges. You can usually find in-network ATM locations through your bank's mobile app or website.
- Opt for cash back at retailers: Many stores, like grocery stores and gas stations, offer cash back when you make a purchase with your debit card. This allows you to withdraw cash without incurring ATM fees, as long as the purchase amount covers the desired withdrawal amount and any store-imposed limits.
- Choose an account that reimburses ATM fees: Some banks and credit unions offer checking accounts that reimburse ATM fees, either partially or completely. This can be a good option if you frequently use ATMs outside your bank's network. However, be mindful of any monthly fees associated with such accounts and ensure the reimbursements outweigh the potential charges.
- Plan and minimise ATM withdrawals: Try to withdraw cash less often by planning your cash needs in advance. This can involve budgeting your cash outflows and making use of online payments or digital wallets whenever possible.
- Consider alternatives to cash: Consider using your debit or credit card for purchases instead of relying on cash. This can not only help you avoid ATM fees but also potentially offer rewards and purchase protection benefits.
Conclusion
In conclusion, ATM withdrawal limit and transaction charges are two essential aspects that users need to consider while making ATM transactions. It is essential to know the daily withdrawal limit and transaction fee before making an ATM transaction. If you need to withdraw more than the daily limit, you can contact your bank and request to increase the limit. However, increasing the daily limit may also increase the risk of fraud and unauthorised transactions, so it is advisable to be cautious while using ATMs.
