While most of us enjoy the convenience of withdrawing cash from an ATM when we need it, many such machines have begun charging significant fees for their use unless you happen to be a customer of their associated banks. For example, I noticed that Bank of America has recently raised their fees for each ATM transaction made by non-customers from $2 to $3. While this may not seem like much, it can add up over time and become an annoying extra expense to keep track of when trying to manage your finances.
Fortunately, there are an increasing number of banks that will reimburse such fees to your account even if you use non-affiliated ATMs. One such institution is USAA Federal Savings Bank. I have had an account with USAA for over three years now, and know from personal experience that they always rebate ATM surcharges at the end of each month regardless of which particular machine you use. The only caveat is that the rebate is limited to a maximum of 10 withdrawals or $15 per month, whichever happens first. However, I have never used ATMs frequently enough to exceed these limits, so this has never been a problem.
In this article, I will provide a list of other banks that either offer no fee ATM transactions at their machines or reimburse fees like USAA does. I will also answer some ATM-related questions that you may have, and then finish the article with a few tips on how to avoid ATM fees altogether.
What does ATM stand for?
ATM stands for Automated Teller Machine, also known as Automatic Teller Machine. It is a computerized bank terminal that is designed to accept cards with your account number and PIN (Personal Identification Number) on them, which are usually encoded with a magnetic stripe. Such machines have the ability to dispense cash, take deposits, and perform a few other basic banking functions such as transfers between accounts or information about current balances. Although the term “ATM machine” is actually redundant, I have used it a few times in this article because it appears so frequently in search queries.
What is the total number of ATM machines in the United States?
According to the American Bankers Association, there were approximately 395,000 ATMs in the United States as of 2006. In that year, they processed over 10.1 billion transactions.
Why do ATM machines eat your card?
Occasionally, ATMs have been known to “eat” cards in certain instances, which understandably frustrates their users. This usually happens for one of the following reasons:
1. Some ATMs are programmed to seize the card if the user enters the PIN incorrectly three times in a row (the dreaded “three strikes” rule).
2. In some locations, the ATM will eat your card if you do not retrieve it within a certain time period after fully completing a transaction (15 seconds for some machines, but this may vary).
3. In a few cases, cards have been eaten because the user had insufficient funds in the account or was trying to initiate a fraudulent transaction of some sort.
4. Sometimes the ATM simply malfunctions and keeps the card when it is not supposed to, in which case you can attempt to get it back by notifying the relevant bank. I read about one case where this happened and the bank personnel eventually had to pry the ATM open to get the card back, after which the renegade machine continued to eat the cards of subsequent customers.
What is an ATM PIN reversal? Is this a scam?
This is a concept that has been propagated by forwarded emails claiming that you can enter your PIN (Personal Identification Number) backwards at an ATM machine in order to secretly summon police. Supposedly this can help you in the event that you are being threatened by a robber while in the process of withdrawing cash. However, this idea was never actually implemented by any banks, although there have been a few proposed bills in state legislatures referring to the idea of such a system. While technically not a scam, it has become known as an urban legend that is not really true. Both scopes.com and scambusters.org have confirmed that emails claiming that this is true are bogus.
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