ATMs allow customers to withdraw money, view account balances, transfer money, and sometimes make deposits. They can be found in various locations, and often charge fees for withdrawals. Cash advances can also be obtained with credit cards, but interest accrues. Customers can avoid fees by using their own bank’s ATM or using their ATM card as a form of payment at commercial establishments. Some stores allow cash refunds at the point of sale, but with limits.
An automated teller machine (ATM) allows a bank customer to withdraw money without having to visit their financial institution. When using an ATM or debit card machine, a customer inserts a card into the machine, enters a preselected personal identification number (PIN), and can perform a variety of banking operations. The consumer can withdraw cash, view an account balance, transfer money between accounts, and sometimes make deposits. At most ATMs, the customer can also get cash advances from one of the major credit card accounts.
Usually, a person does not have to travel far to find an ATM. Often one may be located in a bank, supermarket, pharmacy, hotel lobby, airport, convenience store, hospital, mall, or anywhere someone needs access to quick cash. When a checking or savings account is accessed using an ATM, the money withdrawn is automatically deducted from an individual’s respective account.
Cash advances can also be obtained with credit cards in many cases. When used in this way, the charge usually appears on the next month’s credit card bill. In this case, the consumer can often repay the borrowed money over a period of several months. However, the disadvantage of this method is that interest accrues as a result of the transaction. Many times, the interest rate charged is higher than when a consumer makes a standard purchase at the point of sale.
An ATM often charges a flat fee for the withdrawal of funds. This is especially true if the transaction is made at an ATM owned by a different financial institution than the one that issued the debit card. The cost varies, but is usually no more than a few dollars. The consumer’s own bank may also charge a separate fee for this type of transaction.
To avoid these additional fees, customers can often visit an ATM located outside of their own bank. This is a service generally provided free of charge to consumers. Alternatively, many commercial establishments accept ATM cards as a form of payment. When used in this way, there is rarely a fee.
At the point of sale, the consumer can sometimes request a cash refund when making a purchase. This means that in addition to deducting money from the sale, an individual can request additional funds from the merchant. However, many stores have set limits on the amount of cash a consumer can request at one time. This amount is added to the purchase price and deducted from the bank account used for the transaction.
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