ATM usage fees
ATM usage fees are the fees that many banks and interbank networks charge for the use of their Automated Teller Machines (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.
Australia [ edit ]
On 3 March 2009 Direct Charging (surcharging) on Australia’s ATM networks was introduced. The Reserve Bank of Australia says this reform will result in benefits to competition and efficiency in the Australian ATM system. [ 1 ]
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. CBA, Suncorp and Westpac/St.George do not charge any fee to use another bank's ATM. BankWest [ 2 ] does not charge users for access to foreign ATMs.
ING Group operates as ING Direct in Australia and has accounts that reimburse any domestic ATM fee provided that $1,000 is deposited into the account (i.e. salary) every month. [ 3 ]
Brazil [ edit ]
In Brazil, banks such as Bradesco. Banco do Brasil. Caixa Economica Federal. Itau 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 .
Third-party networks [ edit ]
Brazilian banks have several partnerships in place in order to extend their coverage.
Correspondente bancario (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.
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.
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 [ edit ]
A short description of the fee structure one experiences while using Canadian ATMs can be found at the Interac website, [ 4 ] while The Financial Consumer Agency of Canada maintains a chart of the fees typically charged for use of ATMs in Canada. [ 5 ]
Interac ATMs [ edit ]
Most Canadian financial institutions are members of the Interac Association. a multi-bank ATM network founded by Royal Bank of Canada. CIBC. Scotiabank. Toronto-Dominion Bank. and Desjardins Group in 1984. 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. [ 6 ]
The Exchange [ edit ]
European Union [ edit ]
Rules are being introduced that will force banks to levy equal fees for customers of all banks in the European Union. This may mean national fees become higher. See Single Euro Payments Area .
These rules apply since 1 July 2002. [ 8 ] Eurozone and Swedish [ 9 ] 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).
Austria [ edit ]
Cash withdrawals are free for any owner of an Austrian Maestro card. (Very few, small banks charge an extra fee when one of their own customers uses a different bank's ATM.)
Finland [ edit ]
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. [ 10 ] Fees depend on card issuer.
Germany [ edit ]
German banks charge fees for withdrawals at another bank's ATM. Usual fees are 4-5 EUR. All ATMs are connected to the national Girocard 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.
Ireland [ edit ]
The Central Bank of Ireland forbids all ATM usage fees [citation needed ]. although the Government imposes a €40 annual duty on debit/ATM cards.
Netherlands [ edit ]
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.
Norway [ edit ]
No ATM normally surcharges. However most major card issuers will demand cash advance fees, unless the client pays a higher annual fee for the card. Some cards have no ATM fees, but these are the exception - like Skandiabanken VISA and Gebyrfri VISA, both smaller foreign-based banks.
Poland [ edit ]
There are few but extensive independent ATM operators in Poland (e.g. Euronet. 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 [ edit ]
All Multibanco 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.
Spain [ edit ]
There are significant variation in charges applied. A card issued by a Spanish Bank will normally expect to incurr a moderate fee from 0 to 1Euro to be applied to ATM withdrawals, where the transaction is conducted on an ATM operated and owned by the customers own bank. However outside this situation there is anecdotal evidence of significantly higher charges being applied where third party owner/operated ATMs are used, including those operated/owned by other Spanish banks. These may be in reported but unverified cases to be as high as 5+% of the value withdrawn. An effort is currently being made to research, identify and quantify the structure and nature of what from this anecdotal evidence, appear in some cases to be excessive charges. The case is complicated because the fees can originate from the ATM operator, or/and the customers own bank, for as "processing fees". That there is a serious consumer need for greater transparency in this important area of bank charges, in Spain, is beyond question, particularly with the scale and value of the Spanish tourism industry, and holiday home ownership. A comprehensive reference resource to the scale of this issue for customers, may soon be made available on the web. Please note that the comments above apply only to same currency transactions. It is beyond the scope of this note to evaluate excess charges that may result from use of a card that may be issued outside Spain, or originating in funds held in a non-Euro currency.
Sweden [ edit ]
In Sweden, most banks issue debit cards for an annual or monthly fee which includes free withdrawals in Sweden and within the eurozone. 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 [ edit ]
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 acquire 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 Society and the UK tabloid newspapers resulted in issuer fees being removed altogether. [ 11 ]
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. [ 12 ]
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, [ 13 ] but occasionally they have been known to charge up to ?5 [ 14 ] and ?10. [ 15 ]
Rules regarding signage on pay-to-use machines were introduced in 2005 and enhanced in 2006 [ 16 ] and since 2007 the number of pay-to-use cash machines has fallen, by the end of 2010 there were around 21,000. [ 12 ]
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. [ 17 ]
Middle East [ edit ]
Iran [ edit ]
The Shetab (Interbank Information Transfer Network) system is an electronic banking clearance and automated payments system used in Iran. The system was introduced in 2002 with the intention of creating a uniform backbone for the Iranian banking system to handle ATM, POS and other card-based transactions. There are no charges for money withdrawal in this network. Transferring money between two accounts in a same bank is free but between different banks costs from 5,000 to 9,000 (for amounts of 50,000 to 30,000,000) per day, and checking the account balance costs IRR 1000 for other banks' cards. Other services are currently free.