Can a Debit Card From a Different Bank Be Used at Another Bank?
If you have a debit card from one bank, you usually can use it at another bank's ATM
to withdraw cash. In some cases, if the banks are part of a network that allows you to
do so, you may even be able to use another bank's ATMs to deposit money. Either
your bank or the other bank might charge you for using an ATM outside your network,
so it's good to make sure you understand what fees apply before doing so.
Tips
It is possible to use your debit card at another bank's ATM, although if that bank
is out-of-network, you may have to pay a fee to use the machine.
Cash From Another Bank's ATM
You generally can use your debit card to withdraw money at an ATM owned by
another bank, or at an ATM owned by a third-party provider in a location such as a
convenience store or restaurant. Both your bank and the owner of the ATM
could charge you a fee for the transaction by deducting it from your bank balance.
Some ATMs allow you to do certain things, especially check your balance, without
paying a fee.
If the ATM that you're using is outside the United States, you might be charged a
larger fee, plus a currency conversion surcharge for withdrawing money from your
U.S. bank account in whatever foreign currency the ATM provides.
Read More: 5 Useful Apps for Paying off Student Loans
In some cases, bank ATMs and other ATMs may be part of networks allowing
customers from participating institutions to use other ATMs in the network without a
fee. You can check with your bank to see if it's part of such a network and often locate
nearby ATMs in the network by searching online or via the bank's mobile app.
Some banks also don't charge you for using out-of-network ATMs and even will refund
what those ATMs charge you to use them. Some banks cap the number or dollar
amount of ATM fees they will refund per month. Check with your bank to see if it offers
such a program.
If you find yourself getting charged lots of fees to access your money, you might want
to move some or all of your funds to a bank that offers a reciprocal program with
another bank or to one that has more ATMs near where you live or work.
Depositing Money
In some cases, you can deposit cash or checks at an ATM owned by another bank.
Some banks are part of networks that agree to accept deposits for one another, letting
you make deposits at their ATMs and direct them to your own bank. Depending on
your bank's policies, it might take some time for these deposits to be available in your
account.
Cash Back at the Register
In some cases, you can ask for "cash back" when paying for something with a debit
card at a retail store. You'll have to select "debit," rather than "credit," when paying
and enter your PIN rather than signing. In addition to making your purchase, you'll
be charged for the extra fund s you'll receive in cash from the store's register.
In some cases, you can avoid ATM fees by using this feature, though some banks or
retailers may charge a fee for the service.
How to Get Cash Using a Debit Card
Related
6 Tips to Save Using the Most Popular Food Delivery Apps
Learn More →
One benefit of a debit card is that you can use the funds in your checking account
without carrying cash. However, you might need cash for certain purchases. There are
two basic ways you can get cash with a debit card -- either at an automatic teller
machine or in a retail store that allows cash back on debit card purchases.
ATM Machines
You can withdraw cash from an ATM machine owned by your bank or owned by
another operator. While you can usually withdraw money from your bank's ATM
without paying a fee, you might have to pay a fee if you withdraw from a machine
owned by another bank. Most banks have daily withdrawal limits on cash withdrawals.
To make a withdrawal, you insert your card into the machine and enter your personal
identification code, or PIN number. You can only withdraw cash from the available
funds in your account.
Cash Back Transactions
The other option to get cash with your debit card is a cash back transaction through a
retail store. Most retailers let you add cash back on top of your purchase amount since
the money is paid directly from a bank account. Stores often place limits on the
amount you can get back to avoid quickly depleting their own cash for making change.
Why Do Banks Charge Money for Using Their ATM Machines?
Related
6 Tips to Save Using the Most Popular Food Delivery Apps
Learn More →
An ATM or Automated Teller Machine is a convenient way to get money using a debit
card; however, the fees that banks charge for withdrawing money can become
expensive
Features
ATMs frequently charge fees to users who are not account holders of the financial
institution for withdrawing or depositing money as well as performing balance
inquiries. The average ATM fee ranges from $1.50 to $2, according to Bankrate.com.
Costs
One of the reasons that banks charge fees is to compensate for the costs associated
with owning and operating the machine. Each ATM transaction costs a bank around
27 cents, according to StopATMFees.com.
Interchange
Whenever you use your ATM card at a financial institution other than the one that
houses your accounts, your bank has to pay the other bank a fee known as
interchange, which is between 30 cents and 65 cents. Another reason that banks
charge fees to non-account holders is to recoup some of the money they must pay to
other banks for interchange.
Fee Revenue
Like other types of businesses, banks and other financial institutions must be
profitable in order to remain in business. Fee revenue from ATM transactions is one
way for banks to make money.
Solutions
Many banks partner with other local banks or nationwide networks, agreeing not to
charge foreign ATM fees to each other's clients. If your bank does not participate in a
similar program or if you are not near any free ATMs, considering using your debit
card at a discount or grocery store and asking for cash back as this usually does not
charge a fee.
Do You Need a PIN Number on Debit Cards?
Some debit-card users don't need a personal identification number to
make purchases at stores. In such cases, people may choose to never
use a PIN. However, debit-card users will likely run into problems trying to
withdraw cash from their debit-card accounts without a PIN. Card issuers
usually link PINs to customer accounts to allow for cash withdrawals.
Signature-Based Cards
People who have signature-based debit cards don't need to have PINs to make store
purchases. Signature-based cards resemble credit cards because they often have a
Visa or MasterCard logo on them. Cardholders authorize their store purchases by
signing for them just as credit-card users do when they make purchases. Unlike credit-
card accounts, a signature-based debit card purchase amount is deducted from a
cardholder's checking account within two or three days after the purchase.
Activating PINs
Some banks issue debit cards that allow users to complete transactions by signing for
purchases or entering a PIN. In such cases, the bank usually issues an initial PIN that
cardholders can change as they see fit so that the number is easy to remember. The
initial PIN usually needs to be activated by a cardholder through the bank's automated
phone system before it can be used. Cardholders may choose not to activate the
number if they don't want to use a PIN. However, activated PINs are needed if
cardholders want to withdraw money from automatic-teller machines.
Cash Rewards
Some debit-card issuers offer their customers cash rewards for making purchases with
their cards. Yet the issuers usually require that cardholders sign for their purchases to
receive rewards instead of using PINs. Therefore, people who want to take advantage
of receiving a percentage of their purchases back as a cash reward should sign for
their debit-card purchases. Cash rewards are usually deposited to customers'
accounts by the card issuer on a monthly basis.
Fees
Watch out for fees that some card issuers charge; using a PIN may cost you more
money. Cardholder agreements list the fees that issuers charge. Debit-card users who
thoroughly read their agreements can figure out how to avoid paying some fees. For
instance, some banks charge debit cardholders a fee if they complete a transaction by
entering a PIN instead of signing for a purchase. Retailers pay banks a fee for
signature-based transactions, which nets more profits for banks. Therefore, banks
usually prefer that debit-card customers sign for their purchases.
Debit and ATM cards are two of the most popular ways to access money in your current or
savings account. These cards give you flexible access to your money, but you need to be
aware of any fees that you may be charged when you use your card.
Debit cards
Most banks will offer you a debit card when you open your account. Debit cards look like
credit cards—they will have a RuPay®, Visa® or MasterCard® logo on them. However, they
are definitely not credit cards. A debit card will not help you build a credit rating layer.
You can use a debit card to make purchases without accumulating interest layer because
the money comes directly from your current or savings account. Debit cards can take the
place of issuing cheques, paying with cash or using a credit card.
Debit cards will also usually double as your ATM card, allowing you to withdraw cash or
deposit money at an ATM machine.
ATM cards
Some banks offer you an ATM card that allows you to withdraw money from your current or
savings account, but only through their ATM machine. Unlike debit cards, ATM cards do not
have the RuPay®, Visa® or MasterCard® logo and, in most cases, may not be used to make
store purchases directly.
ATM cards give you easy access to your money, but be careful because that easy access
might cost you. For example, if you withdraw money from your account at your own bank's
ATM, you probably won't pay any fees for a minimum no of transactions. However, if you
withdraw money from a different bank's ATM, you could get charged a fee by your bank.
