Have you ever thought to yourself “Why am I being charged a fee?” at the ATM? In this blog we will be discussing the different types of fees at the ATM and why they’re applied.
So, you’re at the ATM, needing cash and you’re going through the process of choosing the amount to withdraw. As you come to the point of approving the cash amount that you want, you can clearly see that there is a fee and you’re being asked to accept or decline it… What’s going on?
There are a couple of reasons that fees will have been added to the withdrawal amount, but rest assured, you haven’t been scammed.
The key reasons for the fees will be:
- You’ve asked to see the withdrawal amount in your home currency. This is called a Direct Currency Conversion (DCC) and it provides you with the amount your bank account is going to show for the transaction. It gives you a real time conversion value and a one-time fee for this service.
- You’ve declined the DCC service, but you are using a card that has been issued in another country. This is called a Direct Access Fee and agreement to charge this fee comes from the card issuer (i.e. Visa or Mastercard).
- Your country allows banks and ATM providers to charge at the ATM. A small fixed fee must be paid for the convenience of accessing your cash at an ATM outside of your banks ATM network.
The fees and final amounts will be clearly displayed on screen. So ultimately, the decision to accept or decline the fee and/or cancel the transaction, lies solely with you, the person making the withdrawal.
At no point will you be forced to accept the amount and you can cancel the transaction at any time.
The subject of fees is a difficult one, especially when the perception is that ATMs should be free to use. The term ‘Free ATM’ is a misnomer. Everything has a cost! Whilst you might think bank ATMs are offering a free service, it’s worth considering where the costs for running the bank ATM comes from? Or even checking account contracts from bank/card issuing institutions! Don’t forget that monthly account fees, mortgage interest rates or loan rates are frequently used to subsidise the cost of running the bank’s ATM estate.
Euronet does incur costs to run the ATM.
We recoup these costs clearly and transparently, by providing choices on the ATM screens. EU and Member State laws as well as the rules of the respective card schemes, require full transparency of any charges applied during any cross-border transactions, and we meet those requirements.
We do understand that you may feel strongly about paying fees for using an ATM. But we balance these fees with a much needed, beneficial, and convenient facility to our merchants, partners, and customers, who otherwise would not have access to cash as a payment option.
Sadly, we are subject to negative online comments. These normally stem from the DCC charges levied at our ATMs. However, as we have previously mentioned, the person using the ATM is the only one who can accept or decline the charge, not Euronet. At no point in the transaction do we scam or steal from the people using our ATMs. In fact, we are one of only a few companies who strictly adhere to the varied requirements and regulations.
So, it’s important to ask yourself… what is the cost of convenience to you?
Do you pay a small fee for your groceries to be delivered? Pay a little more for food at the local convenience store because it’s a short walk from your home? Pay a few cents more on the cost of petrol because it’s on your way? Or even, use an independent ATM, because you need cash in a foreign city/country? It’s worth considering what convenience looks like.
We know not everyone is going to agree with our fees and your opinion is always valid. However, it’s not fair for you to call us a scam or any sort of detrimental slander when it’s not true. Have you ever had to pay an extra £4 for the convenience of having your parcel delivered a day earlier? Or, how about having to pay for a parking ticket just to park your car somewhere?
If you have any questions about this topic or any of the others we have covered, we invite you to fill out a contact form and we will get back to you as quickly as we can.
If you are looking for information on other cash withdrawal issues why don’t you check out our other similar blogs.
“The ATM stole my money!” – discussing what cash retraction is, why it happens and what you need to do next.
“The ATM didn’t give me my money!” – discussing the who, what and why of cash dispense issues.