this is probably old news - ATM vs. POS

**mek42** · 05-28-2010, 08:52 AM

I have difficluties acquiring paper currency. My bank, that I like, was from when I lived in a nearby city and currently there are no instances of my bank or an ATM thereof throughout my entire work commute. I may want some paper currency right after work today, so I reviewed the fees for other bank ATM vs. POS usage.

In addition to whatever the other bank charges, I get charged $1.50 from my bank for using another bank ATM. On the other hand, if I use the card at, say, a grocery store and get cash back, I am only charged $0.25 for the POS transaction (point-of-sale).

Since my wife has already charged me with making a grocery store purchase today for the benefit of the household, I just need to remember to do it as a POS and ask for cash back instead of as a credit card like I usually do.

**Darlene** · 05-28-2010, 09:16 AM

Pays to know who charges what and seems like they are always changing the rules on you so it's good to keep an eye on charges. I've never used an ATM, ever, lol. I very rarely need cash and use my Discover card for just about everything, paying it in full each month so I never have any added fees and get cash back bonus for my purchases.
Any chance you can keep a small amount of cash on hand at home so you don't have to pay mek42?

**mek42** · 05-28-2010, 09:41 AM

In the future I can plan better - but just found out that what I was planning to do with paper currency right after work is no longer on the table anyway, so the whole thing is moot.

What I think I will do in the future (if I know I need cash at least a day ahead) is to either get cash from my bank ATM ahead of time if I'm in a nearby city where my bank is or, since our EF is at a bank in the town where we live, initiate a bank-to-bank transfer (free for me) from my bank to the EF bank and use the ATM card associated with the EF.

**Contrary Housewife** · 05-28-2010, 10:25 AM

It might pay to find a new bank. Maybe you can get one more convenient to your home and work, and one that does not charge fees.

I don't know what our ATM fee is since I never use it, but "cash back" with a purchase is free with my bank. Any Walgreens or CVS is now my ATM.

**Lady_V** · 05-28-2010, 10:31 AM

CH beat me too it... if the bank that wants to charge you is not in a place of convience... change banks...

OR

Change the accounts around. Use the money in the farther away bank as the EF bank, and the local as the daily.

**frugalfranny** · 05-28-2010, 10:32 AM

Originally Posted by Darlene

Pays to know who charges what and seems like they are always changing the rules on you so it's good to keep an eye on charges. I've never used an ATM, ever, lol.

And they are always changing the rules...so you have to read all the 'fillers' that they send with the bank statements.

My newest bank informed me when I opened the acct. that they reimburse up to $10 a month for 'other bank' ATM....wth???.....never use them so don't have to worry. But??? Is this the norm? thought it strange.......

**Libby** · 05-28-2010, 12:06 PM

Wow banking is so different between Canada & USA.

My bank allows me free unltd debit transactions (straight from my bank account, not credit/charge) and unltd cash withdrawls up to my daily maximum - at my bank branches. If I didn't have issues using debit I'd be swiping all the time instead of using my CC. Its easier for me to use my CC now and just trxfr the amount spent weekly. (I don't shop often)

I also take out a hundred dollars cash to keep at home for those smaller purchases and places they don't take plastic (debit/CC) and replenish it when it gets low. Maybe you can start including that in your budget - cash withdrawal for a stash at home?

**McD** · 05-28-2010, 12:31 PM

My bank is tied in with priveleged status ATMS here in Iowa. As long as the ATM I go to has the big sticker wtih the priveleged status symbol, I don't pay any fees. I've never been charged for making a POS transaction ever. If I were to be charged that, I'd switch banks.

**mek42** · 05-28-2010, 12:34 PM

Well, non-bank ATM and POS transactions are about the only thing I ever get charged for. Bank-to-bank transfers by ACH either incoming or outgoing are free, the savings interest is about twice the national average and online bill pay is free with a reasonably friendly interface. It is also a fairly large international bank - I have used bank ATMs in Canada, for example.

The major issue is that it is kind of a drama for me to have paper currency at the moment, which is usually ok, as I try to avoid paper currency as much as possible (it tends to "fall" out of the big hole in my wallet). I'm much more disciplined about spending looking at the numbers in my check register and on my Google docs budget spreadsheet.

We're also planning to move soon, so no idea what the local banks are going to be like.

Libby, when I use my debit card as a credit card I mean signing for it with the MC / Visa logo, not entering my PIN. The money still comes from my checking account and this way I have the fraud protections from the credit card company.

**TigerGirl1226** · 05-28-2010, 12:42 PM

I've never been charged for "cash back". Some stores here require a minimum purchase and max out the cash back, but that isn't a big deal to me. I use a credit union and most of the other CUs don't charge a fee.

**mek42** · 05-28-2010, 01:00 PM

Just our luck - the local CU that my wife has her primary account with charged $0.25 when we tried Aldi a few weeks ago.

I wonder if this sort of fee might be a regional thing?

**TigerGirl1226** · 05-28-2010, 01:03 PM

Originally Posted by mek42

I wonder if this sort of fee might be a regional thing?

Perhaps

**mombottoo** · 05-29-2010, 12:11 PM

I cannot believe how many people have told me that they are now charged fees for using their debit card on POS transactions! I would come unglued if my bank did this...my dd just switched banks for this reason. Her bank was bought out by another bank & the new bank charges $1.00 for each POS transaction, she about flipped!

I would think that debit cards would make the banks job easier...

**frugalwarrior2** · 05-29-2010, 01:34 PM

Our C.U was unlimited but only allows 4 per month now. It's moving towards acting like a bank.
If I go thru the groc/drugstore w/ purchase and get cash back it's free. Atm is one place we plugged the leak for a good $100. per year.
I am going to try Costco next year for checks. ( we are currently stocked up.). Thats another thing I HATE paying for.

**beks37** · 05-29-2010, 03:57 PM

My bank charges 20 cents for a POS transaction using a pin number, but there is no charge for a POS transaction using as a credit/sign for it. I only get cash back and incur the 20 cent fee when I really need the cash and don't have a chance to get to the bank. My bank is local, but does not have any branches by my house. I will never switch banks because I used to work there for 5 years and a lot of the people I worked with are now in branch manager positions. If something happened I could get personalized help in an instance.

Mek-I'd pay the POS debit charge over the atm charge if you can't get to the bank.