ATM Dos And Don'ts

If you have a checking or savings account, chances are you also have an ATM or a debit card. But do you use this technology wisely?

Like online banking, ATMs offer an alternative to entering a physical bank. A 2009 ABA survey found that 17 percent of bank customers preferred to manage their accounts at ATMs.

ATMs allow you to make withdrawals and deposits, check balances, print mini statements, and even pay credit cards linked to your account. Best of all, ATMs are available all over the world, giving you access to your cash whenever and wherever you need it.

But being careless could harm your financial security, as well as your personal safety. The following simple dos and don’ts can keep you and your money secure.

Don’t Be A PIN-head

Given that your PIN, or personal identification number, is all that stands between your ATM card and your money, it should be chosen wisely. This four-digit number should be unique to you and hard for a crook to guess – so in other words, not your birthday, anniversary, or house number.

Once you’ve chosen your PIN, memorize it. If possible, don’t write it down anywhere, but if you do, definitely don’t keep your PIN with or on your card. And no worries if you do forget it: you can easily request a new PIN from your bank.

Do Keep Track Of Your Card

Your ATM card is a link to all of your accounts, and money, so keep track of it just as you would cash or any other credit card. Plus, most ATM cards are also debit cards, and can be used like a credit card instead of cash or a check. A simple swipe withdraws money directly from your account at many merchants, since a signature isn’t required for purchases of $25 or less.

Take note that the time frame for reporting fraudulent use and not being held responsible for any unauthorized use is shorter on debit cards than credit cards — usually only two days. So if you lose your debit card, report it immediately.

Don’t Use Out-Of-Network ATMs

If you don’t watch it, ATMs are an easy way to rack up unnecessary fees. That’s because using an out-of-network ATM – one attached to a bank other than yours – will net you fees from the other bank, as well as from yours. Bankrate’s 2010 Checking Study found using an ATM outside of your bank’s network cost an average of $3.74 per transaction. In other words, a $20 withdrawal actually cost $23.74. At that rate, regular withdrawals from out-of-network ATMs can really add up.

But you can easily avoid these fees by using only the ATMs in your bank’s network. This requires planning ahead, i.e., maybe always withdrawing cash from your bank’s ATM on set days.

Do Exercise Caution

ATMs can be a target for thieves, especially at night. It’s always best to be aware of your surroundings, and choose an ATM in a well-lit and populated area.

You should also shield the keypad when you punch in your PIN with your opposite hand, so that no one can see what it is. In addition, enter and exit the area quickly, and avoid counting your cash while standing at the ATM.

Using ATMs wisely is key to staying safe – and avoiding fees and fraudulent activity.