William Penn Life, 2004 (39. évfolyam, 1-12. szám)

2004-08-01 / 8. szám

Moneywi$e

ATMs & You

How to reap the benefits, save on fees and protect yourself against potential problems

from FDIC Consumer News

The ATM-short for "automated teller machine"~has been a part of our life since the mid-1960s. The first ATMs were strictly for getting cash. Today's machines do much more.

You can probably go to one of your bank's ATMs and make a deposit or loan payment, transfer funds between accounts, or inquire about your account balance.

You may use your ATM card to get money on a trip, even in a foreign country. That way you won't have to carry extra cash that can be lost or stolen. You can even go to some ATMs to buy postage stamps or add money to a pre-paid cell phone service.

ATM cards also may be used to make purchases at stores, with the payment automatically coming from your bank account.

While ATMs are very common and very beneficial, "a few people are hesitant about using ATMs and others just have a lot of questions or concerns, especially when they hear the occasional horror story," says Janet Kincaid, senior consumer affairs officer for the Federal Deposit Insurance Corporation (FDIC). She adds, though, that "the more people learn how ATMs can meet their needs, the more they can use ATMs to take away some of life's hassles."

What follows is a collection of tips and information to help you feel more comfortable using ATMs, enjoy the benefits, save on fees and protect against potential problems, including account errors and fraud.

Tips for Avoiding or Resolving an ATM Problem

ATMs in the United States handle more than 10 billion transactions a year, and the overwhelming majority go smoothly. But sometimes things don't go the way you want or expect. Here are some problems that ATM users can encounter, plus tips for avoiding or resolving them.

"A thief is using my ATM card." ATM fraud can occur if a thief steals an existing ATM card or makes a counterfeit card, and obtains your personal identification number (PIN), which is needed to authorize transactions.

To limit your liability for any losses, it's important to

immediately report the problem to your ATM card issuer. Your bank may ask you to sign an affidavit or other notice of the theft. Important: Under the Electronic Fund Transfer Act (EFTA), if you report that your ATM card is lost or stolen within two business days after you realize your card is missing, your losses are limited to a maximum of $50 for any unauthorized use. If you wait more than two business days to report a lost or stolen ATM card, your potential liability goes up significantly.

Depending on the circumstances, if it is clear that you are an innocent victim of fraud and you promptly reported the loss or theft of the card or an unauthorized transaction, many banks will voluntarily hold you to no liability.

"My bank statement shows an incorrect amount for an ATM withdrawal." Always save your ATM receipts until you compare them to your monthly statement or you verify your transactions online. Promptly report any error. To be fully protected under the EFT A, you must notify your financial institution orally or in writing no later than 60 days after it sends your periodic statement.

"The ATM ate my card." This can happen if, for example, the card was defective or your bank suspects it may be involved in some type of fraudulent activity. Immediately contact the financial institution that issued your card. Don't expect to receive your original ATM card back—you'll probably get a replacement card. The process can occur fairly quickly if you notify your bank immediately.

"The machine cheated me." What should you do if the

ATM gives you too little cash, or no cash at all, and the receipt says you got exactly what you asked for? Immediately contact your bank to report the problem, even if the machine belongs to another financial institution or company (although it's wise to alert that other entity, too, if possible).

Make sure to keep a record of the conversation. It also never hurts to follow up in writing. The next step is for the ATM's owner to determine if the machine has too much or too little cash, and why.

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Williu Pen Life, August 2004