Benefits and Risks of Using ATM Machines

An ATM or Automatic Teller Machine is a very convenient mode for withdrawing cash. It helps one access and check the bank account details and also helps make transactions more easier. Although, there are huge benefits of using ATMs, there are a few issues with regard to its functioning too.

Benefits

ATMs are easily accessible and. Some ATMs are made with bodies where you could just drive up to one and get access to your money without leaving your car.

Getting money from an ATM makes budgeting a little easier to handle than if you just kept on using debit or credit cards for transactions. This comes as you will avoid having to keep tabs on card-based transactions, what with cash transactions being instant and easy to follow.

These are accessible while traveling overseas too. An ATM makes it easier for you to withdraw cash from a certain currency without having to spend too much in the currency conversion process. When you use an ATM overseas, you will receive cash in the native currency of the respective country.

PIN numbers and other forms of identification ensure that you will be protected. It helps keep your data secure as no one will try and get into your account because only you know your pin number.

You can not only withdraw money from an ATM but also use it for depositing cheque or to transfer money from one account to another. The features will vary based on each Bank’s ATM policy. ATMs located near the bank offices might offer more features; these help save time that you’d otherwise spend waiting to get certain services.

Risks

ATM machines are often installed in unsafe places that are poorly-lit. Such ATM spots help promote ATM malpractices.

Mirrors or other scanners could be attached onto an ATM by ATM hackers. These are used to identify your PIN number.

Banks could charge extra fee for transactions made through other bank ATMs. One can also avail free ATM services if one uses the same bank ATM.

Overseas ATM use might result in adding extra charges with regard to their currency exchange rates. In such a case, you might end up paying a higher fee for an overseas transaction. In addition, the exchange rate read by an ATM could be less than the actual currency rate.

The card reader on an ATM might not always work. It could wear out with time due to excessive use. Sometimes this could also arise due to wear and tear caused by excessive use of your debit/credit card.

ATMs are easy to use and highly convenient due to their 24X7 availability. On the other hand, they could also be misused due to various security-related shortcomings. Always watch out for any loopholes and be alert while making transactions. This will help keep your accounts safe and secure.