Give your bank an unfair penalty charge

Badger_Lady

My bank keeps telling me, "every time a customer uses an ATM from a different bank to withdraw cash, it costs us 30p."

What do they want me to do about it? "Make sure you use our ATMs".

What incentive to they provide for doing this? Nothing! In effect, they want me to walk an extra few hundred yards, or ask someone for directions to my nearest branch while I'm on my Bank Holiday, instead of withdrawing cash from the equally helpful cash machine right in front of me, as a favour to them!

So, for all those who've been denied a favour by their bank, make sure you use a rival ATM. In fact, as long as there's no queue, just withdraw £10 at a time, over and over, until you have enough money. Each transaction is 30p of revenge!

nickcardwell

they must then each charge each other 30p. So in the end, bank charges between banks should cancel each other out (so in fact just increase turnover)

Years ago , you use to be able to send free text messages from the internet to mobile phones. An agreeement between the mobile operators they didnt charge each other. Then over night they started to charge each other (appears to increase turnover and nothing else) overnight free txt messages to mobile phones over the internet disappeared.

helloecho

That's hilarious! I'm sure it's only a matter of time before they start charging us to withdraw from rival cashpoints, but for the time being - count me IN!

Does it cost banks if you ask for cashback at a shop? I never quite know how that works. Does the shop basically just sell you cash from their till, or is it like a cash withdrawal from an ATM? I realise this is probably a daft question, but I always wonder, especially when some shops refuse to give cashback.

nomoneytoday

Back in the 1980s and early 1990s' they used to charge to use other bank's and Building Society machines. Then my TSB card could be used at Midland and Link machines for free. It cost £1 to use Barclays or Lloyds

Nowadays 90% odd of them are free as long as part of Link

helloecho wrote: »

Does it cost banks if you ask for cashback at a shop? I never quite know how that works. Does the shop basically just sell you cash from their till, or is it like a cash withdrawal from an ATM? I realise this is probably a daft question, but I always wonder, especially when some shops refuse to give cashback.

No. The shopkeeper pays a fixed fee when taking a debit card. They benefit by having less cash in the till, so have to pay Securicor (or similar) less to bank the cash

PBA

Badger_Lady wrote: »

What incentive to they provide for doing this? Nothing!

Except that if you use their own machine you can (depending on which bank) get mini statements, deposit money, transfer between accounts. Using a competitor's machine you can only get your main account balance or withdraw cash.

IvanOpinion

Can someone remind me WHO will ultimately be paying for these charges?

ivan

Pound

Nice idea but these 30p charges are a drop in the ocean to the bank so I wouldn't invest time in doing this.

Badger_Lady

Pound wrote: »

Nice idea but these 30p charges are a drop in the ocean to the bank so I wouldn't invest time in doing this.

Then why are they making such a fuss over it? I'm not really suggesting a rebellious movement over this, just having an old-fashioned rant about the bank asking me for a favour! :rolleyes:

Cheeky sods. :rotfl:

mookie

When your card is swallowed in a rival ATM it is against banking rules for the card to be returned to the customer, instead it is destroyed and you have to order a new card from your own bank.

If you lose your card in your own banks ATM, they will retrieve the card next time they access the machine, or very often if the machine is allowed to be accessed in opening hours it may be returned while you wait.

I always use my own banks ATM, more cards get swallowed now than ever mainly due to fraudsters who try and fit devices on the machines and damage them, especially at weekends, very often if the damage is on the card reader it is not visible from the outside of the machine. The average replacement card takes 4-5 working days to arrive. IMO its not worth the hassle or inconvenience it could cause me.

Alfie_E

nickcardwell wrote: »

they must then each charge each other 30p. So in the end, bank charges between banks should cancel each other out (so in fact just increase turnover)

Badger_Lady wrote: »

Then why are they making such a fuss over it?

The charges don’t just cancel out. I’m guessing your bank doesn’t have a particularly extensive network of their own ATMs. If a bank has a lot of ATMs, the balance of charges will be in their favour. They’ll be making an income from their investment in ATMs. If a bank fails to provide sufficient access to their own ATMs, they’ll end up paying other banks for providing this service to their customers.

It should also be remembered that, right now, banks are looking to save any money they can.

moonrakerz

helloecho wrote: »

Does it cost banks if you ask for cashback at a shop? I never quite know how that works. Does the shop basically just sell you cash from their till, or is it like a cash withdrawal from an ATM? I realise this is probably a daft question, but I always wonder, especially when some shops refuse to give cashback.

Shops pay a flat fee for each debit card transaction. When you ask for a "cash back" most of the big stores are more than happy to oblige because you are taking cash from their tills which makes it a whole lot easier for them to balance up at the end of the day - and perhaps less cash in the till is a little less tempting to someone who might want to "borrow" some !