Some customers of banking institutions may be faced with a situation in which they were not able to get the desired amount of cash at the ATM. This situation sometimes causes misunderstanding on the part of clients of financial institutions. However, it is not unusual. This is a cash withdrawal limit at ATMs. It is curious that not all cardholders know about it, although this is important information.
What are you talking about?
The cash withdrawal limit does not allow you to receive cash in excess of the amount set by the bank in which you are served. The established limit may be valid for a day, a month or a single banking operation.
It’s easy to guess by the name during which period each of the above withdrawal restrictions applies. For example, if you have used up your daily limit, you can repeat the financial transaction the next day. But if you used the entire monthly limit, you will have to wait until the beginning of the next period.
The limit on one-time cash withdrawals is usually explained by technical feasibility. The number of bills stored in the device is limited. Therefore, the client can not always get the right amount right away. However, if the daily limit has not been exhausted, he can repeat the cash withdrawal operation using another device.
It is worth noting that the limit applies not only to ATMs, but also to cash withdrawal points, which are usually located in bank offices.
Causes
Bank representatives argue that such limits are set for a reason. This is due to an attempt to protect card users from potential scammers. Indeed, when you try to get an impressive amount from a bank card, the bank simply will not allow you to complete this operation.
However, there are also restrictions on cash withdrawals at the bank. This is due to counteracting illegal cash withdrawals. However, it is also worth noting that, as a rule, a client at a bank’s office manages to receive a significantly higher amount than at an ATM.
However, this is not all the reasons that can explain the establishment of such restrictions for customers. Indeed, in fact, it is beneficial to the banks themselves.
For example, during a crisis and economic instability, clients try to cash out cash, which causes an outflow of funds from a banking organization. The established limits allow this to be prevented. After all, the longer the clients' money is in the bank, the more he manages to earn.
Limits for a single withdrawal may be explained by the presence of a commission for each transaction made. For example, this happens if you withdraw money from a credit card or use a third-party ATM.
Maximum amount to withdraw
Installed by the Central Bank. However, each bank may change the cash withdrawal limit. And not in a big, but in a smaller direction. Because the maximum amount of cash that a client receives must not exceed the limit established by law.
The client can receive money from a debit or credit card. And you need to understand that the restriction of cash withdrawals through ATMs is valid for both. However, for credit, the maximum amount may also be limited by the terms of the contract, according to which the bank sets the amount of borrowed funds that the client can dispose of. It depends on credit history and solvency.
What does it depend on?
The limit on withdrawing cash from a debit card is determined by the limit set by the bank, but should not exceed the maximum amount in accordance with the law. It depends on the type of plastic card, as well as the method of obtaining cash. Often at the bank’s offices you can get a larger amount than at an ATM. This is important to consider if you do not want to exceed the limits on cash withdrawals from your account.
As for the type of card, the cash limit is usually directly proportional to the cost of servicing it. The higher the class of the card, the more expensive it costs the owner. However, a high service charge provides a wider range of options. This applies in particular to cash withdrawals. The higher the status of the card, the more cash its holder will be able to receive.
Ways to solve the problem
If the client has exceeded the established limit, he will not be able to receive cash from his own plastic card either at the ATM or at the office. However, there are alternative options for achieving your own goal.
For example, funds can be transferred to another account and use it to receive cash.
In addition, you need to carefully read the terms of the banking organization in which you are served. As a rule, withdrawal of cash over the established limit is possible. However, it is important to understand that in this case, most likely, you will have to pay a commission. Its size also needs to be specified in your bank. The conditions of each organization may vary significantly, so it makes no sense to give any numbers.
conclusions
Using a bank card to withdraw cash, be prepared sooner or later to face a limit on receiving cash. It must be explained that these restrictions are convenient for both banks and customers.
Financial institutions in this way try to prevent the outflow of funds and at the same time interest customers in making cashless payments. After all, for them, as a rule, no limits are set. In addition, by reducing the number of transactions using cash, banks reduce their own costs of collection, as well as the maintenance and installation of cash dispensing devices.
It must be said that benefits also exist for customers. In particular, such restrictions protect their accounts from fraudsters. If someone, having unfair intentions, tries to cash an impressive amount using your plastic card, the established limit will not allow this.