Loan Mortgage Credit! » ATM

What do you know about ATM?

R. MAK. — Tue, 22 Sep 2009 17:20:41 +0000

An ATM (Automatic or Automated Teller Machine) is a name given to a computerized machine which is designed to dispense cash to bank customers without any requirement of human interaction. The ATM is also programmed to perform the functions of taking deposits, transferring money between bank accounts and providing other basic financial services.

24 Hours Service of an ATM

Most of the banks feature one or more “on premises” ATMs for the customers so that customers may have access to services 24 hours a day, seven days a week. During the working hours of banks the ATM can reduce long lines inside the bank by providing an alternative to a human teller. The better thing is that, the ATM continues to be available long after that the bank is closed. The ATM is there to serve if you need cash in the evening, on a holiday or Sunday.

How to use an ATM?

For using an ATM, the customer feeds it a bankcard, sometimes also called a debit card. This cards is identical to a credit card but is issued from the bank for the use with an ATM. Once that the machine reads the magnetic strip on the card, a personal identification number is requested by it, which is also called PIN. Security is provided by the PIN in case the card is lost or falls into the wrong hands.

When the the associated PIN is entered correctly, on the ATM screen a list of choices will appear. Through the touch-screen or buttons, the customer navigates through the ATM screens to complete the desired transaction. When the customer chooses to withdraw cash, the cash is dispersed through a feeder slot.

If customer has to make a deposit, the customer feeds the deposit envelope into a deposit slot when cued by the machine. Receipts are optionally printed for the customer, but a record of all transactions is retrained by the ATM. Tied into the bank’s computer system, the ATM is able to automatically deduct withdrawals or add deposits to the customer’s account(s).

Fees for Use of ATM

No fees is charged by several banks from the customers for using their own ATMs. However, if you withdraw cash from an ATM that does not belong to your bank, than possibly you will have to pay the transaction fees. About non-customer fees ATMs normally have posted information, though the fees your own bank might charge will not be included in it.

New Incarnations of ATM

Patents for ATMs were reportedly filed as early as the 1930s, but the first actual ATM that has been ever credited is by Barclays Bank of London in 1967. Linux and Microsoft-based screens, and talking ATMs for the blind are included in the latest incarnations of these now-ubiquitous machines.

People who liked this Post also read

Debit Cards Quickly Becoming the Plastic of Choice for Americans

R. MAK. — Wed, 01 Jul 2009 15:19:06 +0000

It has been reported by Visa Inc that consumers are spending more money on debit cards than with credit cards now. It was reported by Visa that in 2008, consumers spent $206 billion on Visa debit cards. This figure is slightly higher than the $203 billion which has been spent using Visa credit cards by the consumers during the same year. In the past, consumers were spending more on credit card than debit card and the flip flopping of preference is attributed to the recession.

Nowadays consumers have started focusing more on ways to reduce their debt and they are trying to avoid any such things that become the reason of creating more debt for them, and so they have turned towards the use of debit cards to purchase anything they need as the debit cards gives them the ability by which they can avoid more debt accumulation. Now all the debit cards can be used by the consumers at every place where credit cards are accepted, it makes sense that American’s would start making the switch.

Fraud Protections Not Created Equal Between Debit and Credit Cards

In most cases, the fraud protections of credit cards still enjoys superiority over debit cards. In case if your credit card is stolen, then according to law the maximum amount for which you are responsible to pay if there is any unauthorized transactions is $50. On the other hand if your debit card is stolen, as long as it takes you to become aware of it and report it to the debit card company, the more you may be responsible for repaying.

However, the same credit card-style fraud protection coverage as they give to their credit cards is offered by some banks to their debit cards also. It is said by Visa that they have instructed all banks issuing debit cards with the Visa logo on them to deal with any consumer who reports fraudulent use of their card in the identical manner as they would if it was a credit card. What it means is that getting the money back to the consumer in a timely fashion. It is being expected by some consumers that their should be government regulations involving debit card protections, but right now government has not made any regulations regarding this matter.

Due to security concerns credit cards or debit cards are not used by some of the consumers. The facility of ATM only cards is being offered by a number of banks. By these cards it becomes possible for the consumers to withdraw cash from an ATM but as these cards do not contain a Visa or MasterCard logo so therefore they cannot be used like a credit card at a retailer or online in order to make purchases. Using the ATM-only card has a benefit over a debit card and that is with it you can quickly access cash even though if the banks are closed but in case if someone has stolen your ATM card, it will not be possible for them to make any purchases using it. The only way by which they could steal from you is if they have also figured out your PIN (personal identification number) number to make a cash withdrawal from the ATM.

Debit Cards are Familiar in Appearance and Functionality

It has been thought by some specialists that the reason behind the popularity of debit cards is that they look and work almost exactly the same as a credit card do. To complete your transaction you just have to whip it out, slide it through the payment terminal or handover it to the cashier, and that’s it you have completed your transaction. In case of credit card you have to pay the balance back later with interest, while the debit card simply pulls your money from your bank account and due to the reason that it’s your own money you don’t have to pay anything extra in interest fees. Since you can only spend the money that you have in your account, so you don’t have to worry about costly bills every month that you can’t afford to pay.

Just like credit cards, debit cards can also be used to buy things by phone or internet, what you have to do is just to give your card number, expiration date, and sometimes you also have to give the little three digit code on the back of the card.

People who liked this Post also read

How Many Credit Cards Should I have

R. MAK. — Thu, 11 Jun 2009 20:37:19 +0000

When we are talking about credit cards, I advise you to keep more than one credit card as it will beneficial to hold more than one credit cards, then to rely on a single credit card for all your purchases.

Perhaps one of the most important reasons to carry multiple credit cards is that in case if your credit card is denied due to any given reason, like may be your card is being maxed out or blocked by the card issuer. I have faced such situations where my credit card was denied just because of the reason that I had made a series of large purchases in a short period of time.

When I face such situation then instead of walking away denied, if I had another card I could have pull out it to complete the transaction.

There are many other examples when a merchant won’t accept a particular type of credit card, like there are such merchants who do not accept any payment made by using an American Express card and there are a number of different reasons due to which merchants refuse to accept AMEX.
So in order to avoid any refusal, it is quite a sensible decision to have a backup, especially if you typically use an American Express credit card as your payment method of choice.

For most of the purchases I use an American Express, but sometimes I need to buy certain things from such places where AMEX is not acceptable as payment method so there I have to pull out a Citi MasterCard or a Discover Card to fund a transaction.
Let us imagine a situation where you are out of cash and your credit card is also not acceptable.
If you carry multiple credit cards, it will help you to avoid using your debit card for transactions, non usage of debit card clearly has its benefits.
I try to avoid using a debit card and behind this there are many reasons. I only use it when I don’t have any other way to pay off.
Less purchase protection is carried by the debit cards as compared to the credit cards and moreover no incentives such as rewards or cash back
They are also directly linked to your important banking accounts. So if your credit card land in wrong hands it can spell big problems.
After all, a new credit card is easily issued than a new checking account if it’s compromised.
Lastly I must say that, credit cards may serve different purposes, such as one card focuses on gas rebates, while another might give you a huge incentive for buying business related expenses.
Make sure you’re getting the most out of your credit cards, and using the right one in the right situation.
That said, you don’t need to go open a new credit card just because you have one card.
Just make sure you carry a backup if you’ve got one, and make sure you leave spare or unused cards in a safe place if you choose to keep them at home.

People who liked this Post also read

How much do you save with Refinancing?

R. MAK. — Fri, 05 Jun 2009 21:29:07 +0000

It is a commonly asked question in today’s real estate market that how much I can save with refinancing. After that the Obama Mortgage Bailout Plan will begin to take effect at the beginning of March it has now become even more important to know that what will be the benefits of refinancing.

For those who have decided to refinance they are going to be offered lower mortgages rates by mortgage lenders as many lenders are going to get incentives to offer lower mortgage rates. As you have now the opportunity to refinance at lower rates, the question arises how much will you really save?

You cannot get the answer to this question without analyzing your current mortgage loan. According to the general rule of thumb you should refinance if you are going to reduce your mortgage by a full percentage point. In order to determine the exact amount that you will save on your monthly payments if you opt to refinancing to a lower rate you can use the mortgage calculator.

It is now very attractive to find out lenders who are in reality offering the low rates that are being advertised as nowadays the government is encouraging home owners to refinance.

All such ads advertising for rates under 5% are seen by us but there are very few home owners that have got the chance to lock in at these offered rates. Now at this time you may get the lower rates as lenders will get incentives to offer you these rates.

Don’t just sign the contract in a hurry even if you do get an extraordinarily low rate, before going further make sure to check on all the fees and also check the closing costs included in the contract. Many times it has happened to home owners that before reading all the clause of contract they just sign it and after that they realize that they will have to pay up to $1000 in fees and costs. One of your first questions that you should ask your mortgage lender before signing a contract of refinance is that he must tell you the cost of fees.

Today the time in which we are at present is one of the best times in the whole history of the United States in which we can refinance a house or purchase a new home. If you are also one of those Americans who have been lucky enough and succeeded to get through this troubled financial times unscathed then you will prosper from the subprime crisis.

What could be better than to get lower prices and lower rates? Making this situation even more favorable for you, you have to pay less tax in 2009 as well.

People who liked this Post also read

Why to Use a Prepaid Debit Card Instead of a Credit Card?

R. MAK. — Mon, 25 May 2009 23:34:08 +0000

During the 1990′s due to the great losses credit card companies had to look at a different ways of securing their debts. At that time they found a new way of secured credit card and following close behind came the prepaid debit card. Prepaid debit cards are now issued by most credit card companies, such as Visa, American Express and MasterCard.

The functional procedure of this card is that, funds are added to a prepaid debit card at a retail location or through an online bank. This card works almost similar to a prepaid phone card. Actually, a prepaid debit card is cash that has been applied to a plastic card, this is done so that the funds can be accessed electronically. A limit is assigned to this card that is identical to the amount deposited for that card. Each time you use the card, the amount on the prepaid debit card reduces until the funds becomes zero.

Prepaid cards contain a wide range of benefits. They are very much safer for consumers to carry than cash and they can be used in all countries of the world, it depends that from which company you chose to obtain a prepaid debit card. MasterCard, American Express, Visa all offer these cards, as do some banks.

There are other benefits also like you don’t have to worry about a monthly credit card bill or debt. Any person who reaches the age of eighteen can carry a prepaid debit card, their credit history doesn’t matters.

Even those are eligible to access a prepaid debit card that has extremely poor credit because they must have to have funds before the card is issued.

Another advantage of prepaid debit cards is that they can easily be re-loaded by phone or online as long as there are funds available. This allows the user to have an easy access to electronic funds when on vacation and during business travel. Nowadays many companies prefer to use prepaid debit cards in place of expense accounts or company credit cards.

It is due to the reason that with any other type of card the fees can be astronomical. The card companies charge fees for getting the card, re-loading it, for going over the limit, cashing out the card and canceling it if you should decide to do so. So those cards having the lesser fees are the best to use, so search around to see which companies are offering the best deals so that you may get the cards with lowest fees.

The average cost for re-loading a prepaid debit card is around $5.00, so be sure that you have added enough funds to cut down on repeat re-loading.
You can access funds from prepaid debit cards only with your PIN number. Make sure that you change it often and never disclose your PIN number to anyone. The best way is that if you have your bank or the company where you obtain the card to put a daily maximum on it in case your card is ever stolen or in the rare instance that someone is able to obtain your PIN number.

The most important thing to take under consideration is that the advantages of prepaid debit cards far outweigh the disadvantages; they are good for everyone, especially for those who cannot fulfill the criteria to obtain credit cards due to their poor credit history. But don’t forget one thing that, prepaid debit cards also have to be used responsibly, just as any other card. You can easily load them time after time until your bank funds are reduced to none. Make it sure that you are keeping the records of your purchases to prevent this type of catastrophe.

People who liked this Post also read

Credit, ATM and Debit Cards: what to do if they are stolen or lost

R. MAK. — Sun, 26 Apr 2009 22:19:00 +0000

ATM, Credit and debit cards provide a convenient and easy way to use money without the hassle of carrying a great amount of cash in hand. In case the cards are stolen or lost, The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) provide the procedures to act upon.

How to Limit the Financial Loss

As soon as you discover that the ATM, debit or credit card is missing, contact the card issuer. Most of the companies have a 24-hour help service for such issues. Report your loss to the customer service representative and then follow up by writing a letter to the company including your account number and the date on which you reported the missing card.

It may by helpful to check whether your homeowner’s insurance policy covers the card theft. If not, some insurance companies do allow you to change your policy to include this.

Credit Card Loss or Fraudulent Charges (FCBA):

In case you report about the missing card before it is used by someone else, the FCBA states that the card issuer cannot charge you for any unauthorized use. On the other hand, if the card has been used before you reported, the maximum charges laid against you can be $50 per card. If the card number has been used only, without the card itself, you cannot be held responsible for any charges.

Also, review the bills carefully that come after the card has been lost. If you find any unauthorized use, write a letter to the card issuer including all the questionable charges, your account number, and the date on which you reported the card missing. Send this letter to the billing complaints department rather than the billing department itself, and do not send any payments unless you are requested to do so.

ATM or Debit Card Loss or Fraudulent Transfers (EFTA):

According to EFTA, if you report your ATM or debit card missing before it used by an unauthorized person, you cannot be held responsible for any charges. But in case it happens before you report the loss to the card issuer, then according to the federal law, your liability depends upon how soon you report the missing card.

For example, if you report the missing card within two business days, the maximum charges that can be laid against you cannot be more than $50. But if you report your card any later than two working days, you can loose up to $500 due to an unauthorized transfer. In case you don’t report the loss after 60 days of receiving the bank statement showing unauthorized use, you could be held responsible for unlimited amount or the your whole bank balance, or even the unused portion of your line of credit for overdrafts. However, if the unauthorized transfer includes only the debit card number and not the card itself, you can be held responsible for only 60 days transactions that occur after you receive the bank statement mailed to you and before the report of loss. In case you notice any unauthorized transfers on your bank statement, inform the card issuer immediately. Once the loss of your ATM or debit card has been reported, you cannot be held responsible for any unauthorized transfers that occur.

Protecting your Cards:

The only way your cards can be truly protected is if your keep them safe, always knowing where they are, and in case of a Personal Identification Number(PIN) being used, hide the PIN number efficiently. Do not use your phone number, birthday, home address or social security number as your PIN as they are easily detectable. Memorize your PIN number and so change it after some time to make it more secure.

Some of the ways in which you can protect your cards can be:

For Credit, ATM and Debit Cards:

Be very careful about giving your account number over the phone unless you know you are talking to an authorized person.
Do not write your account number on top of any envelope or postcard.
Cancel the blank spaces on the charge or debit slips above the amount by drawing a line so that the amount cannot be changed.
Never sign a blank charge or debit slip.
Only save the receipts and discard the carbons, to check against your monthly bills.
Always throw your old cards after cutting them into half; cutting through the account number.
Check your monthly bills against the receipts in time, and inform the card issuer of any unauthorized use immediately. According to FCBA and EFTA, the card issuer is enforced to investigate the unauthorized use within 60 days after you receive the bill.
Keep a record of your account numbers, expiration dates, and the telephone numbers of the card issuers so that you can report the card lost immediately and keep this record separate from the cards.
Do not carry all the cards with you; carry only those which you think you will require at the time.

For ATM or Debit Cards:

Do not carry you PIN in your valet or purse and do not write it on your ATM or debit card.
Do not write your PIN on any paper such as an envelope, a deposit slip or any other paper that can be lost easily.
Carefully check your ATM or Debit card transactions before you enter the PIN or sign the receipt, as after you enter the PIN or sign, the amount will be deducted from your account.
Check your account activity at regular intervals specially if you bank online. Compare your recent withdrawals or transactions with your receipts and inform any kind of discrepancies to the card issuer immediately.

Buying a Registration Service

Some companies provide you the service of informing the card issuers of the card loss and request for a new one on your behalf for a fixed amount of annual fee. You will have to make a single call and they will report to all the missing cards issuers. But it is not compulsory to avail such offers as FCBA and EFTA gives you the right to contact the card issuer directly in case of loss or in case you suspect a discrepancy.

In case you do decide to buy a registration, compare and choose the offers carefully to determine the best one. For example, if you report a loss to the company and they fail to report it to the card owner in time, will they compensate for the loss.

For More Information

The following federal agencies are responsible for enforcing federal laws that govern credit card and ATM or debit card transactions. Questions concerning a particular card issuer should be directed to the enforcement agency responsible for that issuer.

Board of Governors of the Federal Reserve System
Regulates state-chartered banks that are members of the Federal Reserve System, bank holding companies, and branches of foreign banks:
Division of Consumer and Community Affairs, Stop 801
20th and C Streets, NW
Washington, DC 20551
202-452-3693
www.federalreserve.gov

Federal Deposit Insurance Corporation
Regulates state-chartered banks that are not members of the Federal Reserve System:
Division of Compliance and Consumer Affairs
550 17th Street, NW
Washington, DC 20429
877-ASK-FDIC (275-3342) toll-free
www.fdic.gov

National Credit Union Administration
Regulates federally chartered credit unions:
Office of Public and Congressional Affairs
1775 Duke Street
Alexandria, VA 22314-3428
703-518-6330
www.ncua.gov

Office of the Comptroller of the Currency
Regulates banks with “national” in the name or “N.A.” after the name:
Office of the Ombudsman
Customer Assistance Group
1301 McKinney Street, Suite 3710
Houston, TX 77010
800-613-6743 toll-free
www.occ.treas.gov

Office of Thrift Supervision
Regulates federal savings and loan associations and federal savings banks:
Consumer Programs
1700 G Street, NW
Washington, DC 20552
800-842-6929 toll-free
www.ots.treas.gov

Federal Trade Commission
Regulates other credit card and debit card issuers:
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
877-FTC-HELP (382-4357) toll-free
www.ftc.gov

People who liked this Post also read

The Answers to 7 Mysteries of ATM Machines

R. MAK. — Tue, 03 Mar 2009 00:17:58 +0000

In my previous post, I talked about how 7 questions about ATMs bother me alot. So I did bit of a research to get these answer. The answers below are true to the best of my ability, however on some of them the answer just isn’t there to be found so I had to go on speculation. May be you can help me on this.

Question 1: Why do ATMs allow you to enter the amount you wish to withdraw in penny increments?

Answer: It appears to be for consistency sake. When you make a deposit you can enter a decimal amount, so they provide that option for withdrawals as well to keep the input format consistent.

Question 2: Why do drive up ATMs have Braille?

Answer: The primary reason is legal compliance. The Americans with Disabilities Act requires all ATMs to be accessible by the blind. You may think this is one of those stupid laws in the case of drive-up ATMs, but there actually are some good scenarios where the Braille would be needed. The main one that comes to mind is for when a blind customer is in a cab and needs to get cash. I know I sure don’t want to give my card and PIN to a random cab driver!

Question 3: What does the Braille say?

Answer: All ATMs are designed differently but on most the Braille options are just the numeric values for the 10 key and alpha values for the option buttons. For the years blind customers had to memorize the keystroke sequence. Fortunately newer ATMs have headphone jacks which provide audio instructions.

Question 4: What’s with the $2.50 or more fee you have to pay when using an ATM from another bank?

Answer: In short because they can. Most people are surprised to learn that the primary source of income for many banks isn’t the interest they make from loans or from investment commissions, but from charging fees. Overdraft fees, refinancing fees and yes ATM fees. It has become a significant source of income for banks over the past decade and rates continue to rise. Of course customer frustration with this also continues to rise and many customers have begun switching banks. As a result some banks have stopped charging fees and certain online only banks have gone as far as reimbursing their customers for the fees the other bank charges when using a foreign ATM.

Question 5: Is the “Fast Cash” option really any quicker?

Answer: It’s not faster for me, but then again I’m pretty quick with 10-key and usually want $50 which is not on the menu. However, not everyone is 10-key proficient and are many are ok with taking a $20 increment. It has an added benefit of encouraging you to get a $20 increment which allows the bank to more efficiently pack the ATM with mostly $20 bills.

Question 6: Why are PINs 4 digits?

Answer: Old standards are hard to change. Even if your bank decided to install a full keyboard and allow alpha-numeric, you’re going to have a real problem when you go to foreign ATM that still only accepts 4 digit numeric and try to get your money out. What incentive does any bank have to be the first to offer this? There’s also some interesting standards around how ATM pins work that would have to be changed. We’ll talk more about this in a later post.

Question 7: What do you do if the ATM give you the wrong amount?

Answer: In theory they should be able to count the cash remaining in the machine and find the difference. Even if not, if you’re a good customer and they don’t have any other reason to suspect fraud from you, they’ll usually just give you the benefit of the doubt to keep you as a customer. If all else fails a call to your local TV station should get the problem solved for you.

People who liked this Post also read

Is This Your ATM Receipt?

R. MAK. — Sun, 01 Mar 2009 20:05:59 +0000

Last year in may, I was on a business trip to New York City. I went to a CHASE ATM. I followed the drill, made a withdrawal for a petty amount, just enough to cover my lunch.

As I was throwing away my ATM Receipt, A shiny little paper caught my eyes. Out of sheer curiosity, I picked up that paper. It belonged to someone who just arrived and left before me and made a small withdrawal of $800.00 USD only.

What a lucky person he or she must be to have a checking account like this one. To this day, I have kept this little ATM withdrawal receipt as a little motivation to save money.

But in fact this actually seem to be mocking me. With an account balance like this, I can have a great time for 3 to 4 years. It was really a miss that I did not get to see the person who left it there but if I had I would have hit them up for a loan.

Is this your ATM receipt? You only wish! don’t you?

Technorati Tags: atm,atm receipt,atm withdrawal,checking account,CHASE,CHASE ATM,new york

People who liked this Post also read

7 mysteries about ATM Machines

R. MAK. — Sun, 01 Mar 2009 05:38:30 +0000

If you have used ATMs for considerable time, you must be aware of those unsolved mysteries that you never quite understand about ATM Machines. Some of them are plain funny curiosities while other are really strange and we all need to know the answers to them.

I have spoken to a few people regarding these and found out that I am not the only person confused about ATM machines. So, I embarked on a little research to find out answers to these questions. I call them 7 mysteries about ATM Machines aka seven wonders of ATM World. I will post answers to these question in my next post.

The ATM Mysteries

Why do ATMs allow you to enter the amount you wish to withdraw in penny increments? If I type in I want $53.28 it’s not like it’s going to shoot a quarter and three pennies out of the bill changer. Pretty much all ATMs only give out cash in $10 or $20 increments so I won’t even get the three ones! Why not just type in the dollar amount? It sure would be a lot simpler.
Why do drive up ATMs have Braille? This is a common wise-crack many people have made. The rationale is blind people shouldn’t be driving, and there’s warning on most drive up ATMs telling you not to walk up and use them, so why have Braille.
What does the Braille say? This isn’t one I’ve heard any one else ask, but I think the better question than why do the drive up ATMs have Braille is what could it possibly say next to those buttons? The function of the buttons change with every screen. In recent years they added headphone jacks that probably solve this problem, but for years they didn’t. So what do the buttons say?
What’s with the $2.50 or more fee you have to pay when using an ATM from another bank? I can almost understand the $1.50 fee the foreign banks ATM charges you for using their machine, but why does your own bank charge you another dollar. They don’t charge you when you use that same card to pay for something at a store so why is it any different when you use an ATM. The $1.50 seems high too, especially when you only take out $20. A merchant is only charged around 30 cents on average to make that same $20 purchase on your check card.
Is the “Fast Cash” option really any quicker? I don’t think so. I rather skip that screen all together and just go to the 10 key. It takes me longer to search for the dollar amount on the Fast Cash screen and try to figure out which button it almost lines up to than to just type it in. Also the inputs are usually in $20 increments so I have to go to the 10 key anyways to get my $50 out of the machine.
Why are PINs 4 digits? It seems backwards that my email provide feels it’s necessary to secure my account with a password that is at least 8 characters, alpha numeric, has at least one upper and lower case letter and at least one number, yet my bank it feels four numeric characters will suffice. It’s 1 in 10,000 pretty good odds of guessing someone’s pin? If you consider that most people use some sort of date as their pin in MMDD format, you’re down to 1 in 365 odds.
What do you do if the ATM give you the wrong amount? There’s usually a number to call on the ATM, but how do you go about proving you got the wrong amount.

I would be posting answers I found about these questions in my next post so It is a good idea to Subscribe to My RSS Feed to get notified when I post next.

Technorati Tags: atm,atm machine,drive up atm,atm charges,atm fees,fast cash,atm pin,atm mysteries