In today’s era, an ATM card is very important, but it is equally important to know the charges associated with it and choose the option wisely. If you are unknowingly paying fees every year, then this news is for you. Most of us use ATM cards, but do you know that money is deducted from your account every year for this? Yes, the use of an ATM card is not free at all. For this, banks charge you every year and also levy GST. If you withdraw cash from an ATM repeatedly, then you have to pay a separate fee if the limit is exceeded. Let us know how much charge is levied on the ATM card (ATM Card Charges), why it is levied, and how you can avoid it.
How much charge is levied on an ATM card, know full details
Every bank gives an ATM card to its customers and, in return, charges a fixed fee every year in the name of an annual maintenance charge (Annual Maintenance Charge – AMC). This charge may vary according to the category and service of the card. The AMC of some ATM cards can range from ₹0 to ₹2000. Along with this, GST of up to 18% is also levied. Many private banks also offer customized debit cards, which have even higher charges. This fee is automatically deducted from your bank account every year, whether you use the card or not.
Why is there a charge on an ATM card? Understand the real reason
When you get an ATM card, you get many types of services through it, such as – cash withdrawal, online payment, text message alerts, email notifications etc. Banks charge AMC and GST to keep these services running and organized. This is a kind of price for using these services. Banks maintain the ATM network with these charges and provide safe transactions to customers.
Know the easy solution
If you do not want AMC to be charged to you every year, then you also have this option. Banks offer some basic debit cards on which no AMC is charged. These cards are meant for basic purposes like cash withdrawals. But banks usually don’t inform you about these cards. For this, you have to go to the bank yourself and ask if you want a basic ATM card without an annual fee. You can avoid these charges by being a conscious customer.
What if you have an ATM card but don’t use it
Many people think that if they have an ATM card but don’t use it, there won’t be any charges. But this is not true. Whether you use the card or not, if you have an active card, AMC and GST will be deducted from it every year. In such a situation, if you don’t use the ATM card, it would be better if you get it closed from the bank or choose a card without charges. Banks keep charging even on inactive cards, so it is wise to get it closed.