Bank of america credit card atm fee

What is an ATM card?

ATMs or Automated Teller Machines are mostly used to withdraw cash. If a bank allows it, you can also make deposits into an account during and outside regular business banking hours. This card can only be used at ATMs and requires a PIN (Personal Identification Number).

All withdrawals using an ATM card are immediately deducted from the customer’s account.

If a card is lost or stolen and the consumer reports it before any fraudulent charges are made, there is no liability. If a missing card is reported within 2 days of fraudulent activity, then the maximum liability is $50.

If a card is reported lost or stolen more than 2 days but less than 60 days after it is missing, the consumer can be held liable for up to $500 of the loss. After 60 days, the consumer can be held responsible for the entire amount that is missing from their account, as well as any accounts that might be linked to it.

But my ATM has a Visa or MasterCard logo, what does that mean?

This is the most confusing type of card. This card can be used as an ATM card or at the point of purchase as a debit card or credit card. No matter how the card is used, it will be automatically deducted from your checking account.

If the card is used as a debit card, a PIN is usually requested. The purchase is immediately deducted from your checking account.

If the card is swiped and credit is chosen at the register, a PIN is usually not required. In this case, even though it was swiped as a credit card, it is still considered a debit card transaction. While it may take a few days, the purchase price will be deducted automatically from your checking account. 

Remember, whether a debit card is swiped as a debit or credit transaction, the purchase will be automatically deducted from the consumer’s checking account, but it could take a few days for a credit transaction to clear your account. That means it’s up to you to keep a mental record of the transaction and deduct it from your checking account balance the day of the purchase until the withdrawal has been made from your account.

Otherwise, you risk causing an overdraft on your checking account.

Visa and Mastercard branded debit cards have the same deadlines as ATM cards for reporting fraudulent activity: if reported within 2 days, the maximum liability is $50. After 2 days, the liability increases to $500. If the consumer waits 60 days, then they may lose their entire account plus any linked accounts. 

What is a credit card?

Credit cards allow a consumer to purchase goods and services by borrowing against an approved line of credit. It is a loan. Purchases made during the month are billed to the credit card holder, and you will pay the bill at a later date.  

Should you be unable to pay the entire balance due, then the credit card company charges you interest.

If the payment is late, the credit card company may also charge late fees and revoke promotional interest rates.

Unlike an ATM or ATM/Debit cards, all charges, as well as any cash advances, are not automatically deducted from your checking account, unless specific arrangements are made through the bank.

Credit cards carry some additional protections that debit and ATM cards do not have. If a credit card is lost or stolen, under the Fair Credit Billing Act, the maximum liability is $50. If the missing card is reported before any fraudulent charges are made, there is no liability at all. 

* When purchasing, you must choose whether the transaction will be a debit or credit transaction.  If it is swiped as a credit card transaction, the money may not be deducted for several days.

When you're in need of cash, whether it's from an unexpected expense or a sudden job loss, heading to the ATM and withdrawing money from your credit card sounds like a quick fix.

This is called a cash advance, and although many credit cards allow you to do this, the negative financial consequences should make you think twice.

Below, Select explains what exactly it means to use your credit card to borrow cash as an advance, and why it's not worth it.

How cash advances work

Cash advances let cardholders borrow money against their card's line of credit. They essentially act as a short-term loan and can be accessed by withdrawing cash at an ATM with your credit card's PIN number, by requesting one in-person at your bank or by writing a convenience check (if your card provides them) to yourself and then cashing or depositing it.

You can check your credit card statement or call your card issuer to find out your cash advance limit.

Why they aren't recommended

 Here are two reasons why experts don't recommend cash advances.

1. They're very expensive

The cost to withdraw money from a credit card can add up quickly. Since you are borrowing the money rather than withdrawing like you normally would from a checking account, the credit card company will charge you fees and interest rates until you pay back the loan. And unlike having at least 21 days to pay off a credit card purchase in full before incurring interest, there is no grace period for cash advances. That means you will be charged interest starting from the date you withdraw a cash advance.

The fees to consider on cash advances are the monthly payment, the interest rate on that monthly payment, the cash advance fee (usually 3% or 5% of the total amount of each cash advance you request) and the ATM or bank fee (depending on what method you choose). Keep in mind that the interest rates for cash advances are usually steeper than the rate you pay on purchases or balance transfers.

For example, the Blue Cash Preferred® Card from American Express (which requires good or excellent credit and ranked as Select's best credit card for grocery shopping) has a variable APR of 16.99% - 27.99% on purchases, but a 28.24%APR on cash advances (see rates and fees). Terms apply. But on a card such as the Capital One QuicksilverOne Cash Rewards Credit Card (which is a good choice for fair and average credit applicants to earn cash back), the APR on purchases and balance transfers is the same as the cash advance APR: 28.49%%.

2. They can impact your credit score: Cash advances from your credit card won't show up on your credit report as their own line item, but they can harm your credit score if the amount you withdraw causes the percentage of available credit you're using, also known as your credit utilization rate, to increase. This could tell lenders that you are using more credit than you should while not paying it off.

For rates and fees of the Blue Cash Preferred® Card from American Express, click here.

Information about the Capital One QuicksilverOne Cash Rewards Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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