By: Alinda Ronnie Kyamureku
Introduction
Automated teller machines (ATMs) have been in use globally since the 1970s, reducing the need to transact at the bank counter. Remember having to withdraw large amounts of money in advance for long holidays like Easter or Christmas in the 1980s in Uganda, which would pose risks of security and poor spending? ATMs revolutionized banking in terms of increased access to banks beyond the closing hours and holidays. Today, ATMs provide more services than just withdrawal of money, and this has introduced new risks such as fraud, theft, and cyber-related crimes. In this article, we look at the basics of using ATMs securely.
What is an ATM?
The ATM, or automated teller machine in full, is a self-service banking terminal that allows you to perform a range of financial transactions. ATM services vary by bank, but they generally include cash withdrawals and deposits, balance inquiries, issuance of mini statements, cash transfer, payment of bills, and even buying mobile phone airtime. ATMs are normally accessed with a debit card which enables you to transact on your bank account. Recent innovation has also introduced cardless services where customers are able to complete bank transactions without the need of a debit card.
Some Safety Tips
1. ATMs have security features. Banks have tried to design ATMs to provide customers with privacy and security. The keyboard is placed in such a way that it is visible only to the person using the ATM to prevent onlookers from accessing your personal identification number (PIN) details. Banks also place cameras in the ATM and around the ATM location to watch for fraudulent and suspicious activity.
2. Find a safe location. ATMs are conveniently found at various sites, including outside commercial bank branches, shopping centres, and petrol stations, where security is typically good. Although banks strive to find the most convenient and safe places to place their ATM machines, your personal safety may be compromised based on the type of transaction you wish to make or the time of day you access the ATM. Therefore, it is essential to choose ATMs situated in well-lit and secure areas. These ATMs are less likely to be targeted or tampered with because of the constant surveillance.
3. Keep your personal information secure. Take extra caution to protect your card PIN to reduce the chances of your account being illegally accessed if your card is stolen or lost. Do not accept help from strangers when using the ATM. If you need help, call your bank or visit your nearest branch. Do not share your PIN, write it in your diary or phone, or use a very simple PIN like 0000 or your birthday which can be easily guessed. You should also change your PIN regularly for added security.
4. Confirm your transactions. When withdrawing money from an ATM, count your money to ensure that the machine has given you the desired amount, and take a receipt as proof of the transaction. Note that the machine will not allow you to withdraw an amount that is greater than your account balance or drops below your minimum account balance. Contact your bank immediately if the ATM gives you other than what you requested and present the receipt to help with the investigations.
When depositing using an ATM, confirm important details of the account you are depositing into like the account name and number. Confirm that you have deposited the correct amount before you finalise the transaction and take a receipt as proof of the transaction.
5. Report a lost or stolen card. If your card gets stolen or lost, please notify your bank as soon as possible to disable your bank card to prevent illegal access to your bank account through ATM, online and point-of-sale transactions.
6. If you face any issues while using an ATM, such as a stuck card or a transaction error, do not panic. While this may occur because of specific factors like an expired debit card, or entering an incorrect PIN multiple times, the bank is able to rectify the problem promptly to reduce inconvenience to the customers. Most ATMs have a contact number for customer support displayed on the machine, which will get you in touch with the bank’s customer support.
Using ATMs to Withdraw Foreign Currency
For domestic withdrawals of foreign currency within Uganda, it is usually necessary to have a foreign currency account. However, some banks offer the possibility of withdrawing foreign currency against a Uganda shilling account. Note that the associated conversion rates may be less favourable than those offered by foreign exchange bureaus.
Using ATMs When Travelling Abroad
Most debit cards issued by Ugandan banks allow customers to use ATMs of foreign banks while travelling abroad. It is important to use an ATM associated with the same service provider of your debit card, for example, Visa or Mastercard, to avoid high transaction fees. You should also note that there may be hidden fees when withdrawing money from a foreign ATM, including ATM service fees and currency conversion fees. Therefore, it is advisable to ensure your card is enabled for international use, check exchange rates, and compare the fees charged by different banks and ATMs before making a withdrawal. Check your bank’s tariff guide for the charges on using other banks’ ATMs and ATMs abroad. When travelling internationally, it is ideal to notify your bank of your travel plans to prevent card suspension due to suspicious activity.
Conclusion
Using an ATM safely improves your overall banking experience. As you embark on your ATM journey, remember that Simply Mint is here to educate and guide you in the world of financial services. To gain a more comprehensive understanding of ATM charges, visit our bank charges comparison tables.