Buzz
While cash might appear outdated in today's digital world (with fewer than 10% of Americans relying on it as their main payment method), it still holds significant value. Living a cash-only lifestyle is nearly impossible now, but during emergencies like power outages or network failures, cash remains indispensable. Even if you seldom use it, you likely own a debit card connected to your bank account and occasionally withdraw money from ATMs.
ATMs are generally dependable and safe, provided you follow basic safety measures and stay informed about the latest scams designed to steal your money. However, like any machine, ATMs can fail, and when they do, the impact can be severe, as it directly affects your finances. Issues like bounced checks or late fees can arise, leading to significant consequences. While you can't always foresee ATM issues, understanding potential problems and their solutions can help you stay prepared. Here’s a breakdown of common ATM mishaps and how to handle them.
What to do when an ATM dispenses an incorrect amount of cash
The most common use of ATMs is to withdraw money from personal accounts. Typically, this process is simple: insert or tap your card, enter your PIN, and follow the prompts to select your account and the desired amount.
However, if the ATM malfunctions, you might face one of two issues: receiving no cash or an excessive amount. While the latter might seem like a windfall, your bank will likely detect the error, potentially leading to penalties or even account closure. Whether you receive no cash or the wrong amount, it’s crucial to take immediate action.
Record the details of the incident. Note the time, capture photos of any error messages on the screen, and keep your receipt if available. If multiple ATMs are present, identify the specific one you used. Collect as much information as possible.
Notify your bank about the discrepancy. If you’re at your bank’s branch, inform the staff right away. Otherwise, contact your bank immediately to report the issue. Banks are legally obligated to investigate such claims, though you may need to complete forms and provide documentation. Stay near the ATM until you’ve reported the issue, especially if you suspect a scam.
Resolving these errors can take weeks. While your bank might temporarily credit your account, they aren’t required to do so until the investigation concludes, so plan accordingly in the short term.
What to do when an ATM mishandles your deposit
ATMs can also cause significant issues when you use them to deposit money—either by failing to credit your account after accepting cash or checks or by inaccurately counting the deposit. This isn’t just frustrating; it can lead to serious consequences like unpaid bills or payroll disruptions for small businesses. Here’s how to handle such situations:
Verify the amount. It might sound obvious, but many people skip counting cash before depositing it, trusting the machine to do it for them. Similarly, some don’t note check amounts, relying on the ATM’s scanner. Avoid this mistake: always know the exact amount you’re depositing.
Record and report. As with other issues, document everything—take photos, note the time, location, specific ATM, and deposit amount. Then, contact your bank immediately, either in person or by phone.
The bank will investigate, but ensure they review security footage to confirm your deposit. Banks may hesitate to do this for smaller amounts, so be prepared to advocate for yourself.
What to do when an ATM retains your card
While many ATMs now support contactless transactions using chipped cards or smartphones, some still use older systems where you insert your card, which is then read and returned. This older mechanism can sometimes malfunction, leading to your card being swallowed by the machine, creating a major inconvenience.
While having your card swallowed by an ATM is relatively minor on the scale of ATM issues, it’s still an inconvenience. Your first step should be to contact your bank to report the problem. From there, you’ll have two options to resolve the situation:
Request a replacement card. You can ask the bank to cancel the swallowed card and issue a new one. This is the safest option, as it prevents unauthorized use if the card is somehow retrieved by someone else before the bank can secure it. Visiting the bank in person might get you a new card immediately, but if you call, it could take seven to 10 days, leaving you without a debit card during that time.
Retrieve the original card. Alternatively, you can ask the bank to recover the card during their next ATM service and either mail it to you or hold it for pickup. This option is quicker and more convenient, but there’s a slight risk of the card being intercepted before the ATM is serviced.
When an ATM becomes an unintentional accomplice to fraud
Although ATMs are generally secure, they remain a target for fraudulent activities. Many scams rely on traditional techniques unrelated to the ATM itself, but compromised machines can still cause significant issues. Here are some ways fraudsters exploit ATMs:
Skimmers and shimmers. Criminals can attach fake card readers to ATMs that capture data from your card’s magnetic strip or chip while still allowing the transaction to proceed. Before using your card, inspect the reader—try to pull it off and check for any irregularities in color or texture.
Traps. Thieves may tamper with the ATM to trap cash or your card inside. Once you leave, they disable the trap and retrieve your money or card. Always stay near the ATM until you’ve reported any issues to ensure a record of the problem.
Cameras. Always shield the keypad when entering your PIN. Scammers often install hidden cameras to record your PIN, which, combined with a duplicated card, can compromise your account.
Tapping risks. For ATMs that allow contactless transactions, thieves may wait for you to leave. If you don’t manually end the session, they can make multiple withdrawals. Some banks may refuse reimbursement, claiming you authorized the transactions. Always ensure you properly log out before leaving.
