Be careful with ATMs overseas
When you live overseas, there’s a problem you need to be aware of with some ATMs.
Many expats use ATMs to withdraw the maximum amount of cash from their home bank account. Then they have their spending cash for the next week or so.
However, you may use your card at an ATM, get a receipt that says your withdrawal was successful, but never get the money. The ATM might also give you an error message, saying the transaction wasn’t completed. However, if you check your bank account online later, you’ll see the money is gone from your account.
Now you need to deal with your bank back home, along with the local bank (which isn’t fun if you don’t speak the local language). One expat had this happen so many times that his bank lowered the maximum amount of money he could withdraw per day.
This isn’t necessarily the bank trying to steal your money. As a former programmer, I can tell you that any program (including what is running at the ATM and at your bank) can have a problem. If the program needs to manage something mechanical, like handing out cash, there are more potential places for problems. Add in a few thousand miles between the computers trying to talk to each other, and the odds of something going wrong increase.
I’ve heard about this happening in Panama and Paraguay, and it almost certainly happens elsewhere.
How to reduce the chance of problems with overseas ATMs
- Use the ATMs of large, international banks. They’re more likely to have good equipment in place. If you do have any problems, they may also have a better process to solve them.
- If there aren’t any big banks around, use the largest, busiest store or shopping mall. They want their ATMs to work, so people can spend their money with them. So there’s a good chance they have good equipment and pay attention to problems.
- Make a few small, test withdrawals. This may cause you to spend a little bit more in transaction fees. But it also minimizes your loss, if you do have a problem. Once you feel comfortable with a specific ATM, use it for your larger withdrawals.
- Don’t wait until you’re almost out of cash before you go to the ATM. You don’t’ want to be out of cash on the day your rent is due.
- Have a backup plan in place. If you suddenly can’t use your ATM card, do you have one from a second account at another bank to use? Do you have someone back home who can quickly send you money by wire or Western Union?
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