An ATM is an automated teller machine, an electronic banking device that allows you to complete various transactions without the assistance of a bank employee. If you have a bank card that's linked to a chequing account or other bank accounts, you're able to use an ATM.
These convenient machines are at nearly all bank branch locations as well as multiple other places in cities and communities throughout Canada and abroad. You'll also find independently owned ATMs in many corner stores, gas stations, and many other easily accessible locations.
Understanding how to use these machines to your advantage is key to making smart financial choices. Here, we explain how to use ATMs in Canada, what exactly they can do, their associated limits and fees, and much more.
Key Takeaways
- ATMs are automated teller machines that use your debit card to access your bank accounts and complete transactions.
- You can use an ATM to deposit money, withdraw money, check account balances, and several other types of transactions.
- There are various fees involved with using an ATM that are typically determined and levied by your bank.
- Banks impose per-use and daily limits regarding how much you can withdraw from an ATM.
How to use an ATM
There are 6 basic steps that everyone using an ATM follows, whatever their purpose may be. They begin with inserting a debit card and finish with removing the card. The final step is very important because forgetting your card and walking away can leave you vulnerable to theft and fraud.
Here are the 6 steps and what they entail:
- Input your card: Each ATM has a card slot somewhere on the machine, usually located on the right side of its face. You'll probably only have to push your card in part way and the machine will feed it the rest of the way in.
- Enter PIN: The screen will prompt you to enter your PIN (personal identification number) in order to confirm that you're the account holder and authorized to make transactions.
- Select transaction: You'll see a menu of options (more on these later), including depositing cash, withdrawing cash, paying bills, etc. Simply choose the task you want to complete.
- Follow the instructions: Whatever type of transaction you've chosen, you'll see prompts for each step required. If you're withdrawing cash, for instance, you'll be prompted to enter the amount you require, which account it should be debited from, and the denomination of bills you'd like to receive.
- Confirm the transaction is complete: The screen will prompt you and ask if you'd like to conduct another transaction or if your business is complete. You can select the "complete" option or "another transaction," whatever the case may be. If you choose to initiate another transaction, you can follow the on-screen instructions as before.
- Collect your card: The machine will dispense your bank card out so you can retrieve it, as well as any cash you requested. Some machines will also automatically print a receipt that details your transactions and provides your account balances, while other machines will ask whether or not you require this.
Types of ATMs
The 2 types of ATMs in Canada are simply known as "basic" and "complex" machines. As you might guess, one gives you limited options while the other allows you to complete more involved transactions.
A basic ATM allows you to check your balance, withdraw cash, and perhaps a few other simple transactions. These machines are typically independently owned and operated, not affiliated with any specific bank or institution.
On the other hand, a complex ATM not only gives you more options than a basic machine, but the options are more detailed as well. This can include tasks like making payments on a line of credit, transferring funds, etc.
Most of the time, the branding on an automated teller machine makes it clear whether it's a bank affiliate or not. For instance, there are often BMO ATMs in Sobeys grocery stores and TD machines in many Ultramar Corner Stores, and the bank's branding is clearly visible on and near each ATM.
Some smaller banks and credit unions partner with larger ATM networks so their clients aren't restricted to the ATMs located in-branch. As an example, Laurentian Bank partners with THE EXCHANGE Network, allowing its clients access to machines all across the country and not just in Quebec where most of their operations take place.
Wherever you bank, be sure to understand any partnerships between your institution and an ATM network. This will help you avoid paying unnecessary fees.
Types of ATM transactions available
While many people use ATMs simply to withdraw cash or check their accounts, there are quite a few other transaction choices available. This list gives you an idea of the rather extensive options available to you with ATMs:
- Withdrawing cash: You can simply request the machine to dispense a specific amount of money.
- Withdrawing US funds: Some machines can dispense USD as well as CAD. There will likely be a max dollar limit available and the bills will be only certain denominations.
- Depositing money: ATMs can receive deposits of either cash or cheques, although funds may be held until the cheque clears.
- Transferring funds: You can move money between accounts as long as they're held with the same bank.
- Balance inquiries: Either on the screen or via a receipt, you can confirm the balance on any of your accounts linked to your debit card.
- Printing mini-statements: A receipt can be printed that lists account balances and any recent transactions, although this may incur a special fee.
- Paying bills: Some bank machines allow you to pay bills on-screen, but only those you've already linked to your chequing account (similar to online banking).
- Changing your PIN: While there is an option to change your PIN via the ATM, you'll need to know your PIN first. This can come in handy when you're concerned that your PIN has been compromised.
ATM fees
Yes, there are fees associated with using an automated teller machine, just as with most aspects of banking. ATMs can charge several types of fees, actually, including these:
- Network access fee: This is essentially a fee you'll pay for the convenience of using an ATM that's not affiliated with your own bank, but with another. For instance, if you hold BMO accounts but use your debit card at an RBC machine, BMO will charge you a network access fee.
- Convenience fee: Aside from the network access fee that your own bank will charge, an independently owned ATM will also charge you a convenience fee. This is sometimes called a "usage fee" or "non-customer surcharge."
- Foreign machine fee: If you're travelling somewhere outside of Canada, you'll likely be charged a foreign machine fee. This may or may not include any currency conversion costs and/or international transaction fees.
- Currency conversion fee: Using an ATM to withdraw funds in a different currency will incur a currency conversion fee. You'll only be charged this fee if you're outside of Canada and the USA since our ATMs don't usually dispense foreign funds.
- Transaction decline fee: In situations where you have insufficient funds to cover your transaction, the ATM may charge this fee.
ATM withdrawal fees from various banks
Here's a look at the ATM fees charged by Canada's big banks for using ATMs across Canada, in the USA, and in other countries around the world:
| Bank | Domestic ATM fee | US ATM fee | Global ATM fee | Accounts that waive all fees |
|---|---|---|---|---|
| BMO | $2 | $5 | $5 | BMO Premium Chequing Account |
| CIBC | $2 | $3 plus a 2.5% administration fee | $5 plus a 2.5% administration fee | CIBC Smart Plus Account |
| RBC | $2 | $3 | $5 | RBC VIP Banking |
| Scotiabank | $2 - $5 | $2 - $5 | $2 - $5 | Scotiabank Ultimate Package |
| TD | $2 | $3 | $5 | TD All-Inclusive Banking Plan |
However, some bank accounts include a set number of ATM uses or simply waive all related ATM fees. This means that the network access fee and possibly others will be credited by your bank, depending on whether your account's perks include both affiliated and non-affilated ATM usage.
One of the best chequing accounts that includes free ATM usage is the Scotiabank Ultimate Package. Its $30.95 monthly fee covers pretty much all of your ATM visits so you pay $0 for using non-affiliated machines in Canada, non-affiliated machines in the US, and all ATMs in other countries.
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- You may still be charged for non-Scotiabank ATM withdrawals
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Users are subject to per-use and daily limits on how much they can withdraw from an ATM. These limits aren't set by the teller machine itself but by the user's bank. Daily limits can range from $300 to $1,000.
ATM withdrawal limits will vary based on a few factors:
- the machine's network,
- your bank or financial institution,
- the type of account(s) you have,
- your banking history, and
- the geographic location of the ATM.
If you're travelling outside of Canada, you may find that the limits are different on international machines than they are on Canadian machines.
Increasing your ATM withdrawal limits
There is a possibility that your ATM limits can be changed, and the best and simplest way to do this is to call or go to a bank branch and directly make your request. Your bank will consider your history with them, the type of accounts you hold, and whether you want this increase to be temporary or permanent.
Withdrawal limits, whatever they may be, are important for security purposes. If your debit card is lost or stolen, you don't want anyone else to be able to use it and empty your accounts. Instead, they'll be limited to certain daily amounts and your bank can track when and where these transactions occur.
Staying safe and secure when using an ATM
It's an unfortunate reality that criminals target ATM users, but staying alert and following a few safety guidelines can minimize the risk and put you at ease. Here are a few tips to help keep you safe:
- Only use ATMs that are located in well-lit, secure, public places – especially at night.
- Be aware of your surroundings. If anything looks suspicious, try using a different machine in another location.
- Protect your PIN as best you can by using your hand or full body as a shield.
- Don't show or count the cash you withdraw or your receipt. Instead, secure it in your purse, wallet, etc., and wait to check it until you're in a safer location.
- Be sure your doors are locked, windows are up, and the engine is running any and every time you use a drive-through ATM.
- Be wary of card skimmers. These can be difficult to spot, but checking to see if the card reader slot feels loose, the keyboard feels odd, or anything else looks or feels unusual is good practice.
Do you use ATMs?
It can't be denied that ATMs provide excellent convenience and many of us depend on and use them regularly. Using an ATM can be quicker and easier than going into a bank and interacting with employees, making them an attractive alternative.
How about you, do you use ATMs often? What types of transactions do you use them for and why?
We love hearing from readers, so please share your experiences with us in the comments section below.
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.FAQ
What is an ATM?
An ATM is an automated teller machine where you can complete various banking transactions. Most, if not all, banks have their own ATMs for clients to use and there are others that are independently owned in various locations.
What does ATM mean?
ATM is an acronym that stands for "automated teller machine." These machines are also sometimes referred to as ABMs, which stands for "automated banking machine." Both of these terms refer to the same type of device.
What is an ATM withdrawal limit?
The withdrawal limits for ATMs in Canada will vary for each person, depending on their own banking details. A couple of factors that can affect this limit are the individual's account type and their current account balances.
Can you tell me how to use an ATM machine to deposit money?
Follow the basic steps for using an ATM until you're prompted to insert the money. Some machines require you to put your cash or cheque into an envelope (provided), while others prefer that you feed it directly into the machine.
How can I use an ATM with a credit card?
You can use your credit card to get a cash advance at an ATM and the process is the same as withdrawing cash from a bank account. Cash advances come with high interest rates and should be a last resort.
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