Finance: These distributors inflate your fees, beware!

Independent ATMs are on the rise, but they come with hidden fees that could be a drain on your budget. As traditional ATMs disappear, these new machines that aren’t affiliated with a bank are becoming more common. They may seem convenient, but they can add significantly to your banking fees. Here’s how to avoid these pitfalls and protect your finances.

ATM Finance

A response to the disappearance of bank ATMs

Since 2020, a new type of distributor has appeared on French territory, disrupting a banking landscape that was already undergoing major changes.

These ATMs, installed by private companies like Loomis or Brink's, are not tied to a particular bank. In just three years, their number has increased sixfold, from 121 in 2020 to 679 in 2023. This phenomenon is partly explained by the gradual disappearance of traditional ATMs.

Between 2022 and 2023, no fewer than 1,664 withdrawal points were closed in France, according to the Banque de France. This trend mainly affects sparsely populated areas, where banks are closing branches deemed unprofitable.

Although electronic payments are growing strongly, almost 50% of purchases in 2023 will still be made in cash.

To compensate for this lack, some municipalities are opting for these independent distributors, which are supposed to guarantee constant access to cash.

While this solution may seem advantageous at first glance, it hides a major problem: these ATMs are often much more expensive than those of traditional banks. Users must therefore be extra vigilant before using them.

Bank Fees: How These ATMs Can Affect Your Budget

One of the best-known companies in the field of independent distributors is Euronet. This name probably brings back bad memories to those who have already tried to withdraw money abroad: fees can reach 4.99 euros per transaction.

Although the prices are less exorbitant in France, these machines are not free. Indeed, making a withdrawal from a cash machine Euronet, Loomis or Brink's may incur bank fees called “improper withdrawal fees.”

What is a displaced withdrawal? This is a withdrawal made from an ATM that does not belong to your bank. Most banks allow a few free displaced withdrawals per month – often three. Beyond this threshold, they charge a fee.

For example, Société Générale charges 1.20 euros per additional withdrawal, while LCL charges 1.50 euros from the fourth withdrawal.

According to a study conducted by Panorabanques, fees related to displaced withdrawals increased by an average of 10.6% in 2024.

This is a significant increase, especially for people living in areas where independent distributors have become the only available option.

To avoid these costs, it is advisable to group withdrawals. Withdrawing larger amounts of money at once rather than multiplying small transactions helps to limit fees.

How to recognize these distributors and avoid them

Independent distributors, although useful in certain situations, can be easily identified. The “Euronet” logo is the best known, but others such as Loomis or Brink's are also present on the market.

These ATMs are often located in strategic locations, such as city centers or tourist areas, thus attracting unsuspecting users.

To avoid falling into the trap of additional costs, it is essential to adopt a few good practices.

First, clearly identify ATM logos before making a withdrawal. Favor ATMs affiliated with your bank when possible. Use banking apps to locate free ATMs nearby. Additionally, it may be a good idea to plan your withdrawals to maximize the free withdrawals offered by your bank each month.

Finally, while cash payments remain common, it may be worth considering alternative payment methods, such as bank cards or mobile payment solutions, to avoid having to use ATMs too often. Indeed, withdrawal fees, although often modest, can quickly add up and weigh heavily on your finances. Meanwhile, Louisiana says “yes” to Bitcoin to pay for public services!

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