10 Ways to Avoid the Newly Introduced N65 ATM Charges in Nigeria

Wednesday, 10 September 2014

The recent development in the Nigerian Banking Sector in collaboration with the Apex Bank demands that the sum of N65 charge be placed on remote-on-us ATM withdrawals. Accordingly, the terms of this policy implementation stipulate that Nigerians and visitors who are resident in Nigeria will henceforth be charged Sixty Five Naira from the 1st of September when the card holder (ATM user) performs transaction at ATM outlets other than that of his bank for the fourth time in a particular month.

These are the things you need to understand


How the Charges Work
If you use ATM outlets of your bank (even up to 100 times in a month), you will not pay anything). i.e. All ATM withdrawals and transactions on the ATM dispensing unit of issuing banks shall be free to the card holder. 

If you use another bank’s ATM for 3 times a month, you will not pay any charge (first 3 transactions are free). 

If you use other bank’s ATM for more than 3 times, hey! N65 will be deducted from your account at every transaction.

Effects of the N65 Charges
I think this policy is typically one-sided which favours only the banks at the expense of their customers.
The Policy will increase long queues at different ATM dispensing outlets. 

However, if you find yourself in a situation where your bank’s ATM outlet is not around you, paying the purported N65 in by using the next available bank’s ATM outlet is not a big deal.

#1.          Avoid patronizing other bank’s ATM
As a prudent move, you don’t have any choice than to dump the use of other bank’s ATM outlets if you must avoid paying the newly introduced N65 charges. 

Make it a habit to patronize your bank’s ATM: You will not be charged any fee if you use your card on your Bank’s ATM outlets. For instance, if you are banking with Zenith Bank, you will not pay the said N65 if you consecutively use Zenith Bank’s ATM outlets for as many transactions as you wish to in a month. This also applies to other banks.

Although most bank customers who mainly comprise the general middle and low income earners in the country have expressed displeasure over this latest trend, the Central Bank of Nigeria had gone ahead to enforce the policy explaining that it would engineer competition among banks. I don’t know how that concerns us.

#2.          Adopt the “Rat” strategy and don’t get caught
This is very simple; if you are banking with GTB, you have to try and stick to withdrawing from GTB’s ATM dispensing unit while you reserve the other remaining 3 chances on remote-on-us-ATMs (other banks). In other words, stick to your bank ATM come rain and shine, and they will not eat your N65. What I mean is that you use other bank’s ATM dispensing unit sparingly. Remember, you have a maximum of three (3) free withdrawals in a month reserved for other bank’s ATMs, all you need to do is – restrict your patronage of other bank’s ATMs while you reserve the opportunity to when it’s absolutely necessary (as a last resort).

#3.          Adopt Internet based or Mobile Money Banking
This is a great way to avoid using ATMs and falling a victim to the purported N65 charge. You can simply get mobile money or any other banking app installed on your smart phone and you are good to go. With the app, you always have access to your money which makes it possible for you to perform your basic banking transaction such as – paying bills, money wire, bank transfer etc. Hey! before you decide to go online, note that you may also need to pay a service on some of the services rendered by your bank.

#4.          Pay direct with your card
Your ATM card has the inbuilt functionality of performing certain transactions right at the Point of Sale (POS). Fortunately, many shops and retail outlets in the country are now equipped with POS machines. So instead of getting cash from ATMs, just pay on the POS with your cards. Paying on POS cost nothing at all while some banks such as Zenith bank even give a discount when you use POS. This way, you can definitely avoid the new ATM charges.

#5.          Make Appropriate Plans for your cash flow
I think it’s time to effectively plan your cash flow. You don’t need to wait until you’re broke before you withdraw money from the ATM. plan your expenses 2 to 3 days ahead (in advance) so that you may not be forced to use another bank’s ATM. if you are withdrawing cash, endeavour to take out more than what you require for immediate use. plan your expenses in the next 8-10 day and make withdrawals accordingly.

#6.          Patronize on-the-counter withdrawals
If you want to avoid the new N65 charges, you may need to withdraw your money from the counter. Simply visit your bank with your withdrawal booklet, fill in the amount you need and get paid by the cashier.

#7.          Make “Saving” a habit
Take more cash but always remember to remain some for emergencies. A fixed fee of N65 per transaction might look so insignificant, but you may be shocked to realize that spend drifts may end up paying so much within a month. To avoid this, you may need to withdraw more cash at a time and remain some for exigencies. You may need to purchase a domestic cash saving box to enable you save at home. This way, you can stay away from the ATM regularly. So if you find yourself using ATM outlets regularly, endeavour to make large withdrawals at once so that you don’t make numerous trips at random.

#8.          Open and Fund more than 3 accounts
Yes! They thin k we are idiot? Of course we are smarter than them. To avoid payment of the N65 charge, open and fund up to 6 accounts in six different popular banks in Nigeria. There is no offence in having multiple accounts if you can fund them (even if you want to run 50 accounts). Go ahead and fund these accounts. You’ll now have like 5 ATM cards which automatically make you a bonafide ATM user for several banks. From this way, you’ll never pay the N65.

#9.          Ask Questions
Do you know that even though the N65 fee policy is in vogue, no ATM outlets will inform the user that he will be charged? You don’t need to wait until you’re being told – ask lots of questions to get clarification. That’s why the customer relation officers are there at the bank.

#10.       Spread the News
The problem our people have is lack of information. Majority of Nigerian ATM user loses money they are a not even aware of. So, spread the news and teach other people on how to stay save during transactions.   One of the way to share this information is to use the sharing buttons below.   

Summary
I am not personally against ATM fees. Do you know why? Am a beneficiary of the convenience provided by ATM outlets. This does not mean that you should not try and reduce certain expenses. The strategies listed above have been of great help to me personally. I can say that am not paying the N65 charge since it was introduced. Just give it a try and you see how much you would’ve saved in one year.
If this article has been of help to you, please comment and share! Thank you

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