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Debit Card Fees and How to Avoid Then

 Debit card fees will vary depending on the bank or financial institution you use. Here are some common debit card fees:

  1. ATM withdrawal fees: When you use an ATM that is not owned by your bank or financial institution, you may be charged a fee by both the ATM owner and your bank. This fee typically ranges from $2 to $5 per transaction.

  2. Foreign transaction fees: If you use your debit card to make purchases or withdraw money in a foreign country, you may be charged a fee by your bank or financial institution. This fee is typically a percentage of the transaction amount, ranging from 1% to 3%.

  3. Replacement card fees: If you lose your debit card or it gets stolen, you may be charged a fee to replace it. This fee can range from $5 to $25 depending on your bank or financial institution.

  4. Overdraft fees: If you spend more money than you have in your account, you may be charged an overdraft fee. This fee can be as high as $35 per transaction.  Ouch.

  5. Balance Check Fee:  Some ATMs will charge you a balance lookup fee if the ATM is not in the Bank's ATM network.


Tips to reduce these ATM fees:

  1. Choose a bank or financial institution that offers free ATM withdrawals. The Bank or Credit Union with the largest ATM Free Network would be my choice. Your choice of bank vs credit union can make a huge difference in your fees. Usually a large credit union in your region will have a large number of ATMs with no fee to use them.

  2. Take into consideration which network the ATMs that are at the locations you are likely to use belong to. Free use of an ATM can save you a lot.

  3. Keep track of your account balance and only spend what you have available in your account. Overdraft fees of $25 to $40 are common and will hit your wallet hard.

  4. Many cards will charge you a fee to check your balance even if you are not taking money from the ATM at that time. You can sign into your account from most smart phones and never pay this fee.

  5. Notify your bank or financial institution immediately if your card is lost or stolen to limit charges on your card that you may be held responsible for.

  6. Consider using a credit card for foreign transactions instead of a debit card, as many credit cards don't charge foreign transaction fees. Most of us do not spend a lot of time in foreign countries so this is not a big deal. However the fees levied on you for International use can be very expensive. Research this before your travel.


Personally I do not use the debit card that came with my checking account. I use one of my credit cards for all of my purchases as I get 1.5 to 5 cents back on my purchases with my credit cards. I pay off my credit card in full every month so the points I generate are a bonus.
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