We have provided you guys with the top 6 atm disadvantages for banks and its customers in 2020 which will give you an insight about the automated teller machine
Automated teller machine (atm) is the best and fastest means of cash withdrawal, and we have about 300,000 ATMs in this country alone. Every bank have adopted the atm as we are now in the modern banking Era.
As the automated teller machine plays a huge important role in the banking industry, so it also has its own disadvantages both on the bank and on the bank customers as well. We’ll have to look at the atm disadvantages we have.
Six atm disadvantages
Running to the atm to withdraw a fast can be painful when you’re faced with network issues, especially the dispense error. The atm is very helpful, but has it’s problems too.
Below are the major atm disadvantages facing the banks and banks customers in 2020;
1. Network Issues of atm disadvantage
Network issues is one atm disadvantages we have, and it can be really annoying. For example, going to the atm to withdraw cash, getting there and inserting your card for it to bring out the card stating “No Network”.
Not only that, you might even want to make an online payment or do money transfer which requires the use of the atm, if there’s an issue with the network, it will not go through.
Some countries see this daily and it can be very painful for thr bank customer as there’s nothing you can do order than to wait for it to be rectified.
2. Atm disadvantages of the Dispense Error
One major atm disadvantages that is common especially here in Nigeria is the atm dispense error.
Atm dispense error is quite related to network issues but bit different, though bit different. For those that might be confused on what atm dispense error is, it is the process by which a bank customer goes to the atm to withdraw cash, the atm didn’t dispense cash, but the bank customer is debited.
For example, going to the atm machine to withdraw cash, after inserting your debit card and doing the required process, the atm read but won’t dispense cash to you. Within few seconds you will notice that you’ve been debited.
This is called atm dispense error and the only way to resolve it is by contacting your bank, and the money will be reversed to your account.
3. ATM Disadvantages of Robbery or Theft
Have witnessed this on a bank in a remote area. The robbers came, shot at the security man at the atm and smashed open the machine, carting away lots of cash stuffed in the automated teller machine.
In terms of robbery on the atm, the bank won’t be liable for your loss if you have already withdraw your cash, and robbers rob you the cash right at that very spot.
4. Withdrawal Fee
There’s a withdrawal fee attached to the atm when using an atm that isn’t your bank. This differs from country to country, right here in Nigeria, if you use Gtbank debit card to withdraw cash on zenith bank atm, it attracts a fee of N65 per three withdrawal.
In this new year 2020, the new atm withdrawal fee in Nigeria is N35 and it is quite high as we are still requesting for a free atm withdrawal on other banks atm.
5. Operational Charges
Another atm disadvantages is operational charges. ATMs located in busy locations may not have adequate funds for busy holiday weekends when large numbers of people are taking out cash.
Most machines require envelopes to deposit checks and cash, and these may also be in short supply, preventing customers from depositing funds. Damaged machines leave the bank client with no alternative during non-banking hours.
6. Not so easy to operate
For people that are illiterate or the aged ones, they find it so difficult to operate the atm to the extent of calling a third party to help them out.
For the young and literate one’s, operating an atm seems so easy but it is not applicable to everybody in the society. Up to date, many people finds it difficult to understand how to use the atm to withdraw cash.
Some wouldn’t mind going inside the bank to make their withdrawal instead of the atm.
These are the six major atm disadvantages that are the society we are in, the automated teller machine is good, but you should know that everything has both the advantages and disadvantages.
These are the major five