Why does my credit union charge me $1 for using an ATM from another bank?

Question

I used my debit card at my parents' bank yesterday for a withdrawal. I knew that my parents' bank would charge me $2.75 since I do not have an account at that bank, but why did my own bank charge me $1.00?

Update:

Is it a penalty for using a "competitor's" ATM services?

Update 2:

Is it a penalty for using a "competitor's" ATM services?

Answer 1

Favorite Answer

It is not a penalty for using a competitors services it is because

the ATM people charge THEM the 1.00 to process the transaction.

See in actuality they are charging you 3.75 to take money out of the

machine. The moral of the story is don't use anyone else's but your

credit union's ATM (if you are in Canada you can use ANY credit union's ATM free of charge)

Source(s): 40 years a credit union member

Answer 2

Some credit unions will charge you because that atm charges them a fee for you to make the withdraw. All credit unions are different though. The one I am with lets me make ten transactions a month on an atm that isn't owned by the bank. Check with your union and see what their rules are

Answer 3

It's because your credit union is getting charged and they are passing the cost to you.

Answer 4

You didn't read what you signed. When you open the account they give you papers to read. Use your own bank's atm or teller.