Although in most parts of the world money transactions using digital platforms are becoming more and more common, the use of cash is inevitable, and will most likely remain so for many years to come. Any bank or fintech company, neobank to be more specific, aware of this situation, offers its customers options to make cash withdrawals. However, conditions may vary depending on the entity offering this service.
The first option is cash withdrawal at a bank branch, which is common for most people, particularly the adult population. Practically all banks allow their customers to make these withdrawals. For this purpose, it is necessary to be in person at the office so that a bank officer attends to the client’s request, who must provide his/her debit card or personal and bank account information in order to receive the cash. Of course, they must have funds in their account to carry out this operation. Depending on the bank and the type of account there may be monthly bank account fees, which are charged for withdrawals and other services.
The second option is ATM withdrawal, which is possible both with banks and with fintech banking companies. In these physical terminals, users only have to insert their debit card, or credit as well, and withdraw the desired amount. Banks usually have their own ATMs, where their customers can have preferential conditions, such as low transaction fees or totally free withdrawals. However, to cover more territory, banks may give cash to their customers through third-party ATMs. In this case customers will have to pay commissions charged by the ATM owner. This is often the case with smaller banks, which have few ATMs of their own compared to their competitors. On the other hand, although they are in the minority, some ATMs work only with one card network, for example Mastercard, VISA, among others.
In contrast, currently neobanks have the largest ATM networks, and those that do not have their own ATMs can handle the situation much better. First, because of their fully online nature, their operating costs are lower, which means lower fees for their customers. Secondly, neobanks are very flexible and relate very well with their strategic partners, adapting more easily to the conditions imposed by them. On the clients’ side, all that is necessary is that they have money in their digital banking account. For example, Blackcatcard, a European neobank, allows its individual customers to withdraw up to 200 Euros in cash per month for free at almost any ATM in the EU that accepts Mastercard –to make life easier for users, the payment-processing giant has a locator that allows them to find the nearest ATM–. Above that sum, a very low commission of only 1% of the amount withdrawn is charged.
As mentioned above, these fees are charged by the ATM owner, although a percentage may also be charged by the institution that issues the card.
It should be noted that neobanks are not limited to one region. For example, Blackcatcard customers can withdraw cash from almost any ATM integrated to the Mastercard network in the world, also with a very low commission of 1% of the amount of the transaction.
In fact, it often happens that financial institutions charge their customers different fees depending on where the card was issued and where the withdrawal is made. For example, if an institution in Europe issues a card in this region, and a customer wishes to withdraw cash at an ATM in Europe, there may be a lower fee than if the withdrawal were made in the Americas or Asia.
With this information in mind, customers of both banks and neobanks can be confident that they can get cash practically anywhere in the world as long as they have their debit card or credit on hand and funds in their account, of course.
