Don't Waste Your Money: ATM limits higher than you think - Toledo News Now, Breaking News, Weather, Sports, Toledo

Don't Waste Your Money: ATM limits higher than you think

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(Toledo News Now) -

Many of us assume our ATM card has a $500 daily limit. After all, it used to be that way, but not anymore. One Ohio woman was recently hit for thousands of dollars when thieves got her debit card and PIN number.

ATM's seem so simple: Swipe your ATM or debit card, take out $100, and you're good to go. But there are some things about ATMs many of us don't know that could cost us serious money. 

Scammer Drains Account

Roseann Herman recently stopped at an ATM to get some cash, with no idea what was about to happen. 

"I went to get money out and it turns out that three hours later someone else got money out," she said. 

Herman suspects a scammer may have installed a credit card skimmer on the machine to read her card numbers. She filed a police report, but local police told her they found no evidence of a skimmer. 

All Herman knows is when she looked at her balance, it was down substantially from ATM and debit card transactions she didn't make. 

"I checked my bank account a couple of days later and was overdrawn, which hasn't happened in 30 years," she said. "The bank said someone had been using my debit card and they apparently had my PIN. They got almost $3,000." 

Overdraft Protection Worked Against Her

It turns out the overdraft protection she signed up for worked against her, allowing the thieves to use her debit card number over and over again. 

"I thought I had a $500 limit on my ATM," Herman said. "When I went there I took out 200, but three hours later they took out 500. Then they started doing point-of-sale transactions, draining it more. Every time they overdrew my account, my savings account would replenish that." 
     
While the bank would not discuss her case with us, Herman filed a fraud claim and finally got most of the money back.

Still, she wants to warn others about one downside of overdraft protection. While it protects you from bouncing your checking account, it can also protect thieves who have your card number, enabling them to take out more money than they could from an account with no overdraft protection, where the sale would be denied due to lack of funds. 

"I had no idea the overdraft protection would work that way," said Herman. 

She says she is setting her daily ATM limit back to $500. 

Check with your bank to see what your ATM limits are at one ATM and during an entire day. If you're not comfortable with the terms, ask if they can change it. That way you don't waste your money.

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