7 Reasons why an ATM Could Seize your Card

ATM

An Automated Teller Machine (ATM), is system installed by banks to help clients perform financial transactions, such as cash withdrawal, cash transfer, cash deposit, utility bills payment, balance inquiry etc.

However, you’ve probably had your Cash Card withheld on an occasion or told there was ‘no service’ when you desperately needed money.

NGscoop decided to share some reasons why your card could be seized by an ATM to make sure you don’t fall a victim.

WRONGLY INSERTED CARD

There’s an arrow pointing in a certain direction on an ATM card, the card is meant to be inserted in that direction. If you insert it another way, the ATM could hold on to it.

All Cash cards have a magnetic chip on them where the carrier’s data is encoded. Over time, the chip could become bad as a result of bad usage or the other parts of the card damaged totally. Using a broken or damaged card can cause the ATM to withhold it because it can’t read the encoded information.

WRONGLY ENTERED PIN

It’s also a security measure at some banks against theft. ATMs are programmed that way. When a customer inserts his or her pin multiple times without success, the machine could decide to hold on to the card as it would have detected suspicious activity.

CARD EXPIRATION

This is a method banks across the world use to call back expired cards. The moment your card becomes expired (crosses the date imprinted on it as its last), if you try to use it in an ATM, it’ll likely be withheld. It’s standard procedure for most banks.

 

STOLEN CARD

Similar to an expired card. A stolen card is usually reported by the original owner of the Card. The issuing bank takes it out of service for security reasons. Using such a card on an ATM always would result in it being withheld.

DAMAGED CARD

All Cash cards have a magnetic chip on them where the carrier’s data is encoded. Over time, the chip could become bad as a result of bad usage or the other parts of the card damaged totally. Using a broken or damaged card can cause the ATM to withhold it because it can’t read the encoded information.

INCOMPATIBLE ATM/CARD

If you look at your ATM card closely, you’ll see the name of the issuing company boldly inscribed on it. There are different issuing companies for banks, and although they’re gradually becoming harmonized, some are not compatible still. Using a cash card that’s not compatible with another ATM could cause it to be withheld.

INSUFFICIENT FUNDS

It’s a security measure for some ATMs to withhold a cash card if a user tries to withdraw money with it multiple times, when there’s insufficient balance in the account. Banks use it sometimes as protection against theft.

 

There are occasions where it’s as a result of a malfunction inside the Machine though, but it’s always good to ensure you’re good on your own end. If you experience anything like it, consulting your bank is the best option.

 

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