How Much Does Your Debit Card Cost You?

Debit cards are an everyday part of life but these convenient financial tools could be costing you a lot more than you realise.

Just like other bank services and products, there are sometimes monthly fees attached to a debit card account.

While a lot of accounts now come with MasterCard or Visa debit cards and no monthly fees, there are some that come with conditions or a regular cost.

The ANZ Access Advantage, for example, charges $5 per month and the St George Complete Freedom account charges between $5 and $7 per month but will waive the fee if at least $2000 is deposited every month.

While $60-$84 a year may not seem like much to some people, it could easily be put to better use in your savings or on other everyday expenses, so it is a good idea to consider these costs before you get a debit card account.

In addition to possible monthly fees, there are other situations, like the ones below, where using debit cards may lead to additional fees and looking at them now could help you save a lot more when you use debit.

Non-Bank ATMs

Both ATM operators and banks can charge you fees for using an ATM that is not part of your bank’s network and in extreme cases this could mean forking out $5 or more dollars for one withdrawal.

If there is no other way to get access to your cash, you can cut down on the fees by getting more money out at one time or requesting cash when you pay with EFTPOS so that you do not have to make as many transactions.

Some banks, like NAB, have also cut back on where and when they charge money so regularly reviewing account fees is a good way to save as much as possible.

Debit Card Surcharges

Some merchants charge you extra for choosing to pay by card and could tack on an extra 10% or more to the actual purchase price, quickly adding up costs on your debit card.

Airlines, for example, often feature a card fee of around $5 to $10 per purchase, regardless of the actual cost of the ticket.

Smaller retailers like boutiques or independent cafes could also charge you extra if you do not meet the minimum EFTPOS amount – usually around $10 or $20 – which increases the cost of your coffee or muffin unless you can pay with cash.

The good news is that any merchant including a surcharge is legally required to notify customers before the payment is processed, giving you a chance to find another way to pay or shop elsewhere.

As more and more people favour cards over cash, the fees attached to these pieces of plastic can really start to build up. But being aware of when you are charged money will make it easier to keep track of your money and may even help you save more in the process.