Auto-banking basics
Published:Sunday | May 8, 2011 | 12:00 AM
Avia Collinder, Business Writer
If you are feeling a bit hot under the collar because of the bank-imposed limitations on the usage of your debit card via the automatic banking machines, the good news is you can ask for a better arrangement from your financial institution.
You can negotiate for higher limits - or lower, if the specific card user is a child or other dependent - and a better range of services for debit-card transactions in using the machine.
Or you could find another card issuer (institution) with better terms.
The cardholder relationship is handled by the institution that issues the debit card, says Edmundo Jenez, general manager of JETS Limited, operators of MulitLink.
Your enjoyment of the facility will depend on how much you know about their policies.
Jenez indicates that while, in principle, the members in the network cooperate to provide extended services to their customers via a common technology platform, each institution maintains individual policies on the nature of the service provided to customers using the network infrastructure.
"The issuer sets the card limits for maximum single-transaction amounts and maximum daily transaction amounts," he said.
"It also may set different limits for individual cardholders."
So you should ask your bank for usage terms that suit your financial needs.
ABM charges currently range from zero to J$42.55 per transaction. Some banks begin charging after the fifth transaction for the month. Others attach free unlimited transactions to special customer accounts.
Local issuers of cards number around 10, including seven companies that have an ownership stake in the Jamaican MultiLink network - Scotiabank Jamaica, National Commercial Bank, FirstCaribbean Jamaica, RBTT Bank Jamaica, Jamaica Cooperative Credit Union League, Jamaica National Building Society, and Victoria Mutual Building Society - and three others, which are individually sponsored by owners.
Together they provide more than 530 ABM machines for use.
Int'l transaction fees
Ask about fees for international transactions. They might be higher, with visitors to the island paying as much as US$5 for withdrawals in some instances, Sunday Business research shows. In the case of merchant banks, there is a 15-day delay or waiting period to access funds by cardholders after initial deposit.
The services you will get from the ABMs attached to your bank - referred to as proprietary services - will differ from those available on the MultiLink network. MultiLink services are ABM cash withdrawals and balance enquiries, and point-of-sale merchant- payment withdrawals.
"MultiLink network transactions only allow for withdrawals and balance enquiries. But if the machine belongs to your bank, services will include withdrawals and enquires, and several other services can be added, such as transfers, for example," said Jenez.
You may need to ask for these facilities to get them, however.
ABM transactions on proprietary systems come cheaper and in some cases at no cost, while higher charges are attached to MultiLink access. An NCB customer using a Scotiabank machine, for example, will pay a higher fee than when transacting business via an NCB banking machine, and vice versa.
With some banks as well, clients might encounter higher charges because of lower withdrawal limits. You might need to withdraw sums twice to arrive at the total you need, thereby doubling charges attached.
How cash is dispensed by an ABM is determined by the institution owning the terminal - called the acquirer - which sets the maximum single-payment amount and the combination of cash notes used to effect the payment.
The local owners of MultiLink comprise four banks - Scotiabank Jamaica, National Commercial Bank, FirstCaribbean Jamaica, and RBTT Bank Jamaica; the Jamaica Co-operative Credit Union League (JCCUL); and two mortgage companies - Jamaica National Building Society and Victoria Mutual Building Society.
On the MultiLink network, the peak activity tends to occur during the last week of the month around the typical payday, within the 20th to 28th day.
There were 17.13 billion debit-card transactions in 2010, and Jamaicans withdrew J$50.54 billion at the teller machines. For MultiLink network transactions, the average ABM withdrawal in March 2011 was J$5,209.