Short for an automatic teller machine, ATMs are meant to add convenience by providing access to banking services at any time. Whether it’s to make a deposit, a withdrawal, or pay a bill, ATMs give access to financial services around the clock. Even with the onset of online banking, the value of an ATM remains. After all, you can’t take out cash through your cell phone, nor can you make a deposit. ATMs combine the ease of digitization with the in-person benefits of an actual bank.
Chances are that you already know or have used these machines, but do you know how they work? How to use one safely? In this article, we break down everything you need to know about ATM security, function, and convenience.
An ATM is an abbreviated term for an Automatic Teller Machine. It’s a computerized system that allows you to access banking services without waiting in line to speak to a teller. Instead of having lines of people waiting to speak to relatively few bankers, software engineers developed a system to address the most common, straightforward banking needs.
While you can’t go to an ATM for financial advice, you can do most basic transactions like checking your balance and withdrawing or depositing money. Though nowadays actual online banking has co-opted many of the purposes an ATM serves, it remains essential for one key thing: cash handling. Accessible 24-hours a day, these small-scale banking devices enable you to withdraw and deposit cash quickly.
Automatic Teller Machines (ATMs) and Automatic Banking Machines (ABMs), are exactly the same thing. The difference is entirely colloquial, meaning someone from Vancouver might call it an ATM, a Torontonian might call it an ABM, while someone from Quebec might call it a guichet or a DAB (short for distributeur automatique de billets). Whichever name you assign them, ATMs are extremely handy — Canada roughly 70,000 in total — giving access to financial services in most communities across the country.
Though the services are quite similar, there are three unique types of ATMs in Canada. These include:
This type of ATM usually has the most features available and comes at the lowest cost. When you use ATMs from your own financial institution, there is usually no charge. Because it is directly owned by the bank, you can complete many transactions. Among them, you can pay bills, make deposits, check account balances, and complete transfers. Even if you don’t bank at that institution, you can use the ATM to withdraw cash for a fee.
Off-premise ATMs usually offer simple cash-dispensing services, though usually don’t accept deposits (largely for security reasons). If you bank with the institution that owns the machine, then you can often do other, digital transactions. Those who bank elsewhere can access cash dispensing services for a fee whereas existing customers get the benefit of free transactions.
Dedicated to convenience, these ATMs are owned by private companies in competition with the banks. While large financial companies have the benefit of infrastructure (digital and physical), independent operators can offer convenience. However, these machines generally only offer cash withdrawals.
You might spot one of these machines in a small-town grocery store, at a festival or concert, or anywhere you might find yourself in need of cash. While there’s a fee, it is still quite popular with roughly 70,000 ABMs across the country 51,485 are independently owned.
There are almost 70,000 ATMs in Canada, with banks operating 18,515 of these machines and 51,485 of these being operated by independent owners. ABMs continue to evolve, and so has their utility:
From the security features to the touchscreen surface, ATMs are built to be intuitive. To withdraw money, simply:
When you withdraw money from an ATM, there’s usually a withdrawal limit on the account, mainly for security purposes. It protects the account holder from the risk of loss, whether due to poor judgment or unfortunate circumstances.
The total you can pull out of your account, per day, depends on the types of accounts you have. Most institutions set the limit to $500 – $1,000 per day. Bear in mind that you can adjust the limits to a lower amount to prevent overspending.
If you plan to deposit cash through your ATM, ensure that it offers that service. Your best chance is to use a full-service ATM at your financial institution. Even during off-hours, banks keep these terminals accessible. To deposit money using an ATM, simply follow these steps:
Learn about NSFs and bounced cheques.
Though ATMs are meant to be an affordable service, each ATM has associated fees with its operation. These include:
Avoid fees with these unlimited transaction chequing accounts.
| Type of Fee | Fee Amount |
| Regular account fees | $1.00 to $2.00 per additional transaction |
| Network access fee | In Canada: $2.00 to $3.00 International: $2.00 to $5.00 |
| Convenience fee | Varies based on the owner. Usually between $1.00 and $2.00 |
| Currency exchange fees | Fee for exchange: 2.5% |
The good news is that it’s far easier to find an ATM than it is to locate an actual branch of a bank. You can find an ATM in most convenience stores, shopping centers, or festivals (situations where you need cash the most).
To find an ATM, simply visit the website of your bank and look for the locations. If the bank has a branch near you, they will also have an ATM. Conversely, you can do a quick search for “ATM near me”. Provided your location settings are enabled, you will see a list of ATMs in your area.
Now, with the combination of ATMs and online banking, there are few reasons to actually visit a banking location. Together, you can perform almost any standard banking transaction. In fact, when you wait on hold to speak with any of the Big Five banks, the prerecorded message often directs you to visit their website. So whether you need to pay a bill, deposit a cheque, or have some extra cash, the services are easy to access.
Corrina Murdoch has been a dedicated freelance writer and editor for several years. With an academic background in the sciences and a penchant for mathematics, she seeks to provide readers with accurate, reliable information on important topics. Working as a print journalist for several years, Corrina expanded her reach into the digital sphere to help more people gain insight into the realm of finances. When she's not writing, you can find Corrina swimming and spending time with family.
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