Withdrawing money from an ATM may always seem like the same operation, but there are important differences between the ATM network, other ATMs and private networks. Knowing how to distinguish them can avoid unnecessary commissions, especially when the card allows installment withdrawals.
Doubt is more common than it seems. As he summarized in a financial literacy guide, many people treat all machines the same. But, according to Banco de Portugal, “ATM” is the name for ATMs on shared networks, such as the Multibanco network, while “ATS” refers to machines on the institutions’ private networks.
Not all automatic transmissions work the same way
In Portugal, the Multibanco network is managed by SIBS and allows a wide variety of operations, from withdrawals and balance inquiries to service payments, top-ups, transfers and other features. SIBS itself indicates that the network has around 13 thousand pieces of equipment spread across the country and more than 90 different operations.
In addition to the Multibanco network, there are other automatic machines with different frameworks. Some belong to the institutions’ private networks and others, such as ATM Express, also managed by SIBS, were designed to better respond to international users, although they can be used by national customers.
Withdrawing money may not be the same on all machines
The most important difference, however, is not always in the name of the machine, but in the type of card and the way the withdrawal is processed. According to the Bank of Portugal and under the terms of article 2 of Decree-Law nº 3/2010, if the card is only debit, withdrawing money in euros in Portugal cannot incur commissions, regardless of the ATM network.
If the card is a credit card, the withdrawal corresponds to a cash advance and may involve commissions and, possibly, interest. In the case of mixed cards, which combine debit and credit functions, there is no commission if the withdrawal is made using debit, but there may be costs if the operation is made using credit.
ATM Express itself also clarifies that it does not charge fees to holders of cards issued by Portuguese banks. This means that the risk of paying more does not automatically arise from the fact that the machine is not a traditional ATM, but rather from the way the transaction is processed and the rules of the card used.
A small detail can avoid unnecessary costs
In multi-brand or mixed cards, the important detail is to understand which payment brand and which function are being used. Banco de Portugal explains that, at automatic payment terminals, the customer can choose the brand associated with debit, such as Multibanco, Visa Electron or Maestro, or the brand associated with credit, such as Visa or MasterCard, when the terminal accepts more than one.
In practice, if the operation uses the credit function, the amount stops immediately leaving the current account and starts using the card’s credit limit, with costs that depend on the contract and the bank’s price. Therefore, before withdrawing money or paying, it is worth confirming what type of card you have and how the transaction will be handled.
Differences that make a difference in everyday life
At first glance, all automatic transmissions look the same, but they are not. The ATM network offers more services than most other machines, while private networks and some solutions designed for international users may have different functionality.
Still, when the objective is to avoid commissions, the most important rule is simple: with a simple debit card, withdrawing money in Portugal should be free of charge; with a credit card or mixed card, the important thing is to avoid, without realizing it, a credit withdrawal. It is this detail, more than the name of the machine, that can make a difference in the final bill.
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