The other day I made a post entitled “Are you stupid? Sometimes I am!” It kind of sparked off a debate that lead in a direction that I was not quite ready for! You see, I didn’t really intend that post to be about banking, I had just used banking as an example of what I was talking about. But, that’s good that a discussion got going, even if it was a topic that I did not intend, because it showed me that I needed to make a post answering some questions asked about banking! I have touched on this before, but it’s been a while, and maybe I can attack it from some different angles this time.
In the discussion on that post, I mentioned that ATM machines are unreliable here. It is, in my opinion, really true that they are. The things that make them unreliable is that the are off-line a lot times (which means that you can’t use them), there are plenty of times when they have no money in them, there are also lots of times when they have no receipt paper so receipts are not available. Another thing that happens sometimes is that they take money out of your account, but do not dispense it to you! When I mentioned this, Graham almost immediately replied and asked how he could get cash, since I had mentioned that Cash is King here, yet the ATM is unreliable.
Well, Graham – each of these problems with the ATM machines is one that you can prevent or minimize if you take some steps toward preventing it. Let’s look at each of the problems that I noted above, and what you can do to solve the problem.
- ATM Machines being Off-Line. Well, at least this is not a security issue. It’s not like you are going to lose money (have it removed from your account) when the machine is off-line. What it means, though, is that you cannot get money at a time when you may need it. You have a few choices here. First, I recommend that you always keep enough money on hand that you can wait a day or so before you are in dire need of money. Have a certain amount of money (maybe P5,000) stashed away for those times when the ATM is not working. Also, you can always go to another bank to try their machine. Just because the ATM at one branch is not working, it doesn’t mean that the other branches are also off-line.
- ATM has no cash available. This is almost identical to the strategy above. Keep some cash available. Try a different branch.
- ATM cannot issue receipts. This one is a little tricky. I say this because I think it is important to get a receipt. It’s the only way that you can have proof of the transaction in case of trouble. But, if you really need the money, you can transact without getting a receipt. You can always go to try a different machine, though.
- ATM doesn’t give you money, but takes it out of your account. This is VERY important, and I really implore you to read my previous post on this matter, which is linked above. Although this does not happen nearly as often as it used to, it is really something to watch out for, and be careful. If you press the matter, though, the bank will reimburse you for the money taken.
Graham asked in his comment about the safety of using your card here. He, I think, is worried that perhaps your card number will be swiped and things like that. I do not believe that this is a huge risk here. I use ATMs often, and have not experienced any such problem. Because of our various businesses, Feyma and I probably use ATM machines to withdraw cash from our US account many times every week, so we have extensive experience with the ATM networks here. I just recommend that you use common sense in conducting your transaction, and you should be fine. Look around and see if anybody is watching you or following you. Maybe they are waiting until you get cash so they can take it. When I see people like this, I just leave and go to a different branch of the bank. It doesn’t happen often, and probably nothing would arise from the situation, but I’d just prefer to be safe rather than sorry. Graham also mentioned cloning of your card. This is something that I have never heard of happening here, although I know it is a problem in Western Countries.
My strongest advice is to read the post about ATM machines not giving money even when they charge your account. Combat this by being vigilant in watching what is going on!
Hi Bob,
The post that you presented concerning banking and ATM machines was very informative. I will tell you that with my recent trips to the RP (Manila & Dipolog), I never experienced any problems with the dispensing of money through the ATMs. The only thing that I can state of certainty is the concern that occasionally the units will be offline when the time comes to withdraw money. There is a good feeling of security however, being that most of the banks that I personally visited had armed security guards watching all transactions. And they were even able to answer basic banking questions that I had.
As with most financial transactions occurring U.S. cities, use discretion and common sense when it comes to banking at an ATM. Watch your back and never let your guard down… you never know who may be watching and attempting to take advantage of your vulnerability. As foreigners, we can stick out like a "sore thumb."
William
An excellent peice of information Bob, hmmm so you actually should check your balance first before you make a transaction and then check it afterwards to see if it tallies up ? wow…what a lot of aggravation but its the Philippines.
Hi William – good comments. I agree with what you say.
Hi Peter – yes, out of caution, I do advise that you closely monitor your bank balance before and after your transaction. Doing so has saved me thousands of dollars over the years.
I have taken money out of my US bank accounts in Tacloban City ATM machines and never had any problems. Also I have used the one in the Mall at SM in Cebu and it worked very good. You just have to tell your bank in the us that you will be taking money out on vacation in the PI so they know it is you. The same works well with major credit cards. It worked well this last JaN.
As you proabably know Bob my wife was in Philippines for 2 weeks, she returned home safely on Sunday Night, she is the proud owner of a new Metrobank account, this special account has the facility of a cheque book or (Check) book for our American cousins, the english use the (cheque) spelling, so i said to her, "So now you have a cheque book and debit card with this new account"? she said "No honey, you do not get that, just the book" I said, what good is a cheque book without a debit card, surely the whole point is to give you a multifunction account, ! she said "No..you have the cheque book, and I have a seperate ATM Card with another account !" PETES VERDICT – It makes all the sense in the world, one account for drawing cash, one account for writing a cheque.
I dont suppose anyone has told them it makes sense to have 1 combined account.
Oh well !!! maybe in 2050
Hi Peter – Welcome to the Philippines!!! Ha ha…
I peronally have never had a problem with atm's in Davao.or indeed with using my card in various stores, nccc, shoemart, gaisano, victoria …. to name but a few. In fact I think credit card scams and atm problems are far more common in the States and the U.K. I tend to use Metro bank because the advantage of that is it will give you up to 20,000ps a day whereas other banks limit your withdrawals. Yes theyre often off line but i think you'll find that its at a regular time of day when they fill up the atm …. dont bother trying to use metro bank at Victoria Mall between 8am and 9.30am because its just not going to happen.
In fact talking about security ….. in february i went to the aforementioned branch to withdraw some cash …. they'd left all the keys in both atm's. being the honest person i am 🙂 i alerted the security guard. While I'm here …. let me warn you all about a little thing going down in Davao …. I think its called The Association of Foreigners in Davao ….. run by a dutch guy who claims to be a Doctor ….. I met him in hagars bar ….. he advertises in the local newspapers …. Give it a miss.
Hi Alf – We always have good luck with BPI. Their machines are also good for P20k per transaction too. By the way, Metro Bank will give you more than P20k per day, they give P20k per transaction. After you get P20k, you can do another transaction and get another 20 if you want. The amount you can get per day is decided by the bank that issued the card. The banks here only dictate how much they will give per transaction.
I am also somewhat familiar with the Association that you discuss. While I have not attended any meetings, nor have I met anybody, the thing just leaves a bad taste in my mouth. I agree with what you say – Give it a miss!
I'm fom Davao City, living in NY now. Have not encountered any ATM problems at all. We usually use the one at the Equitable Bank, open always during banking hours.
Hi Tess – Good to hear that you haven't experienced any banking problems! We experience such problems a lot less frequently than happened 4 or 5 years ago. That's a good thing! We normally use BPI for our banking needs, but have used Equitable from time to time too.
Hi Bob, I’ve had all the problems you mentioned with the ATM’s at the SM Mall in Baguio including having $200 taken out of my account but the ATM didn’t disperse the $200. The ATM’s here can be very aggravating at the least! Oh, I love your website!
Hi Brad – Thanks for your nice comment, I am happy to know that you are enjoying my site!
Yes, the ATM machines here can be quite frustrating! Best thing you can do is to really watch closely what happens with your money!
In iligan it,s the same. Pnb , you can not take money from the machine,
But outside they show all kind of accounts [ mastercard , visa etc ]
Then you must go to Equitable bank , you get only 5000 peso out.
And we had to pay 38000 for hotel.
Go inside , with our credit card. First my [ Philippine ] wife can get nothing, i complained and after 30 minutes she can have 20.000,
so i allso take 20.000 with my creditcard [ extra cost for taking cash ]
Allso the bank in iligan give you less peso for the euro than lets say in cebu. ever euro [$ 1,35 ] is 2 peso less .
To avoyd that , 2 years ago , i opned a small account with equitable
bank [ only 3000 peso ]
Than this year when i send 100 euro to that. i heard nothing. So after 2 months i asked them , but the account was closed , my 3000 peso gone
and my 100 euro was in PNB manila.
It took me months [ on our holida last July ] before i got that back.
Hi Peter,
You can get a cheque book, and the debit card on the same account now. I'm not sure which bank it is who is doing it, But I think it may be BPI " bank of the philippine islands), or HSBC.
Ian