How do those without free cash withdrawals succeed?On October 24, 2019 by David Swanson
Certainly they are, and in some cases they are even more cost-sensitive than the general population. These are self-employed and micro-enterprises. BankRáció.hu has looked at what is happening in this area and how entrepreneurs can reduce their costs. Why are entrepreneurs so cost-sensitive? Well, while an average retail customer takes, for example, $ 100-200,000 a month, which includes today ‘s – financial transaction tax – about $ 100,000. 1 percent – at your ATM fee, you will incur a bank charge of between $ 1,000 and $ 2,000, while the entrepreneur will have to make much more money. In addition, while free cash withdrawals of up to $ 150,000 a month will ease the cost to the public, entrepreneurs have no longer thought of entrepreneurs.
Of course, it may not be the case that an entrepreneur does everything in cash, especially if they get their income from a bank account, but if employees ask for their cash payment or do not accept a credit card at the wholesaler and the goods are immediately needed, .
Worst of all, if the entrepreneur goes to the bank and picks up the money in the bank without thinking. Then what can you do about it?
1) If you are already sure you need cash (as it would certainly be cheaper to transfer and prepaid by card) then of course the first thing that an entrepreneur can do is look at whether they can swim somehow. There is really only one way to do this: if your plan includes a cash withdrawal discount. Each bank gives the discount so that the account management fee of 715-13,139 USD can be reduced by the cash withdrawal fee, so it is worth using it, since the monthly fee has to be paid anyway. For the first two banks listed, the bank does not deduct the financial transaction fee (ie 0.6% of the cash withdrawn) from the account management fee (which is due), while the other banks also charge the fee from the monthly fee. until it runs out. Until then, however, you will not be charged for cash withdrawals.
We have found a free monthly ATM cash withdrawal at FHB Bank and some of NTB Bank’s account packages.
2) Once you are sure you need to pay for the cash withdrawal, the second thing is to check the cash withdrawal cost at the branch. There are some schemes where cash withdrawals at branch offices are not too expensive. For example, taking 500,000 forints at Citibank is good and Evobank is not expensive (both are under 1000 forints). Other banks have to pay up to 4-5 thousand forints.
3) Thirdly, if cash withdrawal at branch is too expensive, we will look into alternative cash withdrawal options. There is a surprising amount: you can use a credit card to withdraw money at your ATM, at a foreign ATM, at another bank branch or at the post office. Their fees may vary. As a general rule, you can get the best deal on your own ATM. However, at Thunder Bank we also found that, depending on the tariff plan, the first few ATM cash withdrawals a month can be used at any ATM for $ 785 (instead of $ 1130).
It is worth paying attention to whether the cash withdrawal fee includes a percentage component, as the fee is proportional to the cash withdrawn! In the Hungarian market we did not find that one bank card withdrawal fee contains a percentage component and the other does not, but that the cash withdrawal fee at the bank branch contains a percentage component while the ATM does not. According to the calculations we found that at Széchenyi Bank it is not worth paying USD 1000 at the cash register, while at Citibank the reverse is true: almost any amount is still cheaper at the cash register due to the high fixed ATM fee. The third such bank is the Thunder Bank, where it is worth withdrawing cash at a bank cash desk for less than USD 120,000, but at an ATM.
4) Finally, the fourth option, especially if the entrepreneur’s cash requirements are frequent, is to switch accounts, and ultimately to change banks. Our Corporate Invoice Calculator can help.
We want to highlight two important things. One is the issue of limits and the other is the obligation of prior notification.
Limits include not only the daily limit of the credit card or the number of daily transactions, but also the limit of the ATM itself, as both limit the amount of cash that can be withdrawn. We need to check the former ourselves before the transaction, and the latter one, that we can usually withdraw 400 or 800 thousand for a transaction (at CIB Bank some ATMs only 200 thousand, while OTP Bank machines with other bank cards up to 100 thousand) in a transaction). Unfortunately, if the money you can withdraw is limited to cash withdrawals at a branch.
The obligation to notify covers the prior notification of the amount you intend to withdraw from the bank. This amount varies from bank to bank, but it is advisable to ask for more than 1 million USD. Lastly, it’s worth noting that if a cash withdrawal is not accepted that day, the bank will usually charge a special fee, so if you are notified, let’s get there!