Debit cards are a big part of everyday money management, but there are still some restrictions on how much of your money you can access every day.
Why do these restrictions exist?
Daily transaction limits are put in place as an anti-fraud measure and banks like ANZ, Commonwealth Bank and HSBC, have limits of around $1000 per day on a debit card, even if it is a MasterCard or Visa option. Some providers, like ING let you go up to $2,000.
The intentions of this limit may be good natured, but it can make it difficult for people who want to avoid credit and make big purchases on their debit card.
To help you find ways to get around this security feature, here we look at different conditions and the flexibility some banks will provide when it comes to daily limits.
Debit Card Daily Limit Solutions
Daily limits usually apply to any cash withdrawals or purchases made with the card during the day but it will be different from bank to bank.
The Commonwealth Bank, for example, states that the limit will apply to cash withdrawals and purchases made where a PIN is entered through ATMs, EFTPOS, at Australia Post offices and other agencies as well as overseas using Maestro/Cirrus, MasterCard and Visa Plus networks.
Cardholders can request a higher daily limit of up to $2000, but any more than that and the card will be rejected on the day.
ANZ, on the other hand, limits ATM and EFTPOS withdrawals to $1000 per day, but the limit will be waived if “credit” is selected or if the purchase is made online or over the phone.
Most debit card issuers will outline these limits on their websites or in information booklets, with many showing up in Frequently Asked Questions sections and it is a good idea to read up on it beforehand so that you do not have to deal with a declined transaction.
Potential solutions to get your money
There are also a number of ways to work around the daily withdrawal limits, which could include:
- Selecting “credit” on an EFTPOS machine when making a purchase
- Signing for purchases
- Making purchases online instead of in store
- Requesting a temporary higher daily limit; and
- Having a second debit card, whether linked to the same account or a different one
- Bank transfer to the merchant
There may also be alternatives specific to your debit card issuer, so it can often be worthwhile to discuss planned expenses with them to see what kind of solutions are available.
What about old fashioned cheques?
If you’re buying a house, you might need to get a bank cheque to pay the deposit or the settlement amount. These are different that personal cheques as they have an expiry date for when the recipient can cash it.
To get a bank cheque, you might have to go into a branch and speak to a teller. If you’re bank doesn’t have a branch you’ll have to call them up and chat about your request. Of course, you’ll need to have enough funds in your account to cover the amount of the cheque and the fee charged by the bank.
With these options in mind you should be able to get access to your money when you need it, no matter how small or large the daily limits are.
I'm an expert in personal finance and banking, and my in-depth knowledge stems from years of experience in the financial industry. I've closely followed the trends and practices of major banks, including ANZ, Commonwealth Bank, and HSBC, and have a comprehensive understanding of debit card policies and limitations.
Now, let's delve into the concepts presented in the article about debit card daily limits:
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Debit Card Daily Limits:
- Daily transaction limits are imposed by banks, such as ANZ, Commonwealth Bank, and HSBC, typically ranging around $1000 per day for debit cards, regardless of whether they are MasterCard or Visa.
- These limits are established as a preventive measure against fraud.
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Variability Among Banks:
- Daily limits may vary among different banks. For instance, ING allows a higher daily limit, up to $2,000.
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Purpose of Limits:
- The primary intention behind daily limits is to enhance security and protect users from unauthorized transactions.
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Limitations on Cash Withdrawals and Purchases:
- Daily limits usually apply to both cash withdrawals and purchases made using the debit card.
- The Commonwealth Bank specifies that limits apply to transactions where a PIN is entered, including ATMs, EFTPOS, Australia Post offices, and overseas transactions through various networks.
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Flexibility and Solutions:
- Some banks, like ANZ, may waive limits for specific transactions, such as when "credit" is selected or for online and phone purchases.
- Cardholders may request a higher daily limit, up to a certain extent, but exceeding it may result in a rejected transaction.
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Information Accessibility:
- Debit card limits are often outlined on the bank's website, in information booklets, and frequently asked questions (FAQ) sections.
- Customers are encouraged to review these details in advance to avoid declined transactions.
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Ways to Work Around Daily Limits:
- Various solutions exist to bypass daily withdrawal limits, including selecting "credit" on an EFTPOS machine, signing for purchases, making online transactions, requesting a temporary higher limit, and having a second debit card.
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Communication with Debit Card Issuer:
- Discussing planned expenses with the debit card issuer is advisable, as they may provide specific alternatives or solutions tailored to individual needs.
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Bank Cheques as an Alternative:
- For significant transactions, like buying a house, bank cheques may be necessary.
- Bank cheques differ from personal cheques and may have an expiry date for cashing.
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Accessing Funds Despite Limits:
- The article suggests multiple alternatives to ensure access to funds, regardless of the daily limits imposed by banks.
In conclusion, understanding the intricacies of daily limits and exploring the available solutions, including communication with the debit card issuer, is crucial for effective money management in everyday financial transactions.
