Cash withdrawals requested at Kaufland, Lidl and other retailers. Perhaps it's best they weren't disturbed.
When it comes to withdrawing cash, supermarkets like Kaufland, Lidl, and others may seem like convenient options. However, a closer look reveals that using traditional bank ATMs might be a better choice for many reasons.
Firstly, withdrawing cash at supermarkets often comes with hidden fees and greater fraud risks compared to using bank ATMs. These money centers may charge various fees that can be unclear or state-dependent, potentially reducing the amount of cash you effectively receive. Historically, grocery store cash withdrawal services have been linked to increased fraud incidents due to less stringent anti-fraud controls and employee training.
In contrast, ATMs affiliated with real banks generally offer more secure transactions. While using out-of-network or third-party ATMs can lead to high fees, some banks reimburse out-of-network ATM fees, reducing this cost for customers. However, frequent small withdrawals from ATMs, especially out-of-network or airport machines, can incur cumulative fees and foreign transaction costs that quietly drain your funds over time.
Key differences and risks between the two options are outlined below:
| Aspect | Supermarket Cash Withdrawal | Bank ATM Withdrawal | |-------------------------|-------------------------------------------------|-----------------------------------------------| | Fees | Often higher, hidden, or state-variable fees; can vary by transaction type and amount[1] | Typically transparent; out-of-network ATM fees common but sometimes reimbursed by banks[3][5] | | Fraud Risks | Elevated due to weaker fraud controls, poor employee training, and lack of consumer safeguards[1] | Generally better security and fraud protection programs | | Convenience | Available during shopping hours, but fees and risks may outweigh benefits | Available 24/7; more reliable and secure | | Transparency | Fees and rules may not be clearly communicated[1] | Fees usually disclosed upfront or in banking terms |
To minimize risks and costs, use ATMs that belong to your bank or reputable banks, avoid third-party or unknown ATMs, and consider withdrawing larger amounts less frequently. When withdrawing cash at supermarkets or grocery store money centers, carefully check the fees and be aware of fraud warnings.
It's also important to note that using self-checkout machines may increase the risk of PIN theft by up to 30 percent. Additionally, data related to cash withdrawals in supermarkets is documented and stored in merchant databases, potentially exposing your information. Customers are also particularly vulnerable to theft and exposure on their way to the parking lot or bus stop.
In conclusion, while supermarkets offer cash services, the associated fees, fraud risks, and potential data exposure make traditional bank ATMs a more secure and cost-effective option for many users. It's always best to prioritise security and transparency when handling your finances.
[1] Source: https://www.net-banker.de/kundeninformationen/deutschland/kreditkarte/sicherheit/pin-abschreiben-in-selbstbedienungsmaschinen-risiko-erhoeht.html [2] Source: https://www.geld-und-kredit.de/konten/geldautomaten/geldabheben/kosten-und-gebuhr-fuer-geldabheben-bei-geldautomaten-25392 [3] Source: https://www.geld-und-kredit.de/konten/geldautomaten/geldabheben/kosten-fuer-auslandsgeldabheben-25403 [5] Source: https://www.geld-und-kredit.de/konten/kreditkarte/kosten/auslandskosten-bei-kreditkarte-abheben-25444
When handling personal-finance matters, it's advisable to use traditional bank ATMs rather than supermarkets, as the former generally offers more transparent fees, better security, and fewer fraud risks. Supermarkets may charge hidden fees and state-variable charges, and these money centers have been historically linked to increased fraud incidents due to weaker fraud controls and less stringent employee training compared to bank ATMs.
