The Disadvantages of ATMs

Criminals can fit skimming devices and small cameras to ATMs. These machines record account details and personal identification numbers, which the crook uses to withdraw money from those accounts. ATM skimming costs the U.S. banking system around $1 billion each year, or $350,000 a day, according to the Secret Service. In January 2012, Mike Urban, director of product management for Fiserv's Financial Crimes division, told "Bank Info Security" ATM skimming had reached "epidemic" levels and continued to grow.

Banks and machine owners draw a huge source of revenue from ATM fees. Cardholders can usually withdraw cash for free from ATMs owned by their bank, but typically have to pay to use machines owned by other companies. In 2011, the average fee was $2.40 according to Bankrate.com's Checking Survey.

If you go to a bank, you're likely walking into a secured area watched by multiple cameras or a life guard. Those elements encourage crooks to keep their distance from the bank. You'll find no such security blankets with an ATM. It also takes a little time to take a card out, insert it in the machine, access your account and get your cash. That can be enough time for a crook to attack, which is why some people won't use an ATM after dark or in secluded locations.

ATMs give, but they can also take. They can malfunction and simply not be available when you need them. Some will also retain damaged cards, or any card if its owner fails to enter a correct PIN after three attempts. A cardholder can usually reclaim her card if it's been retained by a machine owned by her bank. However, if the card is kept by another bank's ATM, there's no guarantee she'll ever see it again.