Personal Finances – ATM Cards & Personal Checks

Is there a limit on how much a bank can charge when I take money out from an ATM machine?

No. Texas has no state law prohibiting or limiting ATM charges. Each individual bank is allowed to decide whether they would like to charge a fee and the amount of that fee. If a bank does charge a fee, it should provide full details on the standard charges when the account holder first receives the ATM card.

While there is no limit to the ATM fee that you can be charged, federal law does require that any ATM provider that imposes a fee on a consumer for an ATM transaction is required to provide notice of the fee in a prominent and conspicuous location on or at the ATM where the transaction occurs. The ATM operator is also required to disclose the amount of the fee, either on the screen of the ATM or on a paper notice, before the consumer has committed to completing the transaction. An ATM fee should not be charged if proper notice is not given. Although less common, an ATM fee can also be charged by a retail store if purchases are made with an ATM card.

I wrote a check and post-dated it for several weeks. The person I gave the check to cashed the check within a few days. Is the bank allowed to accept and pay a post-dated check?

Yes. Under Texas law, a bank may accept and pay a check that is otherwise properly payable. This is true even if when payment is made before the date of the check. Practically, this means that someone should not count on a post-dated check to delay payment on a check.

One option for someone who does not want their post-dated check to be cashed is to give notice to the bank describing the post-dated check with reasonable certainty. This is very similar to issuing a written stop-payment order. The notice must be received by the bank with enough time to afford the bank a reasonable opportunity to act on it before taking action with respect to the check (i.e., paying the check). If after receiving the notice the bank still pays on the check, the bank will be liable for any damages resulting from its act.

This article appears in June 17 • 2005.

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