When you open a new debit card account, the bank will send you a list of fees that you might have to pay when using your account. Debit cards are pretty light on fees, unlike their credit counterpart. Debit cards are not completely immune to fees, so here’s some of the main ones to be aware of.

Why do banks charge debit card fees?

There’s many reasons why banks charge fees on their debit cards. Under the surface there’s many costs to cover in providing you an account. These costs can include things like the card production cost, mailing the card out, paying for EFTPOS and ATM terminals, fraud protection teams all the way down to the customer service team.

All of these hidden costs are reasons why banks will include more traditional fees on their accounts. The ones most consumers know are:

Fee: Monthly account keeping fee

Why: This is the main fee that a bank will charge you for keeping your account. It goes in some part to providing the behind the scenes services.

Costs: This fee can range of $0 to $10 a month, depending on your account type and how much you deposit each month.

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Fee: ATM withdrawal fee

Why: This is a fee that the bank will charge for accessing and connecting to the ATM that you make the withdrawal.

Costs: This usually varies from $1 to $3 depending on the owner of the ATM.

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Fee: Foreign transaction fee

Why: This is the fee the bank charges you for converting your money into the local currency.

Costs: Around 2 to 4% of the total withdrawal amount.

TIP: Avoid these by using a debit card with no foreign transaction fees

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Fee: Overdraft fee

Why: This is a fee the bank charges so that you can spend more than you have in your account.

Costs: It can be around $10 to $15 dollars depending on how your account is setup.

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Fee: Card replacement fee

Why: If you lose or damage your card, this will cover the cost of reproducing it.

Costs: Depending on the urgency, this can be between $5 and $20

Compare before you open an account

So now you know about the fees that you might get charged with your new debit card, you can compare these fees before you open an account. When you compare different debit cards you’ll be able to choose one that suits your needs and spending habits. You might even find one that has cashback, rewards or other perks!