Discover the things you should be aware of when using a foreign ATM
Using an ATM while abroad can be a very convenient way of getting your hands on some foreign cash and carrying large sums of cash with you whilst travelling isn’t advisable for security reasons. Therefore, withdrawing money using yourdebit cardfrom foreign ATMs is an excellent option to have.
However, as convenient as it is, there are several things to consider before using your debit card abroad to withdraw cash. For example, one piece of advice is to use a debit card rather than a credit card towithdraw money from an ATM. Taking out cash using your credit card can lead to high-interest charges on cash advances from your card issuer.
In this blog post, discover some additional things you need to take into account when using an ATM abroad.
Are You Getting the Best Exchange Rate?
If you have used a foreign ATM before, you may be familiar with the option of being charged in your home currency or in the local currency of the country you are in.
By charging you in your home currency, the ATM operator will conduct what is known as Dynamic Currency Conversions (DCC). A DCC transaction will show you on screen how much money you will pay in your home currency for the withdrawal.
However, this also means that the local operator sets the rate of exchange. DCC can be an option that looks appealing as it lets you know exactly how much is coming out of your home account. It has been found that DCC can also result in you paying a higher charge for the conversion.
To avoid paying a higher exchange rate, you should always take the option of withdrawing your cash in the local currency. That way, the card issuer will set the rate, such as Visa or Mastercard, and will be more competitive.
Give Your Banking Provider a Heads-Up
If you are travelling abroad and intend to use ATMs while in another country, it may be a good idea to let your bank know in advance. If the bank notices that yourdebit cardis being used in another country, this will set off a fraud alert.
Your banking provider may assume that your card has been stolen and could immediately put a freeze on it if they notice it would be suspicious activity.
A quick call to your bank to let them know when you are travelling and where you’re heading, will make sure that any activity that appears out of the ordinary can be easily explained.
Stick to Trusted Providers ATM Providers Whilst Abroad
Although your bank may not have branches abroad, there is a good chance that they will be affiliated in some way to major banks in other countries. Where possible, you should use ATMs operated by these banks.
For a start, independent operators tend to charge higher fees and may be more challenging to deal with if something goes wrong, such as your card been swallowed by the ATM. It is also advisable to use a foreign ATM during the bank’s regular operating hours. That way you don’t have to wait until the next day if any problems arise.
Foreign transaction fees are charged by your bank for currency conversion. If your bank charges foreign transaction fees — and many do — you'll pay a percentage of the total withdrawal amount, usually 1% to 3%, for using your card at a foreign ATM (or anywhere else abroad).
If you need foreign currency while traveling outside of the U.S., ATMs are your best bet for bills you can spend locally. ATMs tend to offer competitive exchange rates, and you can save on ATM fees by withdrawing more cash than you need instead of withdrawing smaller sums several times during your trip.
The non-Bank of America ATM usage fee is $5. This fee is assessed for each withdrawal or transfer performed at a non-Bank of America ATM in a foreign country. In addition, the ATM operator may charge an access fee for cash withdrawals.
How much is the international ATM withdrawal fee? The international ATM withdrawal fee varies from one bank to another, and it typically ranges between 2.50% to 3.50%. How can I avoid transaction fees abroad? You can avoid transaction fees abroad by using credit cards and availing withdrawals from ATMs of your bank.
Yes. Your bank would typically charge you a nominal fee for this service. Please check with your bank for more details. In some cases, there may also be a charge levied by the bank that owns the ATM.
Using an ATM while abroad can be a very convenient way of getting your hands on some foreign cash and carrying large sums of cash with you whilst travelling isn't advisable for security reasons. Therefore, withdrawing money using your debit card from foreign ATMs is an excellent option to have.
With a currency conversion fee between 1% and 3%, and sometimes a nominal transaction charge, ATMs can be one of the least expensive and most convenient ways to get cash overseas—though you might want to check out local currency exchange bureaus, just to compare rates.
Where to Get Good Rates: ATMs and Local Banks. The best place to exchange money is a local ATM or a bank. Many foreign banks are happy to exchange your dollars for local currency for a better rate than you find elsewhere, or you can go to an ATM to skip the line.
A good rule of thumb, though, is that, on average, you should plan to carry between $50 and $100 per day in the currency of the country in which you're travelling.
Discover doesn't charge foreign ATM network or foreign transaction fees. But Discover card acceptance can be limited outside of the U.S., Canada, Mexico and some Caribbean nations. With an HSBC Premier Checking account, customers pay no foreign transaction fees. HSBC also has a worldwide network of ATMs.
The Nomad Card is an international debit card with no opening or monthly maintenance fees, being accepted in over 180 countries. You can use the virtual or physical version, and it also allows you to make free withdrawals at MoneyPass ATMs around the world!
Discover it® Cash Back: Best feature: Cash back on everyday purchases. Discover it® Miles: Best feature: Travel rewards. United Gateway℠ Card: Best feature: United Airlines rewards. Hilton Honors American Express Card: Best feature: Hilton hotel rewards.
Axos Bank is the best option overall because it has more combined benefits than its competitors. With a checking account, you pay $0 in ATM fees throughout the U.S. You also avoid other bank fees such as overdrafts.
One of the forms of payment you bring with you abroad will likely be your home bank ATM/debit card. It provides a convienient way to withdraw money from your home bank account while you are aborad.
If you refuse, your payment network, such as Visa or Mastercard, will convert the currency, and you'll see the conversion on your statement in U.S. dollars. Visa and Mastercard offer exchange rate calculators to give you an idea of what you're being charged upfront.
Where to Get Good Rates: ATMs and Local Banks. The best place to exchange money is a local ATM or a bank. Many foreign banks are happy to exchange your dollars for local currency for a better rate than you find elsewhere, or you can go to an ATM to skip the line.
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