ATMs and currency conversion fees in Europe
Throughout Europe, ATMs are the easiest and smartest way for travellers to change money. You’ll pay withdrawal fees, but you’ll still get a better rate than you would exchanging dollars for local cash at a currency exchange booth.
ATMs and currency conversion fees are the fees that many banks and interbank networks charge for the use of their ATMs. In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users.
Two types of purchaser charges exist: the surcharge and the foreign fee. The surcharge fee may be imposed by the ATM owner and will be charged to the consumer using the machine. The foreign fee or transaction fee is a fee charged by the card issuer (financial institution) to the consumer for conducting a business deal outside of their network of machines in the case of a financial institution.
Many banks add a 2-5% conversion fee, a commission of about one percent, and a transaction fee each time you use an ATM. The ATMs you use might charge its own fee, too. To limit these unnecessary fees, make fewer visits to the ATM and withdraw larger amounts.
Different types of foreign atm’s and currency conversion fees
Most bank ATMs charge fees. In some cases, these fees are charged only if you aren’t a member of that particular Bank. To stay away from these fees, check what foreign banks your local bank partners with. Some ATMs, however, charge all users.
Fee 1: An international or transaction atm fee
Many banks charge higher fees for overseas withdrawals from ATM’s. You’ll either pay a flat rate (between £1-5 or $1-5) or a percentage of your total withdrawal (generally between 1-3%).
Fee 2: A conversion charge
These days most banks add an extra ‘conversion fee’ of between 1-3% of the transaction. It’s an adverse hidden surcharge that banks often charge for foreign ATM withdrawals. These fees are most familiar from American, British and Australian banks.
Which means it’s likely that you’ll pay a shared flat fee for using an ATM network, plus a percentage of the value of the withdrawn cash.
Fee 3: A surcharge
An extra charge is added by the ATM as a fee for using the machine.
The good news is you’ll be alert on ATM screen and it will ask your acceptance to continue with the transaction. Your best chance of avoiding this might be to use ATMs at major banks or post offices. Smaller banks and separately owned ATMs indicate a higher risk of surcharges.
Fee 4: Poor atm exchange rates
ATM exchange rates are all joined to the interbank currency charges trade on the global financial market. The rates normally change, but will likely float around the same figure for months at a time.
With a rapid Google search, you can find out what the currency current exchange rate is. Or just use an Online Currency Converter to find out how much your money’s worth.
Next Page : Reducing your hidden ATM conversion fees