I seem to go through this every time I or one of my kids goes abroad. For a while, I think Capitol One’s ATM cards had no foreign fees at all (or maybe I am misremembering that) but presently both of our banks – Capitol One and Chase – impose a 3% foreign transaction fee. (Chase also adds another charge for using a non-Chase ATM.)
So here’s my question – even with the 3% fee, is the ATM still the best option? I realize sometimes there won’t be a choice, but assuming it is an option, would it be better to exchange American dollars for foreign currency at a bank? Or even a currency exchange business? I have read that the exchange rate for exchanging cash is not as good as using the ATM, but the 3% fee might in the end make the ATM the less desirable option.
What do you frequent foreign travelers do when you need foreign cash?
Capital One credit cards do not have a conversion surcharge when charging purchases in foreign currency.
If your bank has affiliate banks in the other countries (e.g. Citibank or HSBC in many countries, TD Bank for Canada), then there may be reduced or no conversion surcharge at the affiliate bank’s ATM.
My D is leaving for Japan today. She ordered a sizable amount of Yen through her bank, and will be traveling with that on her person. I don’t know how much she paid in conversion fees (I assume there were conversion fees).
I just use the ATM when I travel and don’t worry about it.
It’s just a short term trip. Consider how many times you’ll actually be using an ATM-- 2 or 3 times? Put the fee in perspective of how much u overpay for a Starbucks cup of coffee and probably don’t give it a second thought.
It’s not like you’re living in the country & withdrawing money weekly over the course of years.
I convert ahead of time through my personal bank (Citibank) and carry the cash. I don’t pay any fees either way and I think it’s simpler than tracking down an ATM. I would have anywhere from $200-$500 depending on length of trip. I always carry too much and then just save the currency for my next trip.
Use a credit card that doesn’t charge foreign transaction fees and get cash from an ATM and like GMTplus 7 says, don’t fret about the ATM fee. Take out enough so that you are not hitting the machine constantly.
You can usually convert dollars for other currency as you come into arrival halls in most overseas airports. But I don’t worry about the ATI fees either.
I get far better rates through my bank than through airports. Airport arrivals are for suckers - they know they’ve got you. I wouldn’t use them except for emergencies.
I don’t think it’s smart to be the “obvious American” esp in a country where you don’t share ethnicity to be standing there taking out money at an ATM. Might as well just paint a “rob me, I don’t know the language” sign on your bank.
I still can’t figure out how I got pickpocketed after using an ATM in the Minneapolis airport. Wow, they were good.
On our last trip to Europe, I opened an account at our local credit union. They had no foreign transaction fees and no fees for using the ATM. We used the card frequently, with no problems.
I do exchange a few bucks at the airport. I hate to be without money for cabs or transportation fares. I have an account with HSBC and can withdraw in local currency. I also have a credit card with zero foreign transaction fee. Before I had the account oversea, I usually go to Barclays to withdraw cash because it has a relationship with Bank of America, which is my bank.
Cap One for my CC and Schwab debit for ATM. Schwab debit card waives the transaction fee. You need to have a checking account which I do for the express purpose of travel needs.
Unless the place was very homogeneous to the point where your race/ethnicity is extremely unusual (i.e. they do not have significant numbers of domestic ethnic minority people whom you may plausibly resemble), how would it be obvious that you are a visitor by race/ethnicity, as opposed to a local resident of a some domestic ethnic minority group using the ATM? (This can apply even when traveling domestically in the US, though more likely for people who are not white.)
Gee, ucb, China, Japan, and India don’t have significant ethnic minorities that I, a fair-skinned white woman, physically resemble. I was in rural India in late March and was in villages where all the locals came to stare at me and pat my hair since they’d never seen a while woman before. I’m not talking about Europe.
I dont like to use an ATM that isn’t my home bank since I resent paying the fees, and I think it’s a waste of my time whether on vacation or business to schlep around trying to find one. It feels disorganized to me when I could have taken care of it ahead of time. Other people feel differently and so the world turns.
I like obvious, simple solutions. I order foreign currency online. No fee and a better exchange rate than airports. I go to the bank and pick it up on Saturday. Done and done. Why would you want to stand in an airport and do this and be at the mercy of a broken ATM or crappy exchange rate? Why would you publicly “announce” you’ve just withdrawn cash?
My D went to Europe last year and I wanted to get her euros. My local Citibank tried to see if the Citibank in her college town would let her pick it up there but they wouldn’t let her as she doesn’t have an account. My local Citibank apologized and fedexed her a package with the euros I had requested. No charge to me. What could be simpler?
“dont like to use an ATM that isn’t my home bank since I resent paying the fees,”
Schwab rebates all fees imposed by the non Schwab bank. Truly a no charge option. D lives in Europe and still uses her Schwab account and I opened one expressly for my last trip. Well worthwhile and their customer service is spot on. Now I use it here as well so that I can use any convenient ATM without penalty.
Obviously you should exercise caution and not use an ATM in a sketchy area, but aside from that, I’m not sure what the issue is. Every ATM I’ve used around the world has functioned pretty much the same and I’ve yet to come across one that did not have English as an option for instructions. However, if an ATM makes you uncomfortable, don’t use it.
Anyway, as GMT said, I would (and I do) just use the ATM and not worry about the fees.
Of you’re in Washington, BECU just eliminated foreign transaction fees.
I dont believe in giving banks more money than I have to, so I would never order foreign currency from them or from AAA or any other dealer. ATMs will process the transaction at interbank rates, which is better than what you’ll get from any currency seller.
In all the business and personal trips my family and I have made to Western Europe there has never been a problem using an ATM or credit or debit card.
Use the normal precautions and you’ll be ok.
With the areas I’ve gone to, it’s a risk I’m not willing to take. I’ve ordered ahead of time, converter once at an airport, or a mix. The trip have been relatively short (less than a month) and dispersing the money was no problem.