When in a foreign country, one big hassle is finding the best exchange rate, and though it is as simple as locating an ATM, the withdrawal is challenging. All the cash withdrawals irrespective of the size are always exchanged based on the exchange rate of that day. Well, if you are not cautious enough, you might end up paying fees that may leave you with little money.
Read below and remember it when using a Foreign ATM.
Foreign ATM Fees
Many bank ATMs overseas charge fees. In a few cases, the cost is taken if you are not a member of the particular bank. To prevent this, you must check with the foreign banks that are partners with your local bank. Nevertheless, a few ATMs charge all its users. Here are the four different types of fees charged and you must know.
Transaction ATM fee
This kind of fee is applicable when you are using a foreign ATM. A lot of banks charge higher prices for international withdrawals. You may be required to pay a percentage of the withdrawal you make (usually it is between 1-3%) or a flat rate (fixed by the bank).
A Conversion Charge
Nowadays, larger banks ask for a ‘conversion fee,’ and it is additional between 1 to 3% of the transaction. It is hidden surcharge banks take for foreign ATM withdrawals. It is prevalent with Australia, British and American banks. It implies that you will contribute an ATM fee and a certain percentage of the amount withdrawn.
Poor ATM Exchange Rates
The ATM exchange rates are connected to the interbank currency rates also to the financial market worldwide. The rates vary but may remain at the same figure for many months together. With a fast Google search, one can learn about the latest exchange rate. One can also employ an online currency converter to see the worth of your money at Ottawa Currency Exchange and many other places.
The decision rests with you whether or not the ATM is offering a fair rate. There are surprises for sure.
A surcharge is charged by an ATM towards the fee for taking services of the machine. But it won’t come as a surprise. The device will seek permission before proceeding with the withdrawal process. One can avoid this by using ATMs at post offices or significant banks. Independently owned ATMs or smaller banks are danger zones for surcharges.
You may or may not know this, but your card is connected to more than a million ATM worldwide via a financial computer system. It is also known as the interbank network. Within this network, you can undertake transactions at any of the ATMs. For instance, the Cirrus network is the owner of Cirrus, Maestro, and Mastercard. If you spot any of these logos on an ATM, kindly understand it is a part of the Cirrus network. Fortunately, every system has an online ATM locator for you to locate the nearest ATM.
These include the following:
· Cirrus network (Maestro and Mastercard)
· PLUS Network (Visa)
· Maestro Network (Maestro and Mastercard)
As you know the facts, remain cautious of how and when you are withdrawing from.
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