ripoff international ATM transaction fees

[ponyo]

Fees on international ATM transaction for most major US banks are insane. $20 fee on a single $500 withdrawal. Do people just take this crap and pay the ridiculous fees or does everyone bank at Charles Schwab and carry Capital One credit card? Or people just take thousands in cash with them?

 

[RPD]

I just use a CC to avoid having left over denominations that I'd have to take to an exchange place to use.

But you've pretty much covered your options. CC, bring cash in advance or bend over.

 

[shortylickens]

Worst I ever saw was 20 bucks in Isreal, but that was 1998. Maybe its better or worse by now.
And that wasnt withdrawal dependent either. If you took out 20 bucks, you got stung for 20.

 

[ponyo]

Worst I ever saw was 20 bucks in Isreal, but that was 1998. Maybe its better or worse by now.
And that wasnt withdrawal dependent either. If you took out 20 bucks, you got stung for 20.

Oh it's like $5 flat rate plus 3% so if you take out $20, the fee would be $6.50 which is like 33% transaction fee!

 

[dullard]

The 3% will be paid no matter how you do it (with a few rare exceptions). That is what most credit cards charge. Dealing with cash (banks in person and/or money exchangers) and you'll be charged far more than 3%.

You should be happy with just 3% fee. The $5 is a bit high though. I'm usually closer to $3 depending on which bank I use.

 

[dr150]

Get a checking account with Alliant or USAA.

1% foreign ATM fee....and that's about as good as it'll get.

Aside of that, use a Schwab, Capitol One, British Air cc for 0 fees whenever possible.

 

[ponyo]

Get a checking account with Alliant or USAA.

1% foreign ATM fee....and that's about as good as it'll get.

Aside of that, use a Schwab, Capitol One, British Air cc for 0 fees whenever possible.

Schwab has 0% foreign ATM transaction fee and will even reimburse you for fees charged by foreign ATM. That's probably the best one. But I just find it ridiculous that you have to resort to having accounts at different banks just to avoid what are clearly ripoff fees. It wasn't always this way. All these major bogus fees charged by mega banks started about 6-7 years ago. In the past you could use your bank ATM card at participating network of ATMs around the world and not pay all these bogus junk fees. Not so anymore.

 

[dullard]

Schwab has 0% foreign ATM transaction fee and will even reimburse you for fees charged by foreign ATM. That's probably the best one. But I just find it ridiculous that you have to resort to having accounts at different banks just to avoid what are clearly ripoff fees. It wasn't always this way. All these major bogus fees charged by mega banks started about 6-7 years ago. In the past you could use your bank ATM card at participating network of ATMs around the world and not pay all these bogus junk fees. Not so anymore.

Years ago, you were charged the fees, but you never saw them.

For example suppose you wanted to convert $100 into a currency with an exchange rate that is 1:1. Years ago you'd put in $100 and you'd leave with 97 of the other currency. Why? They'd convert it at an unknown to you 1:1.03 exchange rate. No transaction charge. Right?

But what happened to that 1:1 exchange rate? Enough people complained and now they give you the 1:1 rate, but explicitly charge the 3% fee. All it did was move the fee from a hidden one to one that you know about.

 

[xanis]

Schwab has 0% foreign ATM transaction fee and will even reimburse you for fees charged by foreign ATM. That's probably the best one. But I just find it ridiculous that you have to resort to having accounts at different banks just to avoid what are clearly ripoff fees. It wasn't always this way. All these major bogus fees charged by mega banks started about 6-7 years ago. In the past you could use your bank ATM card at participating network of ATMs around the world and not pay all these bogus junk fees. Not so anymore.

It's ridiculous. If I take out money at any other ATM, I get charged that ATM's fee, plus an additional $2 from my bank. I've started buying things for $1 at CVS/Walgreens/etc and just getting cash back.

 

[ponyo]

Years ago, you were charged the fees, but you never saw them.

For example suppose you wanted to convert $100 into a currency with an exchange rate that is 1:1. Years ago you'd put in $100 and you'd leave with 97 of the other currency. Why? They'd convert it at an unknown to you 1:1.03 exchange rate. No transaction charge. Right?

But what happened to that 1:1 exchange rate? Enough people complained and now they give you the 1:1 rate, but explicitly charge the 3% fee. All it did was move the fee from a hidden one to one that you know about.

Yes, the fees might have been hidden but you did not get screwed on the exchange rate. In fact ATM conversion rates were among the best retail customers could get. Same with credit card currency conversions. You got very good rate. The conversion rates were better than any banks you visited in person or money changers. It's false you got screwed with hidden conversion rate penalty in the past.

edit: Credit card part was wrong. You did get screwed with hidden transaction fee in the past. But ATM did give you the best conversion rate.

 

[Krynj]

My bank refunds ALL ATM fees from anywhere in the world.

It's awesome not having to drive to a certain ATM any time I want to get money. Comes in extra handy when you're at a theater, casino, or some other extremely convenient location that has outrageous ATM fees. I haven't paid a cent in ATM fees for years.

 

[DingDingDao]

Fidelity mySmart Cash Account. You'd need a brokerage account with them, but the cash account is FDIC-insured. All transaction fees and all foreign exchange fees are refunded. That's 0%/0%.

 

[feralkid]

C-r-e-d-i-t U-n-i-o-n.

 

[dullard]

Yes, the fees might have been hidden but you did not get screwed on the exchange rate. In fact ATM conversion rates were among the best retail customers could get. Same with credit card currency conversions. You got very good rate. The conversion rates were better than any banks you visited in person or money changers. It's false you got screwed with hidden conversion rate penalty in the past.

edit: Credit card part was wrong. You did get screwed with hidden transaction fee in the past. But ATM did give you the best conversion rate.

Um, no. There is an exchange rate that the markets set. You never got that even with an ATM. Not even close. Credit cards are usually a bit better on that rate. Of course, you are correct that both are better than money converters.

 

[JulesMaximus]

I took $600 Euros with me for spending money last time I went and just used that to pay for everything.

 

[Born2bwire]

I never paid fees like that. I used my credit card though because it gave me a better exchange rate. I still use it over the exchange rates that Paypal or the local merchants charge since it still is better from what I can tell.

 

[spidey07]

I use travelers checks. Don't like paying the 3% CC fee. As good as cash, and secure to boot.

 

[Juked07]

CC usually costs 3% plus some small spread on exchange rate. Small cash exchanges are far worse. The spread is often ~10% wide (~5% each way), plus you have to pay a fee on top of that.

I can't believe these numbers at all. In the real forex markets that institutions have access to, most major currencies trade just a few basis points wide!

They're making orders of magnitude over the real spread when retail customers pay several percent on currency exchange. It's disgusting.

 

[JEDI]

Fees on international ATM transaction for most major US banks are insane. $20 fee on a single $500 withdrawal. Do people just take this crap and pay the ridiculous fees or does everyone bank at Charles Schwab and carry Capital One credit card? Or people just take thousands in cash with them?

yes to both.

also has hsbc as backup (only 1% foreign fee and obviously none if u use a hsbc bank)

btw- how did u get $20? thought only 3% fees was standard, thus $500 x 3% = $15?

 

[spidey07]

CC usually costs 3% plus some small spread on exchange rate. Small cash exchanges are far worse. The spread is often ~10% wide (~5% each way), plus you have to pay a fee on top of that.

I can't believe these numbers at all. In the real forex markets that institutions have access to, most major currencies trade just a few basis points wide!

They're making orders of magnitude over the real spread when retail customers pay several percent on currency exchange. It's disgusting.

That's why they are called "banks". Purpose of bossiness is to make money.

 

[coxmaster]

My bank refunds ALL ATM fees from anywhere in the world.

It's awesome not having to drive to a certain ATM any time I want to get money. Comes in extra handy when you're at a theater, casino, or some other extremely convenient location that has outrageous ATM fees. I haven't paid a cent in ATM fees for years.

My new account does the same. I had to look it up but my bank does refund international ATM fees as well :thumbsup:

 

[lothar]

Fees on international ATM transaction for most major US banks are insane. $20 fee on a single $500 withdrawal. Do people just take this crap and pay the ridiculous fees or does everyone bank at Charles Schwab and carry Capital One credit card? Or people just take thousands in cash with them?

Depends on where I'm going...

If it's Europe or any westernized country, I have Alliant which charges 1%. Also, my rewards checking account reimburses me for *ALL* ATM transaction fees worldwide. If I'm that worried I also have my Barclay's account in London that I can use anywhere in Europe but I've never had to use it

If I'm going to Nigeria, I carry thousands of dollars in $100 bills.
You get more for your money with local converters outside the airport than going to any bank, ATM, or using credit card.

When I traveled abroad, I always buy Wall Street Journal newspaper at the airport gate.
The previous day Wall Street Journal showed $1 = 150.5 Naira. I went to my Nigerian bank and they wanted to give me 147 Naira for $1. I went back to the airport that same day I arrived and the Hausa mullahs gave me 156 Naira for each dollar. If the currency is worth 150 Naira, start your bid at 160 and the mullah would start his at below market rate 148(but his initial price will never be lower than the exchange rates "official" banks offer). He works his way up, you work your way down and sooner or later you'll both agree on price. Nigeria is run by a barter economy system. There are never "official" prices to products and the price offered by the seller are always overvalued.

Here's what I also discovered:
1.) If you give them a $20 bill you get well below market price and they only give you 145 Naira per dollar for it. $50 is somewhere in the middle, but you have to barter like hell with them, and actually start your car before they decide to run after you and agree to your terms. They will never offer above market price for a $50 bill. You can forget about changing $1, $5, $10 bills or coins...Those would almost be virtually worthless.

2.) Have them give their(Naira) money to you first to count based on the "agreed" conversion rate. Give the money to 1 or 2 other persons with you to count and verify it. When you finish counting it you will discover that they cheated you somewhere. Demand the entire amount and they will give it to you. Counting Naira is very intensive. If you take $10,000 there times the 150 Naira conversion rate is 1.5 million Naira. This is further made stupid in that Nigeria's currency bill denominations is 20, 50, 100, 200, 500 and 1,000 Naira MAX. If they change all your dollars to their highest denomination, you have to count 1,500 in 1,000 Naira bills. That's why having two other people to count and verify with you helps. Think about it this way: A 1,000 Naira bill(Nigeria's largest currency denomination) is the equivalent of a $6.67 US dollar bill. Imagine you asking for $10,000 at a US bank with the bank teller giving it to you in all $5 bills.

3.) We always made a profit from them. I don't know what the hell they do with the loss and I don't care either way because once my money is in my hand, it's in my hand. I assume they're converting it back to unsuspecting fools who are traveling or converting local currency the other way back to US dollars. I always convert my money to local currency on the first day because I may usually not have access to internet and since the Wall Street Journal rate is pretty much accurate and it is then that I'm 99.999% certain of the market value. I'm sure it's possible for one to buy Wall Street Journal somewhere in Nigeria, but I don't bother myself with such nonsense.

4.) When traveling back to the US, ALL local currency leftovers is either handed to family members or deposited into my bank account there. I never convert going back the other way because after spending 2-3 weeks with barely any internet, I can't be bothered with trying to find a Wall Street Journal(or whatever local newspaper) with the correct conversion rates. There are local papers that give this information, but I don't know how reliable they are and I've never compared them to Wall Street Journal's numbers.

 

[SSSnail]

Schwab is possibly the best kept secret in banking right now, but don't tell the po people that.

When you withdraw outside, they charge an exchange fee with most banks.

 

[Rumpltzer]

Fees on international ATM transaction for most major US banks are insane. $20 fee on a single $500 withdrawal. Do people just take this crap and pay the ridiculous fees or does everyone bank at Charles Schwab and carry Capital One credit card? Or people just take thousands in cash with them?

Yeah. If you travel a bit, you'll have figured out that you want something like a Charles Schwab ATM card, you might have a Charles Schwab Visa, and then carry a Capital One Visa as back-up.

You seem aware that these things exist. What's the problem?