ATM charged exessive fees for cash withdraws abroad
Mar 28th, 2008, 10:03 AM
#21
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Canadians, I have a TD account and a Royal Bank Account, both offer no fee foriegn withdrawals. I have used them and they are in fact no fee. These are not standard chequiing accounts, but rather the type you must keep a certain minimum balance in to get the no fee services thrown in, if your balance goes below about 5,ooo, then there is a monthly fee on the account. I just keep the balance up.
Mar 28th, 2008, 03:45 PM
#22
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I can verify that the Fidelity "mySmartCash" debit card does not charge any fees for ATM use, either in the US or overseas. That is, they charge no fees of their own, and if the other bank imposes a fee, it is credited back to your Fidelity account. And there is no currency conversion fee either. I have been using this as my primary checking account for several months, and I am very pleased with it. There are no fees of any kind for the checking account, and it even pays interest, although of course that keeps going down because of what's happening in the economy.
I believe that Capital One also offers an interest-paying money market account with a debit card, which does not charge currency transaction fees. But it has more restrictions on the daily withdrawal amount and on the number of checks you can write than the Fidelity account.
Bozama, it is interesting that your TD Canadian account does not charge currency fees. I was using TD Bank North in the US, but they did impose a fee for using ATMs abroad, as well as a currency conversion fee.
I believe that Capital One also offers an interest-paying money market account with a debit card, which does not charge currency transaction fees. But it has more restrictions on the daily withdrawal amount and on the number of checks you can write than the Fidelity account.
Bozama, it is interesting that your TD Canadian account does not charge currency fees. I was using TD Bank North in the US, but they did impose a fee for using ATMs abroad, as well as a currency conversion fee.
Jun 12th, 2008, 10:49 AM
#23
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An update on this topic: Thanks to some of you, I looked into getting an ATM card from my brokerage account (TDWaterhouse). It works out excellently. No fees whatsoever and you get exact international exchange rate for withdrawing money from ATM abroad. Even though my receipt shows the local ATM charging a fee, it doesn't show up on my TDWaterhouse statement.
Jun 12th, 2008, 12:07 PM
#24
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i lose about £7 on average for a €250 withdrawal when using my uk bank cards in a eurozone country. so much for the european 'union'. and even within the eurozone, the banking/payment system is far from being integrated from country to country. our backward banking system is a huge drag on our ability to be competitive globally.
Mar 8th, 2009, 12:46 PM
#25
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Thanks to all but...there is a danger with any debit card because you are not protected against theft or fraudulent use as you are with a credit card; it may be "penny wise, pound foolish" to use a debit card abroad to avoid credit card fees. But...if you take a cash advance with a credit card, they start charging you interest from the moment you get the cash. What to Do???
Mar 8th, 2009, 01:09 PM
#26
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I like my Capital One money market account for traveling and getting cash. It gives you an ATM card, so you do avoid the debit card danger.
The exchange rate looked good, about the standard bank rate that I could see by googling. I was not charged a fee by Capital One and neither did the ATM. If it matters .. I used it only at bank ATMs in Great Britain.
My credit card of choice for abroad is also Capital One .. currently not charging any foreign transaction fee (fingers crossed it stays that way).
The exchange rate looked good, about the standard bank rate that I could see by googling. I was not charged a fee by Capital One and neither did the ATM. If it matters .. I used it only at bank ATMs in Great Britain.
My credit card of choice for abroad is also Capital One .. currently not charging any foreign transaction fee (fingers crossed it stays that way).
Mar 8th, 2009, 01:31 PM
#28
Humanone: You topped a year old thread (w/ some inaccurate info in it BTW - plus several banks have changed there policies in the last year) to post "<i>Thanks to all but...there is a danger with any debit card because you are not protected against theft or fraudulent use as you are with a credit card"</i>
That is not necessarily true. I am covered for any fraudulent use of my ATM card over $50 - and not even $50 if I notify the bank immediately (which isn't <i>always</i> possible of course)
That is not necessarily true. I am covered for any fraudulent use of my ATM card over $50 - and not even $50 if I notify the bank immediately (which isn't <i>always</i> possible of course)
Mar 8th, 2009, 01:47 PM
#29
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Well it's an old thread but here goes...
1. As I stated a year ago, the rules of the shared teller networks prohibits international transactions from being charged by the originating bank. Thus if you have a US debit or ATM card, and use a British bank's ATM, the British bank will not charge you any fee.
2. As noted, cirrus is owned by mastercard and plus by visa. When you use an ATM or debit card through either network, they charge a 1% fee on top of the interbank rate for the conversion. To the best of my knowledge, almost every bank (even those that advertise no fee such as USAA or Fidelity or Schwab Bank) pass this 1% fee along. It is buried in the final conversion but it is there (used Fidelity this past January and was charged 1% above interbank but no other fees).
3. As with credit cards, your bank is free to add on whatever it feels it can gouge you with for a foreign transaction fee. I know Citibank, which is broke, charges an additional 2% to make the total charge 3% (this is relatively new on the debit/ATM front, for years they gouged their credit card customers with the 3%).
4. Your bank is free to charge whatever other fee it feels it can gouge you with. As noted Bank of America has a network of banks (Barclay's in the UK, I think BNP in France but wouldn't swear to it) where they don't charge fees. For out of network withdrawals, they may allow 1 or 2 free per billing cycle (wouldn't be surprised if that's been stopped, they're broke too) and then $5 per.
5. Using a debit card (visa or mc) in theory gives you the very same protections as a credit card but there is a huge difference. If the number is stolen and the card is cloned, actual money comes out of your checking account. Many of your outstanding checks may turn to rubber. In general, you will get your money back relatively quickly in most cases but with all the aggrevation of having to get new checks, redoing your automatic debits etc. At least with a credit card, you may receive a bill for thousands of dollars but it will be cleared up before any money actually leaves your hands (although again if you use your credit card for automatic debits, you have the headache of changing the information)....
1. As I stated a year ago, the rules of the shared teller networks prohibits international transactions from being charged by the originating bank. Thus if you have a US debit or ATM card, and use a British bank's ATM, the British bank will not charge you any fee.
2. As noted, cirrus is owned by mastercard and plus by visa. When you use an ATM or debit card through either network, they charge a 1% fee on top of the interbank rate for the conversion. To the best of my knowledge, almost every bank (even those that advertise no fee such as USAA or Fidelity or Schwab Bank) pass this 1% fee along. It is buried in the final conversion but it is there (used Fidelity this past January and was charged 1% above interbank but no other fees).
3. As with credit cards, your bank is free to add on whatever it feels it can gouge you with for a foreign transaction fee. I know Citibank, which is broke, charges an additional 2% to make the total charge 3% (this is relatively new on the debit/ATM front, for years they gouged their credit card customers with the 3%).
4. Your bank is free to charge whatever other fee it feels it can gouge you with. As noted Bank of America has a network of banks (Barclay's in the UK, I think BNP in France but wouldn't swear to it) where they don't charge fees. For out of network withdrawals, they may allow 1 or 2 free per billing cycle (wouldn't be surprised if that's been stopped, they're broke too) and then $5 per.
5. Using a debit card (visa or mc) in theory gives you the very same protections as a credit card but there is a huge difference. If the number is stolen and the card is cloned, actual money comes out of your checking account. Many of your outstanding checks may turn to rubber. In general, you will get your money back relatively quickly in most cases but with all the aggrevation of having to get new checks, redoing your automatic debits etc. At least with a credit card, you may receive a bill for thousands of dollars but it will be cleared up before any money actually leaves your hands (although again if you use your credit card for automatic debits, you have the headache of changing the information)....
Mar 8th, 2009, 01:55 PM
#30
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If American banks would adopt the chip/PIN system we wouldn't have these problems, I think.
It is my understanding that an ATM card and debit card are different. I just opened a new bank account and specified an ATM card rather than a debit card because of the $50 liability limit.
As for Cap One they are stinkers. I have never missed a payment with them or any other card, have an 800+ credit rating, own my car and house clear, yet they just notified me of an increase in APR from 12.9% to 17.9%. It's all moot and a waste of paper on their part because I pay in full every month anyway. The only thing I put on the card is my gas and electric bill but now I am going to switch that over to my NWA/USBank Visa card.
It is my understanding that an ATM card and debit card are different. I just opened a new bank account and specified an ATM card rather than a debit card because of the $50 liability limit.
As for Cap One they are stinkers. I have never missed a payment with them or any other card, have an 800+ credit rating, own my car and house clear, yet they just notified me of an increase in APR from 12.9% to 17.9%. It's all moot and a waste of paper on their part because I pay in full every month anyway. The only thing I put on the card is my gas and electric bill but now I am going to switch that over to my NWA/USBank Visa card.
Mar 8th, 2009, 03:31 PM
#31
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<i>As for Cap One they are stinkers. I have never missed a payment with them or any other card, have an 800+ credit rating, own my car and house clear, yet they just notified me of an increase in APR from 12.9% to 17.9%.</i>
Hi spaarne,
I am happy with my Capital One cards so defending them a bit, here.
Many of the credit cards are upping rates, not just Capital One. My Citi card did the same. Let me check my latest Cap One statement ... the rate is up a couple of points, but not as much as Citi jumped.
Neither company will benefit; however, because like you, I pay in full. Cheers.
Hi spaarne,
I am happy with my Capital One cards so defending them a bit, here.
Many of the credit cards are upping rates, not just Capital One. My Citi card did the same. Let me check my latest Cap One statement ... the rate is up a couple of points, but not as much as Citi jumped.
Neither company will benefit; however, because like you, I pay in full. Cheers.
Mar 9th, 2009, 10:25 AM
#33
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An ATM card allows you to withdraw money from an ATM machine. Period. A debit card allows you to make a purchase with the card.
Some ATM cards are also debit cards. Some ATM cards are "ATM only" and do not work as debit cards.
Some ATM cards are also debit cards. Some ATM cards are "ATM only" and do not work as debit cards.
Mar 9th, 2009, 10:59 AM
#34
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Hello spaarne, I just noticed your post about your having a NW/US Bank credit card. I do not know if you know this or not but since Northwest will be taken over by Delta starting sometime in the fall the NW/US Bank credit cards will then no longer have the frequent flyer miles as Northwest will no longer exsist. The email I received from Northwest said to obtain a credit card that will give Delta frequent flyer miles one has to apply for an American Express Delta card.
Mar 9th, 2009, 11:17 AM
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In all the years I've had one (MANY!), I've never heard of an ATM card that only allows you to withdraw cash from an ATM machine. I have heard of the difference between ATM/debit cards that can be used whereever they take credit cards, and ATM/debit cards that require a P.I.N. terminal (like my gas station, which doesn't take credit cards, but does take ATM/debit cards).
Mar 9th, 2009, 02:18 PM
#36
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yep, or at least at my local bank, you can get an ATM card with a checking account or you can have a debit card with the checking account, used at the ATM and at businesses like a credit card but the money coming straight out of the checking.
You cannot have both, but must choose. Which reminds me, my debit card expires this month. Better get in and ask about a new one!
You cannot have both, but must choose. Which reminds me, my debit card expires this month. Better get in and ask about a new one!
Mar 9th, 2009, 02:28 PM
#37
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<I>xyz123 on Mar 8, 09 at 05:47 PM
2. As noted, cirrus is owned by mastercard and plus by visa. When you use an ATM or debit card through either network, they charge a 1% fee on top of the interbank rate for the conversion. To the best of my knowledge, almost every bank (even those that advertise no fee such as USAA or Fidelity or Schwab Bank) pass this 1% fee along. It is buried in the final conversion but it is there (used Fidelity this past January and was charged 1% above interbank but no other fees).</i>
Well, Fidelity might, but Schwab doesn't. I can show you any transaction reconciliation from xe.com/ccc and the rate is zero in every case (within rounding/float error). The total cost of my use of Schwab cards is zero point zero.
2. As noted, cirrus is owned by mastercard and plus by visa. When you use an ATM or debit card through either network, they charge a 1% fee on top of the interbank rate for the conversion. To the best of my knowledge, almost every bank (even those that advertise no fee such as USAA or Fidelity or Schwab Bank) pass this 1% fee along. It is buried in the final conversion but it is there (used Fidelity this past January and was charged 1% above interbank but no other fees).</i>
Well, Fidelity might, but Schwab doesn't. I can show you any transaction reconciliation from xe.com/ccc and the rate is zero in every case (within rounding/float error). The total cost of my use of Schwab cards is zero point zero.
Mar 9th, 2009, 02:32 PM
#38
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After my first VISA-logo debit-ATM card a dozen years ago, which I mistakenly used for a large purchase that wiped out my checking account a few days before I was ready for that expenditure, I have insisted on ATM-only cards. It usually takes an extra step, like going into a bank branch to turn in the debit card that they automatically send at replacement time.
I feel safer knowing that the ATM card cannot be used without with a PIN and that it won't work if I carelessly present it in a shoe store, for example. I also like not having money going out of my account immediately when I could have the 3-5 week float from a credit card.
I feel safer knowing that the ATM card cannot be used without with a PIN and that it won't work if I carelessly present it in a shoe store, for example. I also like not having money going out of my account immediately when I could have the 3-5 week float from a credit card.
Mar 9th, 2009, 03:20 PM
#39
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<i>I also like not having money going out of my account immediately when I could have the 3-5 week float from a credit card.</i>
I'm the other way. I prefer not to use a credit card except for large expenditures, so I like (LOVE) my debit card.
I'm the other way. I prefer not to use a credit card except for large expenditures, so I like (LOVE) my debit card.
Mar 9th, 2009, 04:09 PM
#40
sf7307: "<i>In all the years I've had one (MANY!), I've never heard of an ATM card that only allows you to withdraw cash from an ATM machine.</i>"
Most ATM cards are automatically issued as debit cards nowadays. But one can always ask their bank/credit union to issue and "ATM only" card instead. It will not have the visa logo on the back but is still useable in any ATM machine that has the star/cirrus/whatever logo it has.
Some people prefer an ATM-only card because one cannot normally be used it for purchases.
Most ATM cards are automatically issued as debit cards nowadays. But one can always ask their bank/credit union to issue and "ATM only" card instead. It will not have the visa logo on the back but is still useable in any ATM machine that has the star/cirrus/whatever logo it has.
Some people prefer an ATM-only card because one cannot normally be used it for purchases.
