ATM Exchange Rates?
May 15th, 2003, 08:23 AM
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ATM Exchange Rates?
OK, the way I understand it is that you get a "better" exchange rate when you withdraw money from an ATM machine with a debit card. But what do you mean by better? For example, as I write this, the Euro/Dollar rate is app. 1Euro = $1.15. If I was in, say, Paris and wanted to withdraw 100Euro, what would it cost me? $115? I'm guessing not . . . probably somewhat more . . . but how much?
I'm just trying to get a handle on this whole money converstion thing! =0)
Thanks in advance,
Jennie
I'm just trying to get a handle on this whole money converstion thing! =0)
Thanks in advance,
Jennie
May 15th, 2003, 08:36 AM
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You get a better exchange from an ATM because the cards get sort of a bulk rate. And it probably will be something above the actual exchage rate, though not much. Exchanging travellers cheques will get a worse rate, though it's not really that noticable unless you exchange a lot of money. But I figure saving ANY amount is good thing. Another thing to keep in mind is that you aren't paying commission when you take money out of an ATM. The only thing you might pay is whatever fee your bank might charge. Plus ATM's are easier and more convenient than seraching around for the best rate at an exchange place.
Anne
Anne
May 15th, 2003, 08:39 AM
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Hi Jennie,
Currency exchange rates change daily. The point of the ATM is that you get a better rate, on a given day, than you would get from a bank or other money changer.
100E would cost you about $117 - $120 plus whatever your bank charges.
Currency exchange rates change daily. The point of the ATM is that you get a better rate, on a given day, than you would get from a bank or other money changer.
100E would cost you about $117 - $120 plus whatever your bank charges.
May 15th, 2003, 09:09 AM
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Jennie:
Last fall I used the Barclay's Bank ABM's in Kenya & the UK, they are aligned with my bank in Canada and this past March I used various ones in Budapest & Vienna as there were no 'partners' for my bank in those areas ...
In all cases the exchange rate that my bank charged varried by the day the transaction was posted & while I didn't track the exchange rate while I was away the transactions were within a fraction of a % of the listed exchange rate when I returned (most money changing shops were charging a 1-2% 'transaction fee') ...
As for the Barclay's ABM I used, my bank charged no additional fees while the non-'partner' ABMs there was an additional transaction fee but that was the exact same fee as if I'd used another Bank's ABM here in Canada.
Hope this helps ...
Z
Last fall I used the Barclay's Bank ABM's in Kenya & the UK, they are aligned with my bank in Canada and this past March I used various ones in Budapest & Vienna as there were no 'partners' for my bank in those areas ...
In all cases the exchange rate that my bank charged varried by the day the transaction was posted & while I didn't track the exchange rate while I was away the transactions were within a fraction of a % of the listed exchange rate when I returned (most money changing shops were charging a 1-2% 'transaction fee') ...
As for the Barclay's ABM I used, my bank charged no additional fees while the non-'partner' ABMs there was an additional transaction fee but that was the exact same fee as if I'd used another Bank's ABM here in Canada.
Hope this helps ...
Z
May 15th, 2003, 09:14 AM
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It depends on the comparison. In Paris, I get travelers' checks cashed for about 2-3 pct over interbank rate and there is no fee on top of that rate, so that's as good as many credit cards, and could be better than an ATM if you have a large ATM fee and withdraw small amts. I have also gotten close to that rate in Prague.
Other places charge a lot more for TCs, espec Austria in my experience, UK is about in the middle (as long as you don't exchange at the airport or worst Chequepoint place in the city). I'd say on avg, you might spend about 8 pct over interbank rate exchanging TCs.
What else are you comparing to? You can't use credit cards for withdrawing cash without paying a fortune.
Other places charge a lot more for TCs, espec Austria in my experience, UK is about in the middle (as long as you don't exchange at the airport or worst Chequepoint place in the city). I'd say on avg, you might spend about 8 pct over interbank rate exchanging TCs.
What else are you comparing to? You can't use credit cards for withdrawing cash without paying a fortune.
May 15th, 2003, 09:56 AM
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Hi everyone:
Thanks for the replies!
Christina, I'm not really comparing it to anything else, exactly. I was basically just curious as to how much, if anything, over and above the bank rate I'd pay for a cash withdrawal for basic budgetary purposes. I'm a few percentage points aren't really that big of a deal, but, when it comes to money, I'm very anal and I just wanted to have an idea of what to expect.
What's great for me is that my bank doesn't charge me a fee for using ATMs overseas. So I'm all set!
Thanks again. You folks on this board are great!
Jennie
Thanks for the replies!
Christina, I'm not really comparing it to anything else, exactly. I was basically just curious as to how much, if anything, over and above the bank rate I'd pay for a cash withdrawal for basic budgetary purposes. I'm a few percentage points aren't really that big of a deal, but, when it comes to money, I'm very anal and I just wanted to have an idea of what to expect.
What's great for me is that my bank doesn't charge me a fee for using ATMs overseas. So I'm all set!
Thanks again. You folks on this board are great!
Jennie
May 15th, 2003, 10:25 AM
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Please let me know if I am wrong, but doesn't the bank who owns the ATM machine also charge a fee as does your own bank?
Also, I was in Dublin and found out after I returned to the US that the ATM was converting in UK pounds rather than the Rebublic of Ireland's currancy and exchange rate. I was paying lots more than expected.
Also, I was in Dublin and found out after I returned to the US that the ATM was converting in UK pounds rather than the Rebublic of Ireland's currancy and exchange rate. I was paying lots more than expected.
May 15th, 2003, 10:34 AM
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I get confused with this, too. To have a small amount of money for my first day in Dublin next week, I went to the American Express office here in Atlanta and paid $136 for 120 Euros. They said it was a flat $4 fee, but the exchange rate was 1.22, which really surprised me. They said the lower rates quoted on the Net (about $1.14 today) are based on a bank-to-bank rate dealing with $1 million or more.
Does this make sense??
Does this make sense??
May 15th, 2003, 11:03 AM
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As near as I can figure, the difference between the bank wholesale exchange rate and the rate I get at an ATM is 1%.
Last year I gathered up all of my exchange receipts, figured the rate I actually paid, and then looked up the published rate for that date to compare the difference.
The problem is that exchange rates fluctuate continually during trading hours. I never could match what I paid with any given published rate for that date. Whether the published rate was the high for the day, the low, the close, the noon check point, or the daily average, nothing quite matched. After studying a bunch of figures, I concluded that the mark up was about 1% and let it go at that.
I know it is less than what I paid once in Switzerland when I discovered to my annoyance that I had stuck a wad of francs in my coat inner pocket. I had no plans to return to France any tine soon, so there was nothing to do but swap for Swiss francs at bank rates. I think I got clipped 4% plus bringing home a few dollars in coins that the bank refused.
The sequel to the story is that I wrote Visa and asked them. At first I got garbage answers. I persisted and some joker told me to do two things:
shut up and go away. It was perhaps a little politer than that, but in essense that was the message.
Last year I gathered up all of my exchange receipts, figured the rate I actually paid, and then looked up the published rate for that date to compare the difference.
The problem is that exchange rates fluctuate continually during trading hours. I never could match what I paid with any given published rate for that date. Whether the published rate was the high for the day, the low, the close, the noon check point, or the daily average, nothing quite matched. After studying a bunch of figures, I concluded that the mark up was about 1% and let it go at that.
I know it is less than what I paid once in Switzerland when I discovered to my annoyance that I had stuck a wad of francs in my coat inner pocket. I had no plans to return to France any tine soon, so there was nothing to do but swap for Swiss francs at bank rates. I think I got clipped 4% plus bringing home a few dollars in coins that the bank refused.
The sequel to the story is that I wrote Visa and asked them. At first I got garbage answers. I persisted and some joker told me to do two things:
shut up and go away. It was perhaps a little politer than that, but in essense that was the message.
May 15th, 2003, 11:26 AM
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I've not encountered this in Europe, but most (if not all) Canadian banks are now adding a surcharge to an ATM withdrawal if your card isn't one of theirs. You are asked if you want to continue with the transaction, and when you check your slip you see that the fee (about $1.50) was added to the amount withdrawn from your account. My favourite part is that they call it a "convenience fee."
May 15th, 2003, 11:59 AM
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... its been a while since I looked into it but I recall that in Canada that it is a $0.75cnd charge to the vendor per Interac/ABM transaction but the vendor is allowed to charge the user 'whatever they want' (re: whatever the market will bare) for the transaction ...
... as part of their 'loyality programs' many banks absorb that fee if the user does the transaction from one of their branches and a few banks will wave the fee if you use other banks (as long as you keep a specified amount in your account) ...
... but if you go to one of the 'white labeled' ABMs all banks will charge the fee ABM transaction fee AND the 'white labeled' ABM vendor will charge you a 'convienence fee' for using their machine (so a $20 withdrawl from a 'white labeled' ABM in a corner store may have more $3 or more in transaction fees but the same withdrawl at a branch down the street would have none) ...
... as part of their 'loyality programs' many banks absorb that fee if the user does the transaction from one of their branches and a few banks will wave the fee if you use other banks (as long as you keep a specified amount in your account) ...
... but if you go to one of the 'white labeled' ABMs all banks will charge the fee ABM transaction fee AND the 'white labeled' ABM vendor will charge you a 'convienence fee' for using their machine (so a $20 withdrawl from a 'white labeled' ABM in a corner store may have more $3 or more in transaction fees but the same withdrawl at a branch down the street would have none) ...
