ATM vs debit
 

I just received my USAA statement and noticed that there is a foreign transaction fee amounting to about 1.5% listed for my ATM withdraws with my debit card. Prior to leaving, I had the debit portion turned off so it was only a ATM card.
When using this card earlier this year, there was no transaction fee. USAA still refunds any transactions fees incurred at US ATMs.

Has anyone else seen this? I looked at my USAA fine print and there is a 1% fee for credit card transactions but nothing listed about the debit/ATM card.

Yes, they are passing on the fee imposed by Mastercard for foreign transactions. I live in the UK, and keep track of my account on the USAA website. An annoying feature of this new charge is that when I use the card to buy £, the $ amount of the ATM withdrawal appears on the account immediately, and then two or three days later it changes when the fee is added.

I would give them a call and see what they have to say. I have a USAA credit card, but have not used their bank ATM card. ((b))

Yes indeed. Visa or Mastercard is now handling those foreign transactions for the banks. As a result the bank does add that usual 1% (1.5% is new to me) for foreign ATM fees.

My good news was that although BankofAmerica did that to me this summer, when I carefully checked, I found that all those withdrawals had an exchange rate of exactly 1% below the XE rate for that day. So after they added a 1% fee on, I was still paying the exact XE exchange rate. I don't care if they charge me 25% for all my ATM withdrawals if they're going to also discount them by 25% first!

So let's see, for every $1000 I spend, I incur a whopping $15 in charges? Look, I'm probably the cheapest SOB that ever inhabited this board, but even I can handle that. The convenience of not carrying around a wad of bills or going to one of those rip-off exchange kiosks makes $15 sound like chump change.

Zeus, bottom line is, I'm with you.
I've said that before. I'm a few thousand miles away from home and my bank where I keep my money. The bank has given me a special card (for free) that I can put in a machine at that distance and at any time of day or night in seconds I get my money that is really thousands of miles away. What's more they give it to me in a different form of currencey than I deposited, so it is all ready to spend. And I should complain because they want to actually charge me a couple dollars to do that for me?

Hi Nib,

As noted, they are passing through the MC/Visa 1% conversion fee.

Do they also charge an out of network fee?

Some banks charge $5 per transaction.

((I))

Here in the UK we have the same problem. However, the Nationwide [a building society rather than a bank] makes no charge for ATM withdrawals whilst abroad, whereas my bank. Lloyds, makes quite a high charge [can't remeber how much as I don't use it any more when out of the country].
I suupose they rely on people not realising we have a choice.

ira: no, they don't charge an out of network fee. For withdrawals in the US, they even refund the charges when using other banks' ATMs. You can make up to ten ATM withdrawals each month without incurring a fee from USAA.

USAA was originally a company set up to provide automobile insurance for military officers. Over the years they expanded their services to include other insurance products and banking services. Several years ago members voted to allow enlisted personnel to join the USAA family.

I agreed with Zeus and Neo. When I was in Dijon in April, I withdrew from ATM 3 times. Each was the max per day. My bank, which is local, charged my account $2 per transaction. I think it was fair. I paid for my convenience. The bank is in business to make somce money.

Suggestion: The credit card businesses as well as the debit/check card ones have managed to obfuscate their actual costs so that it is near impossible to render an actual percentage cost. Use a small notebook and daily record the 'bank rate' of the currency you are using. Later compare your statement figures against those numbers. For budget purposes use 5%. This is the premium cost that you will pay as you spend USA dollars in a foreign country.

It's like a moving target determining what method of payment gives the best exchange. I used to use my credit card, then those pesky foreign currency fees. Then I switched to my BOA ATM, but they had fees. Next I switched to my USAA ATM (not debit card).

Nibblette got me to look at my online USAA bank statement and credit card statement for the same just completed trip. I got a better exchange rate with my credit card than withdrawl with my ATM card on the same day, so I guess it's back to the credit card.

the Cirrus receipt I received from the ATM in Spain stated the amount in dollars and Euros. The dollar amount on my online bank statement matches the amount on my receipt. There is no separate foreign transaction charge listed on the credit card statement or the online bank statement.