ATMs vs. Credit Card for purchasing power
#1
Original Poster
Join Date: Mar 2007
Posts: 16
Likes: 0
Received 0 Likes
on
0 Posts
ATMs vs. Credit Card for purchasing power
I've been reading and reading and reading Fodor's postings and now I need to ask -- is it more economical to use one's charge card or -- is it more economical to use ATM for Euros and pay in cash.
#2
Join Date: Jan 2007
Posts: 78,320
Likes: 0
Received 0 Likes
on
0 Posts
for me this year was the first time credit cards were better on the bottom line
previously for years ATMs were better, but now my ATM issuer charges 3% plus a flat ATM transaction fee (no charges from Europe on such fees - only what your local bank charges)
now most credit cards have moved to a universal 3% fee and that's it - so the difference is in the ATM usuer fee - about $5 in my case each time you withdraw money
exchange rates used by both are similar
some cards, like Capital One i guess don't charge anything
and ATM cards all have whatever bank they're thru charges so just call you ATM bank and credit cards and ask what the charges are.
And once in Europe beware Dynamic Exchange or whatever the term is when they write your bill up in dollars and not euros, pounds, swiss francs, etc. - then you probably will get a much poorer exchange rate than if the credit card company converts it from local currency to dollars.
previously for years ATMs were better, but now my ATM issuer charges 3% plus a flat ATM transaction fee (no charges from Europe on such fees - only what your local bank charges)
now most credit cards have moved to a universal 3% fee and that's it - so the difference is in the ATM usuer fee - about $5 in my case each time you withdraw money
exchange rates used by both are similar
some cards, like Capital One i guess don't charge anything
and ATM cards all have whatever bank they're thru charges so just call you ATM bank and credit cards and ask what the charges are.
And once in Europe beware Dynamic Exchange or whatever the term is when they write your bill up in dollars and not euros, pounds, swiss francs, etc. - then you probably will get a much poorer exchange rate than if the credit card company converts it from local currency to dollars.
#3
Join Date: Jan 2007
Posts: 78,320
Likes: 0
Received 0 Likes
on
0 Posts
And i may add that some hotels, etc. may have a surcharge for using credit cards so then using cash would be better.
ATMs hooked to checking accounts or which are debit cards work always IME - those to savings accounts may well not
In either case tell your ATM bank or credit card bank which countries you are going to so they don't block the transaction for security reasons
I also tell them now that these are the only countries i'm going to - this after reading that in Italy somehow they had readers of some type - crooks did to get you ATM number and PIN and then had charges coming in from Romania.
ATMs hooked to checking accounts or which are debit cards work always IME - those to savings accounts may well not
In either case tell your ATM bank or credit card bank which countries you are going to so they don't block the transaction for security reasons
I also tell them now that these are the only countries i'm going to - this after reading that in Italy somehow they had readers of some type - crooks did to get you ATM number and PIN and then had charges coming in from Romania.
#4
Join Date: Mar 2003
Posts: 22,985
Likes: 0
Received 0 Likes
on
0 Posts
It depends on your provider. I pay no fee for the ATM and 1% conversion on the credit card, which is refunded by my provider as part of the general "appeal" of the card--1% refund on all purchases. That being the case, I can use credit card or ATM card as I wish.
#5
Join Date: May 2005
Posts: 19,881
Likes: 0
Received 0 Likes
on
0 Posts
<<< so the difference is in the ATM usuer fee - about $5 in my case each time you withdraw money >>>
Bank of America? If so do a search for "Barclays" on this forum where you'll find out how to avoid that $5 fee
Bank of America? If so do a search for "Barclays" on this forum where you'll find out how to avoid that $5 fee
#6
Join Date: Mar 2005
Posts: 11,983
Likes: 0
Received 0 Likes
on
0 Posts
for me this year was the first time ATM cards were better on the bottom line
previously for years credit cards were better, but now my cc issuer charges 3% the ATM card is cheaper. My credit union does not charge for foreign ATM usage - only the 1% levied by Visa.
previously for years credit cards were better, but now my cc issuer charges 3% the ATM card is cheaper. My credit union does not charge for foreign ATM usage - only the 1% levied by Visa.
#7
Join Date: May 2005
Posts: 19,881
Likes: 0
Received 0 Likes
on
0 Posts
<<< previously for years credit cards were better, but now my cc issuer charges 3% the ATM card is cheaper >>>
It means the CC company now shows the conversion fee as a separate item rather than including it in the exchange rate
It means the CC company now shows the conversion fee as a separate item rather than including it in the exchange rate
#8
Join Date: Mar 2005
Posts: 11,983
Likes: 0
Received 0 Likes
on
0 Posts
Yes, cc issuers now must show the 3% as a separate transaction.
I've tracked to the penny my conversion costs on about 10 previous trips over the last 4-5 years, and since about the last 2yrs credit union ATM without any forex fee is better by 2% over my cc's.
I've tracked to the penny my conversion costs on about 10 previous trips over the last 4-5 years, and since about the last 2yrs credit union ATM without any forex fee is better by 2% over my cc's.
#9
Join Date: May 2007
Posts: 49,521
Likes: 0
Received 0 Likes
on
0 Posts
If you use your Master Card to get cash from an ATM machine you are getting a cash advance - and the minute you make the transaction you will be accuring interest on the cash as a loan (anywhere from 18-24%) and the loan charges begin immediately.
If you have a bank card such as Bank of America (which I only use for travel purposes) it can be used as an ATM card with their "sister" banks such as Barcly's Bank, and many, many other banks worldwide without fees and charges.
If you have a bank card such as Bank of America (which I only use for travel purposes) it can be used as an ATM card with their "sister" banks such as Barcly's Bank, and many, many other banks worldwide without fees and charges.
Thread
Original Poster
Forum
Replies
Last Post
Rd
Africa & the Middle East
4
Aug 24th, 2007 06:46 AM