basic question about ATMs abroad
 

I just called my bank to find out about fees and conversion rates associated with using my bank card in Europe, and I was told that the bank doesn't determine the exchange rate. Apparently, so I was told, the amount withdrawn will appear in U.S. dollars on the screen and that's what is deducted from the account. Is this true? If so, how does one determine which machines provide the best rates?

Ron, I'm afraid most retail bank employees have little understanding of how a foreign ATM works. I've never seen one that either revealed the exchange rate or listed the equivalent amount in US$. And they likely never will. Imagine the wasted availability of a machine if tourists would cancel their transaction if they didn't like the rate. <BR> <BR>I don't think you have to worry about which ATM to use. One poster recommended using a *big bank's* ATM because you'd get a better rate. I'm almost certain that's not true. I believe the rate is going to be set by the network handling the transaction (i.e. Plus, Cirrus). Either way, whether it's 1 or 2 percent above the wholesale rate, it doesn't really matter much. <BR> <BR>Now when European banks start charging us to use their ATMs, then it may pay to shop around.

I used my Citibank ATM card in a number of location like London, Paris, even in small cities in Spain, where I could find a Citibank ATM machine. Every time I used my card, there would be a message on the screen telling you how much it would deduct from your account the US dollar amount, and it would ask you if you would want to proceed to withdraw the local currency. I am not sure if this is true on ATM machine from other banks, but this is very true in the Citibank ATM machine in the countries I visited.

Also, and this applies to both credit cards and ATM withdrawls. I was told that the amount taken out of your account, or withdrawn from your credit card is for the exchange rate on the day the transaction is actually processed! Not necessarily the day you take money out of the atm or charge your meal. <BR>Paperwork must be sent in and it may be quite a lengthy delay until you actually see the funds withdrawn or the charge applied. Just be aware of it.

Hmmm...never, ever, have I seen a message on an ATM screen in Europe telling me how much money in dollars is being deducted from my account. And I've hit literally hundreds of machines.

I guess it's particular to Citibank machines (thanks for the correction, JC). I guess I've just never run into one.

We have used ATMs (Cirrus) from England, Scotland, France and Germany and we have never seen the amount deducted in US currency or the exchange rate. <BR> <BR>When we were in Germany we used an ATM and, of course, the language came up in German. My husband and I stood there for a second not knowing what to do or what button to push. Then suddenly a screen popped up asking what language we like to use. What a relief to see the English button and then English on the screen. PHEW!!!

Ron, like others here (except for the person using Citibank ATMs), I've never seen the U.S. dollar amount on the screen. Maybe more ATMs will be doing this in future, but I don't know. <BR> <BR>As for exchange rates, my understanding is that the rate is usually close to what's called the "wholesale" rate, which is the rate used when banks swap money in multimillion-dollar deals, and it's better than what one would get by exchanging money "retail", directly at a bank branch for example. (Anyone please feel free to correct me if I'm wrong on that, but that's been my understanding.) <BR>

I'll agree with St.Cirq. I also have never seen an overseas ATM show the amount in US$. <BR>Ron, the obvious solution is to be aware of what the approximate exchange rate is in the country you are visiting. On my two trips to Italy in the past 18 months, every ATM I used gave me an option of several different amounts to withdraw and, knowing approximately how much each one was in US$, I would select the amount I wanted. <BR>As for charges, they really are minimal and ATMs is definitely the way to go.

I have never seen $$ show on a foreign ATM; are you sure it wasn't euros? <BR> <BR>The exchange rate changes are so minute that the only impact is on arbitrageurs, currency traders and international corporations who deal in multimillions, not $200 ATM withdrawals. <BR> <BR>Example: ff is worth .1363345 last night; today it's worth .1357865. If you withdrew 1500ff yesterday, you paid $204.50; if you withdrew it today, you paid $203.68. If you're trading 100MMff, NOW you got a difference. <BR> <BR>The exchange rate is neither determined by the ATM company, your bank nor Visa/Mastercard; it is determined by the international currency market and banks - one rate for all. Depending upon which day the charge hits your bank, the rate will be determined.

Something else to add to the mix. Last year my boyfriend was in Manchester and used his ATM, it took days for his account to show any withdrawals. And when he got home put a hold on his account because they had no idea if he took out all his money in Manchester. We changed banks. He is now in Europe and if I look up the account over Internet banking I can see his transcations instantly. So the long winded way of saying it all depends on your bank. <BR> <BR>I agree with Brian, unless the bank employee is a traveller and uses there ATM their information is very limited and alot of times wrong.

Does anyone know if there is a Citibank in Rome or Venice? S

I've used Citibank ATM's in Germany, and they do give transaction amounts in U.S. dollars if you are using a Citibank card. <BR> <BR>For Citibank locations in Europe: http://www.citibank.com/branches/EU/EU.html