nibblette

Just returned from Europe where I used my ATM and CC. Did a head to head comparison of exchange rates. Looking at exchange rates for the corresponding days on official sites, I noticed my no-fee ATM apparently tacked on an upcharge of 1.5 to 5% (yes 5%!). CC was almost bang-on (really was no fee!).

I have poured over each of my bank's fine print inserts and never saw anything about new charges. Because they are so variable, it doesn't look systematic.
Does anyone know if the VISA/MC atm networks have increased their charges? Or any other explanation to explain the difference in ATM exchange rates?

TuckH

I posted the following on a recent thread:---

For our cash withdrawals during our recent trip to Italy, we used only bank ATM's using a Chase (Debit) Visa/MasterCard, drawing against our Chase checking account.

Upon returning home and seeing our Chase Statement, I was surprised to see a 3.5% charge tacked on in addition to the INT'L CIRRUS ATM fee of $3.

I questioned Chase about this and they said that it always levied this charge but in the past (I had checked my last year's records), it was buried into the exchange rate - there had been customer complaints about this practice - but recently they've made it a separate line item.

They say that 2% goes to the local bank (in this one case it was Banca Chianciano Terme in San Quirico) and 1.5% goes to Chase. Thus each €500/$623 withdrawal cost us about $25.

This was unexpected...

platzman

They say 2% goes to the local bank, eh?
Cirrus has an international fee of $3?
Thats a new one for me.

Something smells around here.

nonnafelice

Our checking account is with TD Bank North. We used our ATM card recently in Italy, and there were no percentage charges noted on our statement for currency conversion. When I did the math, the rate was around $1.20 - $1.21 per euro, which was about right, I think. The only charge was $1.75 per ATM transaction. We never even used to have to pay this service charge before our nice local bank got bought out by TD Bank North. Just another example of how mergers always end up costing the customer!

ira

Hi nib,

I'd start by complaining to my bank.

Many US banks are adding fees (for which they provide no service) to ATM and CC international transactions.

Find a bank that doesn't do this.

TuckH

I'm topping this because I'm curious to know what others have experienced with regard to ATM bank charges.

Please add to this thread. Thanks!

TexasAggie

We switched to a local credit union from Wells Fargo about 15 months ago. No withdrawal fees on the new ATM card (Wells Fargo was $2 to $3) and the exchange rate was always dead on.

Travelnut

We used our debit card from Compass Bank (Florida) for ATM withdrawals and a few purchases. We incurred -no- ATM fees and the exchange was an add'l 1% on the withdrawals and 2% on purchases.

SusanP

Last month, I used an ATM card with TD Waterhouse to get cash. No charges of any kind. I also have one from Key Bank, they charge a $2 out-of-network fee but no other surcharge. For credit card purchases, my Capital One card doesn't charge anything, either.

mikemo

I used my USAA ATM for cash and made two USAA V CC charges on 12 Oct here in central MX: No fees, but the conversion was $10.69/USD on the ATM and $10.81 on the two CC purchases posted 12 Oct. That's the largest "spread" I remember.
M

janisj

My bank (a small-ish local N. Calif bank group) charges $1.50 w/ a 1% mark up. I don't have a checking acct w/ my credit union any more - but when I did it charged $1 + 1%, with 5 free withdrawals a month.

Christina

I don't have any ATM charges, but I suspect you are calculating your exchange rate incorrectly. Regardless of what your banks' fees are, they should not vary from 1.5 to 5 pct at random. It just doesn't work that way.

I suspect you could have been using an exchange rate for comparison that was on a different date than the date your bank make the exchange conversion.

In any case, I'd suggest you ask your bank to explain it -- give them two different dates for the rates you notice (1.5 vs 5) and have them tell you the rate and date the exchange was made so you can understand their method. At least, have them explain the 5 pct one.

jeff49

Just returned from Scotland and got the following exchange rates:

ATM cash withdrawals (from checking account at Credit Union)
1GBP for $1.7558 on 04 October (plus $.75 ATM usage fee)
1GBP for $1.7612 on 05 October (plus $.75 ATM usage fee)
1GBP for $1.7769 on 10 October (plus $.75 ATM usage fee)
1GBP for $1.7618 on 11 October (plus $.75 ATM usage fee)
1GBP for $1.7661 on 17 October (plus $.75 ATM usage fee)

Credit Union Visa credit card charges
1GBP for $1.778791870 on 04 Oct (Interbank rate 1.75560)
1GBP for $1.779897626 on 05 Oct (Interbank rate 1.76050)
1GBP for $1.779897626 on 06 Oct (Interbank rate 1.76200)
1GBP for $1.779415501 on 07 Oct (Interbank rate 1.77890)
1GBP for $1.779300699 on 08 Oct (Interbank rate 1.76100)
1GBP for $1.779468599 on 09 Oct (Interbank rate 1.76100)

In looking at the interbank rates on these days, I felt that I got
a pretty good deal. Another reason to deal with a credit union
if you have access to one.

DeborahAnn

I called our bank, Bank of America, to ask what the fee is for out of area ATM's and was told $5.00 per transaction. EXTORTION If I want to avoid this charge in Italy I have to look for a Deutschbank as part of their Global ATM alliance. I have another debit card, Chevy Chase, with a charge of $2.00 per transaction. Deborah

TuckH

I appreciate all these replies (and offer an apology to nibblette for intruding on this thread). I'm now going to do battle with my bank.

Deborah, I'd gladly accept your BofA $5 extortion - I've had to pay $21.96 for my €500/$623 Italy withdrawal. I made four such transactions without prior knowledge of this policy. Here's their e-mail explanation -

>>>>The service charge you are inquiring about is the 3.5% conversion assessment added to the currency conversion rate in effect between MasterCard and Chase to convert international Chase Banking Card withdrawals and transactions to U.S. dollars. Previously, the 3.5% service charge was included in the total amount of the international Chase Banking Card withdrawals and purchases. It is now being listed separately on your statements. We apologize for any concern or confusion this may have caused you.<<<<

Andrew

Why not dump Bank of America and the other banks and go for a credit union? Unless you absolutely cannot join a credit union - most people can - I think you'd be nuts not to join one. Everything is cheaper, customer service is generally better.

Andrew

Ann1

I use Chase Bank and Wachovia. Upon returning from my last trip I notice the exorbitant fees from Chase. I did the math and Wachovia charged me "0" for using the ATM's in Italy. My Chase Bank representative told me the charges were hidden for my Wachovia withdrawals and that Chase presents them separate. I told her that my withdrawals were the exact exchange rate on both Chase and Wachovia. Then Chase charged me the extra 3% on top. No matter how you look at it, Chase was charging me 3% more. I will never use Chase overseas again.

TuckH

Thanks Ann1 - anyone else?

LarryJ

To TuckH

I just returned Sunday from a month in France. I draw on my Bank One checking account when I need cash and am always charged $1.50 per transaction regardless of amount. This has been the case for many years. Bank One is a subsidiary of Chase Bank. The card I use is a Visa debit card linked to my checking of course.

Larry J

TuckH

Follow up:

Armed with the helpful info I received here, I did as Ira suggested >>I'd start by complaining to my bank<< and I was successful in getting the charges rescinded.

That's the good news. The bad news is that I'll have to make other arrangements for next year's trip because I could get JPMorganChase to change its policies LOL.