lgnutah

I have been trying to figure out how to minimize loss (through fees, etc) when getting cash to use when I am in Turkey (or any foreign country). It seems there are multiple (potential) ways to lose--and my goal is to figure out how to minimize my loss in these areas:

1. ATM fee, at the foreign machine (unknown-though I believe some have said there is no fee?)
2. ATM fee, at my US bank (some banks-my credit union-charge $1.00, others charge nothing if you are using their bank machine, or a "sister" bank's machine)
3. Currency exchange rate (which varies, depending on where you get cash-at your hotel or even the bank, you will do less well). At the currency exchange businesses, I have been told, you will do better.
4. Cash advance fee (when using a credit card to get cash, interest charges at your credit card rate begin on the day you withdraw the money-there is no 25 day "grace" period)
5. Foreign transaction fee (up to 3%)-one needs to check with one's bank, credit union, credit card company, or ATM card policy.

People on this forum said, use Capital One credit card, because they have no foreign transaction fee....so I applied for this card (and the representative assured me there was no transfer fee, or foreign transaction fee). Great! Then, I got the Fee Disclosure statement, and see that if this credit card is used to obtain cash, there is a "fee of 3% of the amount of the cash advance, BUT NOT LESS THAN $10" (and then on top of this, you pay the interest beginning the day you withdraw the money). Ummmm, does anyone think this is a good deal?

My credit union says there is no foreign transaction fee, but you will pay them $1.00 for each withdrawal at an ATM (money to be withdrawn from my CU savings account), so if you are withdrawing $100, this is a 1% fee, so one needs to withdraw the maximum amount of money each time to reduce the fee%.

Banks don't charge an ATM fee, if you use their bank's ATM in the foreign country...but how likely is it that your bank has an ATM where you are? And, some banks (Bank of America, for example) charge the foreign transaction fee (BOA's is 3%)

As one adds this all up, one's "buying power" diminishes greatly, doesn't it?

scotlib

Hi lgnutah,

I do not use the Cap One credit card for cash! I use it for purchases.

For cash I do have a Cap One direct banking money market account with an ATM card .. no fee for withdrawals in the UK .. and I assume other int'l destinations .. experienced users speak up?

My local bank charges a fee if I uses it locally, so it is saved for trips!

My local bank lists a fee for using it at "foreign" ATM machines, but two trips to the UK have resulted in no fee withdrawals from bank ATMs (I only used bank ATMs), so I do not know why, but just enjoy that!

Cheers.

scotlib

wish for editing or better had preview ..

the second bit about my local bank refers to using the ATM card for my checking account with my local bank .. sorry for so much "clear as mud"

JillDavis

I was going through the same thing a few weeks ago because I didn't want to pay the foreign transaction fees either. However, I didn't want to go the Capital One route because I didn't want to open a new credit card. So, I found out from Fodorites about this amazing Charles Schwab CHECKING account I can open. (thanks Nikki!) No transaction fees and no ATM fees. Sounds too good to be true, but it's not. Read this long tread. The information on the Schwab account is towards the bottom -

http://www.fodors.com/community/europe/cash-vs-atm.cfm

I never do cash advances from a credit card. This is not the way to get cash. Either withdraw from the ATM or pay with credit card.

lgnutah

Good ideas, I will follow up on them, thanks Scotlib and JillDavis. The info on the Charles Schwab checking account makes me wonder if our companies, Ameritrade or Fidelity-which we have investment and checking accounts with-have similar policies. I will check this out.

Luisah

<<My credit union says there is no foreign transaction fee, but you will pay them $1.00 for each withdrawal at an ATM (money to be withdrawn from my CU savings account), so if you are withdrawing $100, this is a 1% fee, so one needs to withdraw the maximum amount of money each time to reduce the fee%.>>

My credit union charges $1.50 per withdrawal regardless of the amount; it's $1.50 whether I withdraw $100 or $400.

Your credit union has told you they charge $1.00 per withdrawal and no foreign transaction fee. You can only beat that if you have a card with no fees at all so then you might save $4 - $5 not a big deal.

You're talking about $1.00 fees so I wouldn't worry about having to withdraw once or twice more than you planned.

ATMs are plentiful and you'll have no problem finding one that will accept your credit union card. I've used mine with no problem in numerous countries.

Check again with your credit union to get it straight.

Ask if the withdrawal comes from your SAVINGS (as you wrote)account because it is usually taken from the checking account so you could have a bad surprise if you don't get your money and that's happened. Some banks withdraw only from the checking account.

Also find out what the maximum per day limit is and be sure to give the credit union the dates you'll be using the card shortly before you leave.

Forget about cash advance, it's expensive and also forget about currency exchange -- using the ATM is the least costly and $1.00 per withdrawal is a negligible expense, hardly a loss.

lgnutah

Thanks, Luisah, I will verify whether I need a checking acct at my CU. It seems to me the $1.00 deal at the CU ATM is the way to go for cash, then use my credit card for all else.

J62

I think you have the lowdown on fees pretty good. What you haven't covered is exchange rates.

In my experience the exchange rate when using an ATM or a credit card outside of the US is essentially the same as electronic transactions use something close to the interbank rate. The exchange rate offered to exchange cash us usually much worse. Sometimes 5% worse, sometimes even more.

Many people fall into the trap of an advertised "no fee", either at a cash exchange booth or even at their bank at home, but ignore the difference in exchange rate.

I agree with your net assessment to use CU ATM/debit card to get cash, and credit card for all else.

I typically bring $200-300 USD with me when I travel knowing that when all else fails I can exchange $ into local currency. In my past 10 trips or so to Europe I've always returned home with the same $200-300 still in my pocket.

Luisah

<<I've always returned home with the same $200-300 still in my pocket.>>

I've done that too. I like to have some emergency cash in case of an ATM problem, but it's never happened.

Ignatuh,Even if someone at your credit union says they will take the money from your savings account, I'd move it into your checking account before you leave just to be sure. I've been misled by live people at BOA and heard of a woman who was told the money would come from her savings but she couldn't withdraw any when she tried. I don't recall if it was someone on Fodor's or if a friend told me.

I start saving a few months before the trip and then just transfer money into my checking account before I leave. I put it back in the savings account when I return.

I think you'll enjoy Istanbul once you get there. You're wise to ask questions now instead of a week or two before you leave.