An excerpt from an article in the Wall St Journal today:

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Bank of America Corp. plans in November to up the fee it charges customers to use most automated teller machines abroad by more than 50% to $5, from $3. Bank of America is one of the largest banks in the U.S. with the biggest network of ATMs in the country.

In June, Citibank, a unit of Citigroup Inc., raised its withdrawal fee at non-Citibank ATMs to $1.50 from $1 for some accounts, affecting both transactions here and abroad.

Many banks already have high rates for ATM withdrawals abroad, taking into account the additional currency-exchange fees. J.P. Morgan Chase & Co., for example, charges customers who take money out in foreign countries $3 plus an additional 2% of the withdrawal to cover conversion costs.

At U.S. Bancorp, foreign withdrawals cost $1.50 plus a 3% exchange fee.

Wachovia Corp. charges $2 to withdraw money abroad, while Wells Fargo & Co. charges as much as $3 outside the U.S.

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The article also notes that Bank of America will not charge the fee if the withdrawal is from banks in its global network, but you need to find out ahead of time where those banks are, Also CitiBank waives the fee for customers with more than $6000 (but it doesn't say what happens if your withdrawals while you're traveling bring your balance below that amount).

One bank that doesn't charge such fees (at least not yet) is Commerce Bank. Also, the article suggests getting cash back from a debit card transaction as a way to avoid the ATM fees.

Another attempt by the banking industry to milk the ATM cash cow. I suppose it comes with the usual BS "rationale" about increasing costs, etc., etc,

I have an account thru Met Life bank and they actually refund any fees charges up to a certain amount. I think its up to $15 a month.

I think that the banks are doing this because the ATM has become a way of life and people no longer convert currency before they go abroad. Its a shame.

I have a Certificate of Deposit with Citibank and in exchange they don't charge me any service fees for my US savings or checking accounts, including foreign and ATM charges (which is good cause I live in Swizterland). The CD earns a little interest, I can get to the funds quickly if I need them in an emergency, and I have no bank charges, it's a good deal for me. Ask if your bank will do the same.

This small shareholder thinks it is an excellent decision by Bank of America.

This small customer is happy that he finally left BOA last year.

That, Clifton, is why the free enterprise system works - we are both satisfied albiet for different reasons.

I was a dedicated B of A customer when I lived in California. Now they have appeared in NY/NJ as they take over Fleet bank.

Frankly I moved over to Washington Mutual. They give better interest rates...

BTW, in case you didn't know, Washington Mutual never charges you to use their ATM's if you are from another bank.

I can see a bank (not your own) charging you to use their ATM since they have to do extra work becasue of it (fill it with money, maintain it etc) but it doens't cose YOUR own bank anything for you to use another persons bank!

I pay, on average, GBP 10.00 (that's $18) for an ATM withdrawal on the continent. I have accounts at two of the biggest banks in the UK and both charge about the same.

walkinaround, OUCH!
I pay no fees at all for ATM withdrawals outside the US as long as they are Star or Cirrus system. Have usually found the exchange rates to be excellent. My bank is a regional one, and we have substantial funds there.

j, I can't argue with that. I agree now as I agreed with the service recovery rep when she said the same.

I was speaking to Bank of America customer service just yesterday, inquiring about foreign ATM fees.

They claimed $3 per transaction (true) and that there is Zero % markup or added margin to the interbank exchange rate.

>>> Can anyone vouch for the 0% adder to the exchange rate?

The upcoming $5 per withdrawal fee is already such an insult.

For BofA Visa credit card purchases, they claim a 3% added fee to the interbank exchange rate, and No additional "per transaction" fee. Supposedly 1% goes to Visa and 2% to BofA (or vice versa).

I don't always have much confidence in the accuracy of any customer service's verbal statements. It's probably why they never do it in writing or list it in their web site, it leaves too much of a paper trail. On the phone it's just your word against their (possibly wrong) word.

The basic problem with the article is it doesn't make a lot of sense. My bank is Bank of America and I withdrew money from ATM's about 20 times this summer in Europe. Most of them were their global network banks and there was no charge. After that I am allowed two free ATM withdrawals per month from any bank anywhere without charge. Then I had a total of two additional ones that cost exactly $1.50 each. So what's this thing about the current charge of $3? They've never ever charged me $3.

But by the way, I was also told that now Visa services is handling more and more ATM accounts in Europe for foreign exchange. When they do they now add 1% hidden in the exchange rate, just as they do with credit card transactions.

Weird. Tom, I swear your post didn't appear on my screen when I posted, although I see it is timed two hours ago! In any case, maybe I've answered your question? One of the people who told me about the extra 1% charge on all their ATM withdrawals was the manager of a Deutsch Bank in Rome. He said their bank is forbidden by law to make any charges, but since all the actual transactions are signed over to VISA services, that's where the 1% gets added.

Patrick--BofA has always charged me $3 for withdrawal outside the U.S. (except with affiliates ) and $1.50 for a non BofA bank in the US. You must have a high deposit with them to get other services.

Patrick...

The two major shared teller networks for years have been and are Plus and Cirrus. Plus is a wholly owned part of visa while cirrus is a wholly owned part of MC. To the best of my knowledge, they have always added the 1% above interbank fee to all ATM transactions.

Now also, for years and I believe it is still so, the rules of these shared teller networks prohibit banks from adding additional fees for using their machines. For that reason, I have never paid a fee to a European bank for an ATM withdrawal. And since I have a citibank account with a high balance, I get unlimited free ATM withdrawals on their end so I don't pay fees. The exchange rate seems to be 1% above interbank.

Several have told me that while this is true at bank ATM's, private ATM's are free to charge fees for their use. I assume they are telling me the truth so I am just passing along the info.

Also many Canadians have told me they are charged the additional fee by many Texas banks; all I can say is that perhaps the transaction is not routed through Cirrus or Plus. I do know that on the Citibank machines in NY, there is a notice that Citibank will impose a fee of $1 on all US issued cash withdrawls implying non US cash withdrawals are not subject to this fee.

YIKES!!!!! You guys....

1. Take larger amounts of money from ATM's so the fee impact is less.

2. Go back to using travelers checks

3. Use the barter system instead. Trade a lipstick for a dessert at a restaurant.

4. You are spending thousands of dollars going to Europe. Are you going to fret over an ATM fee?

Speaking about the basic ATM withdrawal charges, I can't get too excited, upset or concerned about a charge of two or so dollars for a withdrawal. Hell, I'm probably spending a few thousand dollars on the trip, so why bother changing banks because mine might charge me a total of maybe a meagre $10 or $20 for a few withdrawals.