Tuesday, April 24, 2012

ATM Exchange rate....if this is not too personal

If you are newly returned from Paris (any city/country using the Euro) do you mind stating what exchange rate you received from ATM machinge (US dollar to Euro). I apologize if this question is too personal to ask.



I%26#39;ve been keeping watch on the prime exchange rate at xe.com and was wondering how this compares with the exchange rate at ATM machines.....Many thanks!




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Whatever exchange rate you get at the ATM, they usually tack on an additional 3% fee, even if you use a credit card issued by the bank where you are withdrawing the money from.





For instance, when I was in Paris and withdrew cash from a Citibank ATM with my Citibank ATM card, they still hit me with a 3% surcharge.




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ATM withdrawals are at the bank exchange rate, or so close you can%26#39;t discern a difference. Where the additional costs come in:



- your bank charges a fee for using an ATM %26#39;out of network%26#39;



-Visa International adds 1% to convert back to US$



-your bank adds 1-2% on top of that just because they can





That was for debit cards.





If you use a Credit card, you will also incur a cash advance fee in addition to the above. It isn%26#39;t a good idea to rely on a Credit card for ATM withdrawals; better for purchases.





The only card issuer I know of that does not pass on any %26#39;foreign currency conversion fees%26#39; is Capital One. There may be some brokerage firms that provide a credit card with no foreign currency fees. There are banks that won%26#39;t charge you for the ATM usage - I use a Compass Bank visa debit card - no ATM charges ever (there is that 1% Visa Int%26#39;l foreign curr fee, though).




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Question? But if I use the Bank of America Debit Card at a BNP ATM, there are no fees correct? Or will I still get assessed some type of fee from Visa?




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First...you need to distinguish between a conventional VISA or MasterCard %26#39;..CREDIT..%26#39; card...and...simply a VISA or MasterCard %26#39;..branded..%26#39; ..DEBIT..%26#39; card. These are two different financial creatures.





Either credit and debit cards provides you with the avearge daily inter-bank foreign exchange conversion rate for foreign currency transactions...whether debit ot credit. Both will tack on a 1% %26#39;..network useage fee..%26#39; (CIRRUS, PLUS, etc).





But...there is a difference in any additional foreign transaction fees or useage fees that arise after this. In the case of conventional %26#39;..credit..%26#39; card transactions and additional fee of 2%-to-3% may be charged by the individual %26#39;..affinity..%26#39; credit card card issuer (i.e. Citibank, American Airlines, Daughters of the Confederacy, Boy Scouts of America, et al.) on the amount of the charge. In the case of %26#39;..debit..%26#39; transactions--ATM withdrawals as an example--the issuing bank (i.e. Chase Manhattan Bank, 1st Nat%26#39;l. Bank of Podunk, Olde Home Towne Bank %26amp; Trust, Hip %26amp; Trendy Bank, et al). may (most likely will) impose a flat, fixed-dollar amount (anywhere from $2-to$5 per transaction) %26#39;..foreign ATM useage fee..%26#39; to the individual transaction, regardless of the amount of the transaction. As an example if the fee is $3 per transaction, it will be the same amount for a 40 € ATM withdrawal as it will for a 400€ withdrawal.





If your debit account is with BANK of AMERICA....AND...you use a BNP-Paribas ATM machine for your transaction, B-o-A will not charge you its usual outside, foreign bank ATM fee. But this %26#39;..no fee..%26#39; policy applies ONLY to BNP-Paribas (and other Star Alliance banking partners elsewhere) ATM%26#39;s.




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Merci




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What I want to know is: does BoA apply its customary, outrageous 3% foreign transaction fee (after the 1% incorporated into the exchange rate by Visa) on ATM withdrawals at BNP, Barclays, CCB, and the other partners?





I used China Construction Bank (BoA partner) ATMs in June, and I did not see this fee in my Bank of America checking records. I am not convinced, however, that it was not hidden in the exchange rate because no rate was given to me by the ATMs or on my statements/ online account. I am going to be in London for 9 months, and I want to know whether I should use Barclays ATMs.





Thanks.




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