All You Need to Know About Using an ATM Abroad

Withdrawing money from an ATM abroad isn’t always as simple as it looks. Foreign transaction fees, ATM surcharges, currency conversion costs, and poor exchange rates can all quietly eat into your funds if you’re not prepared. 

Plan your withdrawals before and during the trip, and you can avoid most of the unnecessary costs – this guide shows you how.

What Happens When You Use an ATM Abroad?

A foreign cash withdrawal works much like a domestic one, but with a few extra steps happening behind the scenes:

• Local ATM networks – the machine you’re using belongs to a local bank or independent operator, not your own bank.
  
• Card issuer authorisation – your card issuer checks and approves the withdrawal in real time, over the same card networks (Visa, Mastercard) used at home.
  
• Currency conversion – the amount withdrawn is converted from the local currency into your home currency, either by your card network or by the ATM operator, depending on what you select on screen.
  
• Account debiting process – the converted amount, plus any applicable fees, is debited from your account, though it can take a day or two to appear as a fully settled transaction

Understanding this sequence makes it much easier to see exactly where the costs come from and where you have some control over them.

ATM Fees Abroad: What Costs Should You Expect?

You’re likely to face up to four separate types of fees when withdrawing cash from an ATM in a foreign country.

Foreign ATM Withdrawal Fees

Most UK banks charge aforeign transaction fee for cash withdrawals abroad, typically around 2.5 – 3% of the amount withdrawn, often combined with a flat cash withdrawal fee of roughly £1.50 – £2.50 per transaction. 

High-street banks such as Lloyds and Barclays commonly apply fees in this range, while a growing number of UK current account providers waive them entirely, at least up to a monthly limit.

Currency Conversion Charges

On top of the withdrawal fee, your card issuer applies its own currency conversion charge – usually a margin of 1 – 3% above the mid-market exchange rate. 

This is separate from any fee shown on the ATM screen and won’t always be obvious until you check your statement.

ATM Operator Surcharges

Many ATMs, particularly independent machines not run by an established bank, add their own surcharge for foreign transaction fees abroad. 

That’s entirely separate from what your bank charges, often €3 – €5 or the local equivalent, disclosed on screen before you confirm the withdrawal.

Poor ATM Exchange Rates

Even where no explicit fee is shown, some ATMs apply a poor exchange rate baked into the transaction itself, usually as part of Dynamic Currency Conversion, covered in more detail below.

The best defence against all four is simple: check your bank’s fees and charges before you travel, so you know exactly what to expect and can plan your withdrawals accordingly.

Dynamic Currency Conversion: Should You Pay in Local Currency?

You’re at the ATM, withdrawing cash, when a screen appears asking whether you’d like to be charged in your home currency or the local currency. 

This is Dynamic Currency Conversion (DCC).

It may seem counterintuitive to go with the local currency, but research has shown that it offers much cheaper rates than in your home country.

Another aspect that is most likely to come into play is that you’re likely to face several types of fees when withdrawing cash from an ATM in a foreign country.

These fees are:

• An international or transaction ATM fee;
• A conversion charge;
• A surcharge;
• Poor ATM exchange rates.

The best thing to do in this case is to double-check your bank’s fees and charges prior to embarking on your trip, so that you can avoid and minimise some of the fees listed above.

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How to Choose the Right ATM Abroad

Where you withdraw matters just as much as which card you use.

Here’s what you need to know:

• Bank-operated ATMs – machines run by an established bank generally offer the fairest rates and the lowest risk of hidden charges.
  
• Airport ATMs – convenient, but among the worst for fees and exchange rates, precisely because they know travellers have little choice in the moment.
  
• Independent ATM operators – cashpoints not tied to a recognised bank, often found in convenience stores or tourist areas, tend to charge the highest surcharges.
  
• ATM location safety – well-lit, busy locations, ideally inside or attached to a bank branch, are both safer and more likely to be fairly priced.
  
• Using maps to find trusted bank ATMs – Google Maps, along with dedicated ATM locator tools and your card network’s own locator, can point you towards established banks’ ATMs at your destination, rather than the nearest unbranded machine.

The best thing to do is check Google Maps for these banks’ ATMs at the location where you are and use those instead.

How to Reduce ATM Fees When Travelling

A few habits go a long way towards keeping ATM fees abroad to a minimum.

Check bank fees before travelling. Know your provider’s foreign transaction fee, flat withdrawal fee, and daily withdrawal limit before you leave.

Withdraw larger amounts less often. Since many fees are charged per transaction, fewer, larger withdrawals usually cost less overall than several small ones

Also, where possible, avoid unnecessary balance enquiries. Some ATMs abroad charge a fee just for checking your balance, so use your banking app instead.

Partner bank networks, where available, can be very useful. Some UK banks participate in reciprocal networks like the Global ATM Alliance, which links Barclays with partner banks including Bank of America, BNP Paribas, Deutsche Bank, Scotiabank, and Westpac, waiving the ATM operator fee (though your bank’s own currency conversion charge can still apply).

Finally, avoid DCC. Always decline the home-currency option and pay in local currency instead

Which Card Should You Use Abroad?

The type of card you use abroad has a bigger impact on your overall costs than almost anything else on this list.

Here are a few details to consider:

• Debit cards – often the most cost-effective for cash withdrawals abroad, though credit card fees abroad and debit card fees abroad vary significantly by provider, so check both before you travel.
  
• Credit cards – foreign ATM withdrawals on a credit card are usually treated as a cash advance, triggering both a cash advance fee and interest that starts accruing immediately, making credit cards a poor choice for cash abroad.
  
• Travel cards and prepaid travel cards – designed specifically for spending and withdrawing abroad, often with little or no foreign transaction fee, though ATM caps and top-up rules vary by provider.
  
• Business cards – built for company spending abroad, often bundling competitive exchange rates with expense tracking, which matters if you’re travelling for work.
  
• Backup cards – always carry a second card from a different provider, in case your primary card is blocked, lost, or not accepted at a particular ATM.

It’s also worth setting up a separate account just for travel. 

This separate account should be different from your main current account and should help you stay within budget. It’s worth carrying a small amount of cash as a contingency in case a card fails or an ATM is unavailable.

ATM Safety Tips Abroad

Cost isn’t the only thing to watch for. 

A few basic precautions reduce the risk of fraud or theft when withdrawing cash abroad:

• Use ATMs in secure locations – ideally attached to a bank branch, well-lit, and in a busy area.
  
• Shield your PIN – cover the keypad with your hand or card as you enter it, every time.
  
• Check for card skimmers – look for anything unusual attached to the card slot or keypad before inserting your card.
  
• Avoid accepting help from strangers – politely decline offers of “assistance” at the machine, a common tactic used to distract or observe your PIN.
  
• Monitor transactions after withdrawals – check your banking app shortly after each withdrawal to confirm the amount matches what you expected.

These tips can help you protect yourself and minimise the risk of card theft or stolen data. 

What to Do If an ATM Abroad Keeps Your Card or Fails

If something goes wrong, the machine keeps your card, or the withdrawal fails, but the screen suggests otherwise, a calm, methodical response helps.

One thing you can do is contact the ATM operator. If there’s a branch attached to the machine, speak to staff immediately; they may be able to retrieve your card directly.

You can also contact your bank or card provider. Most UK banks offer 24/7 support lines for exactly this situation, reachable even while abroad. 

Another option is to freeze the card. Most banking apps let you freeze your card instantly, preventing any unauthorised use while you sort out the issue. 

Check whether funds were debited. A failed transaction can sometimes still show as a pending debit; check your app and query it with your bank if the amount doesn’t clear within a few days. 

Always take the ATM receipt if offered, and photograph the machine and screen if something looks wrong, since this evidence helps if you need to dispute a transaction later

Using a Business Card Abroad

For business owners and employees travelling for work, a dedicated business card changes the calculation considerably.

A business card keeps travel spending separate from personal accounts, simplifying expense claims and bookkeeping. 

On another note, withdrawing or spending directly from a business account abroad avoids the admin of using personal funds and claiming them back later.

There are also important exchange rate considerations. The same principles apply as with personal cards – look for competitive rates with minimal markup. 

The myPOS Business Card for International Use

A myPOS business card is designed with exactly this kind of travel in mind. 

It offers competitive exchange rates, helping you avoid losing out on funds during the conversion process, and gives you seamless access to your business’s free IBAN wherever you’re spending or withdrawing.

For business owners who travel regularly, this means:

• Using business funds abroad without routing purchases through a personal account first;
• Paying and withdrawing internationally, with the card usable at ATMs and card terminals across Europe and beyond;
• Managing travel expenses directly from your business account, with transactions visible in your myPOS app;
• Multi-currency business use, supported by the Platinum range of cards – Silver, Gold and Metal – usable at locations worldwide;
• Supporting business owners who travel for work, whether that’s a one-off trip or regular international travel as part of running the business.

For online or remote purchases where a physical card isn’t practical, a myPOS virtual card offers the same access to business funds without needing a physical card in hand. 

This is especially useful for booking flights, accommodation, or other travel expenses ahead of a trip.

Conclusion

Using an ATM abroad doesn’t have to come with unnecessary costs. 

Plan your withdrawals before you travel. Always decline Dynamic Currency Conversion, choose established bank ATMs over independent or airport machines, and pick the right card for the job. 

Keep an eye on your transactions as you go, and you can spend your trip enjoying it, rather than worrying about excessive ATM fees.

Frequently Asked Questions

Can I withdraw cash on my business debit card abroad?

Yes, most business debit cards, including the myPOS business card, work at ATMs abroad, subject to your account’s daily withdrawal limit and any foreign transaction fees.

How do I avoid dynamic currency conversion (DCC) at ATMs?

When prompted, always choose to be charged in the local currency, not your home currency. This lets your card network apply its own exchange rate instead of the ATM’s inflated DCC rate.

What’s the best way to find fee-free ATMs overseas?

Use your card provider’s ATM locator or partner network (like the Global ATM Alliance), Google Maps to find established bank branches, and check the on-screen fee disclosure before confirming any withdrawal.

How do I report a lost or stolen business card used abroad?

Freeze the card immediately via your banking app, then call your provider’s 24/7 support line to report it lost or stolen and request a replacement.

Is there a limit on how much cash I can carry back to the UK?

You must declare cash of £10,000 or more (or equivalent) when entering or leaving the UK from another country. There’s no legal limit on the amount, just a declaration requirement above that threshold.

What are contactless ATM options for business payments abroad?

Some ATMs support contactless withdrawals (tap your card or phone instead of inserting it), useful for quick, low-value cash-outs. Check your card’s contactless withdrawal limit before relying on it.