What you need to know about using an ATM abroad
Tips / 24.08.2020
Your bags are packed and you’ve been looking forward to your trip for a long time. You’ve just landed.
While we know how hard it is to travel during a pandemic, we also know that it can be hard using an ATM as well.
If you’re wondering: “should I withdraw some cash at the airport’s ATM?”, check out this blog post to help guide you on the issue of ATM fees and exchange rates when withdrawing cash at ATMs abroad.
Cash withdrawals and exchange rates – the issue of Dynamic Currency Conversion
You’re in a foreign country, standing in front of the ATM trying to withdraw cash when a screen appears asking if you’d like to withdraw the funds by using your home country’s exchange rate, or be charged at the local currency.
This is known as Dynamic Currency Conversion.
It may seem counterintuitive to go with the local currency, but research has shown that it offers much cheaper rates than 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.
Choose the right ATM
Another factor to keep in mind is where you’re withdrawing.
ATMs at airports and independent ATMs that are not operated by an established banking institution are likely to charge you much higher rates, fees and charges.
So, avoid these altogether as much as you can if you want to save on excessive fees.
The best thing to do is check Google Maps for these banks’ ATMs at the location where you are and use those instead.
Select the right card for your trip
The next issue to consider is the type of bank card you’ll be using when travelling abroad.
There are many banks and financial institutions which offer attractive exchange rates and ATM fees, while some others can be rather high indeed.
That’s why you need to check this fact with your bank prior to your travels.
It’s also a good idea to create a separate bank account for travelling; one that’s different to your savings or checking account.
This move will ensure you stay within budget.
But a contingency plan is always worthwhile and you should consider bringing some cash with you just in case.
Take advantage of your myPOS business card
Your myPOS business card is your key to travelling across Europe and abroad!
Offering extremely attractive exchange rates, you won’t lose out on valuable funds during the exchange process.
What’s more is that your myPOS business card allows you to use your funds in your free IBAN seamlessly.
And the best part is our brand-new Platinum range of cards – Silver, Gold and Metal – which you can use at multiple locations around the world!
Staying smart during your trip abroad!
The next time you’re at an ATM at an overseas location, think twice and be prepared for the likely costs and charges you’ll face.
Once you’re aware of these from the outset, you can take the right steps to arm yourself with the right card for your trip, and make wiser budgeting decisions.
In this blog post, we hope we’ve provided you with enough information to make your next trip abroad as pleasant as possible without worrying about excessive ATM fees.
Disclaimer: Please be aware that the contents of this article and the myPOS Blog, in general, should not be interpreted as legal, monetary, tax, or any other kind of professional advice. You should always seek to consult with a professional before taking action, since the particulars of your situation may materially differ from other cases.