ATM Fees: Are they higher at Airports/ Rail Stations?

The exchange rate charged by Bank owned and operated ATMs is controlled by the network (Visa, MasterCard, American Express) and is not able to be set by the ATM itself -- unless you choose the option to be charged in your home currency then all bets are off on what the rate will be. So, just withdraw the local currency and if offered the option to be charged in your home currency (known as Dynamic Currency Conversion) just say no.

Some ATMs do charge fees in Europe, but that is still the minority. If you attempt to use an ATM and it says there will be a fee, cancel and choose another machine. Most likely you will be able to find an ATM without a fee charged at the machine in most of Europe.

What you really need to watch out for are ATMs run by currency exchange booths like Travelex. Many of these do look and act like a real Bank ATM but have all sorts of gotcha on fees and exchange rates.

The ATM owner does not set the exchange rate (unless you get succoured into the dreaded "DCC"). They charge the card company (Visa, Mastercard) the amount you got out (€200, for example). The card company then converts this to the currency of your account at their corporate rate, and charges that to your bank. You bank may add a fee for a foreign transaction. It doesn't matter which machine you use.

Except:

• Some ATM's charge fees, but then they charge fees for everyone, including locals. Just go to a different machine.
• If the machine asks "do you want to pay in your own currency" (or something similar). The answer is no. If you answer yes you are giving them the right to convert at whatever rate they want, instead of the card company's rate. And, your bank will still charge you the foreign transaction fee.

The places where I most likely paid extra fees were not high-traffic airports and rail stations (where banks would be happy to place a machine) but lower-traffic places like a convenience store with an off-brand ATM inside.

I would agree with Laura, machines with fees I have seen tend to be in areas where banks would not serve (Bars, shops in tourist areas, etc.) Exchange rates are generally not an issue, except as someone mentioned where Dynamic Currency Conversion (DCC) comes into play. But DCC is always presented as an option and always can be declined (at least in my experience).

The better question to be concerned with is what your bank charges. If you bank with a good credit union, you have no "out of network" fees and no "Foreign Transaction fees"; at some banks these can amount to $5 per transaction plus 3%.

There is an easier way to do this. Instead of worrying about which ATM, you should be think about which Debit/ATM card. There are several out there that do not charge ATM fees worldwide. Nor do they charge foreign transaction fees. The time to save money is before your trip when you sign up for a no fee card.

What you really need to watch out for are ATMs run by currency exchange booths like Travelex.

I think that's the key thing to watch out for, besides DCC. I have a no-fee US debit card, so I never pay attention to what bank ATM I use in France. I've never run across one that has any fee; I just make sure I use an ATM from a "real" bank.

robinsegg, not all ATMs, home or abroad, are owned by banks. There are many private companies that operate ATMs, and they have to make money somehow, for providing you this service,

not all ATMs, home or abroad, are owned by banks. There are many private companies that operate ATMs, and they have to make money somehow, for providing you this service,

Agreed. They just won't make it from me.

I always keep track of my ATM transactions and calculate the exchange rate I paid. When I come home I compare it to the Interbank rate shown on Oanda, and I've always found it to be close to the Interbank rate. Note, the banks always leave themselves the option of taking any rate within a certain time period, the time they choose might not give the same rate as Oanda, but it's close. Then they add the exchange rate discount that they take, anywhere from 0% to 3% and an out-of-network fee, up to $5. I've never used a non-bank ATM. Even at the bank ATM in the baggage room at MUC, I've only paid the Interbank rate.

I have heard that at some airports, the ATM concession is run by private business (I believe it is Travelex at LHR) and they can charge a poorer (for you) rate. I've seen some Travelex exchange counters at airports in this country, and they charge anywhere from 10% to 14% over the Interbank rate at the same time.

The gotcha are not bank ATMs at busy places, but ATMs branded after bureaus of exchange and the like, such at Travelex. These will charge a fee for withdraw - any withdraw - on top of whatever network fee is there.

I am not one to promote Travelex, but I can say that while they have the concession at LHR for ATMs, they do not charge a fee for use or offer an exchange rate different than a bank ATM. I have used their ATMs in LHR on several trips with no issues. In fact, I believe on my last trip they did not even offer to do DCC, just processed the transactions. What you do need to be aware of, and this is where many get confused, is Travelex does have some machines (They are labeled and look completely different) for automated currency exchange...there you will be charged a fee and a different exchange rate, but you will know that you are not using an ATM.

I guess I'm the opposite. I find the biggest gotcha is using a Travelex (or other exchange machine) that is now designed to look like an ATM thinking it's the same as a bank. Unless things have changed drastically, they don't use a competitive exchange rate. I only use ATM's that have a bank (banco, banc) name on them.

Over half the ATMs in the UK are not operated by banks. In high footfall areas they can easily make their money from the interbank fee they get through the network and don't need to charge directly for the withdrawal. That is also the case for those in many high street shops as well.

Just don't withdraw currency that is not of the country you are in. There are a few exceptions to this rule actually, but unless you know what they are don't risk it.