Bank ATM Cards

Lee, She indicated that the $2 was "their fee" for ATM withdrawals, but I knew that didn't cover the exchange as that's unavoidable in any case! She did specify that their fee didn't cover any charges that might be levied by the foreign ATM operator. I suppose I could "dig out" my statements from last year to get more precise details on the charges that I paid. I'm not really too concerned about a few dollars or whether the rate is 1% or 3%. My only alternative is to quit travelling, and that's NOT going to happen. Cheers!

Try your local credit unions. One of my credit union cards charges 1% and the other charges absolutely nothing - no per-use charge, either. Or Ally Bank online - they charge 1% with full refund of any out-of-network ATM charges.

Hi Mark. I second credit unions! If you don't want to completely switch, you could set up a checking account at one for travel use. I just switched to a credit union from US Bank for multiple reasons besides travel and my credit union charges a fee of $1 per foreign ATM transaction. (US Bank charges a 3% fee plus a $2 foreign ATM usage fee for each transaction.) I also have a Capital One credit card which does not charge any international fees. Some hotels in Europe charge a fee if you pay with a credit card but if you pay with cash, there's no fee. This is one advantage of using ATMs over credit cards.

"Is this the rate everyone is having to pay?" No, there are many banks that charge less than 3%. For a table of comparison, go here: http://www.flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

I've found that, for Germany, at least, the overnight places that charge the least don't take credit cards. So, if you are using your credit card, you are paying more. As for the rates, I have one bank, a major national one, that gives me two absolutely cost free ATM withdrawals per month. My other bank, a local Colorado bank, charges me 1.4% per $500 withdrawal, 1% exchange rate plus $2 out-of-system fee. The 1.4% bank charges me 1% for credit card usage. The free ATM bank charges 3% for CC usage.

Look into opening a checking account at First Republic Bank. There are branches in So. California. Credit unions are also another good alternative. A while ago, I saw a listing of these on Suze Orman's website. Good luck and have a great trip!

Mark, I've never really paid attention to the charges I pay for ATM withdrawals in Europe. I always figured if I can afford to travel to Europe, a few dollars in fees aren't going to be a "show stopper". However, your post prompted me to call my Credit Union so that I could find out what fees I pay. I was informed that it's a "flat rate" of $2.00 for each withdrawal, regardless of amount. You might check out the Credit Unions in your area.... Cheers!

Ken, you didn't ask the right question. The $2 is a fee for using the ATM, but there is an exchange rate envolved. Today the international rate is about $1.418/Eur. But they won't give you that rate. They pay the Network (Cirrus, Plus, et al) 1% to handle the transaction and exchange the currency, so you will probably get €1 for $1.432 (plus pay $2 per transaction).

Addressed many times here - check with Capital One. Their Hi-Yield MM Account has no charges from them for ATM use anywhere (make sure the ATM you use in Europe is owned by a bank so that it does not charge any fee). Last summer the exchange fee cost was under 1% on each transaction (I just checked one, about .0086%). Note that it takes them 6 business days to handle an electronic pull from your bank (unreasonable, don't know why), longer when the account is open under a month. Their daily limit is $600 US. I agree fully that if someone can afford a trip to Europe that the fees are inconsequential, else one should not be making that expenditure. But on the other hand - why should all this extra money be given to the banking industry just "because"?
By the way -Capital One offers a MasterCard that has NO Foreign transaction fee (along with 1% cash back on everything, 2% on gas and groceries.) PS -I do not work for Cap One!

Capitol One online banking checking account. Free, free debit card and no international fees. I got a card for my wife and one for me. We each had a $600 daily limit. Notified them that we were traveling. Deposited all our money for the trip to the account. Worked perfectly in France and Italy. Make sure you choose a 4 digit pin.

Also, some banks have reciprocal agreements with banks in other countries - with my Bank of America debit card, I can withdraw without a fee from Barclay's in the UK and DeutscheBank in Germany. Of course, now my daughter's in Italy and we're paying through the nose...i may have to look into the Cap One account that has been so highly recommended.

After checking rates we didn't use our Wachovia card (part of Wells Fargo and charges a whopping 3% + $5 per transaction) and opened a USAA account (flat 1% per transaction). There are some free options but overall USAA seemed to fit our needs best.

The best deal I found is to use a Bank of America debit card (withdraw from your checking account). I use an account I set up for the purpose--limited amount of money in it. Bank of America has reciprocal agreements with banks in many countries in Europe which do not charge a fee or a % on cash withdrawals. In England--Barclay's Bank and France - BNP Paribas. My sister set up an online account since her state has no Bank of Americas. If they give you a 6 digit pin, she found out that using the first 4 digits works in Europe!