Hello,
I'm curious if any other Canadian travelers have tips for minimizing bank fees while in Europe. Last time, I just took out decent chunks of cash whenever I could, at ATMs, using my debit card. I do not incur fees for using my debit card, except those that a particular ATM charges. But still ---- are there any other tips? If you're going to Europe for 2-3 months, and plan on spending $5-$7K, the auxiliary/additional fees can add up quickly.
Thanks,
Mike
I'm confused by your question. You say your debit card doesn't "incur fees" so what are you asking in trying to minimize fees? European banks do not charge to use their ATMs, if that is what you are wondering. And the exchange rate is always the interbank rate when using a bank ATM. On occasion, some ATMs are a private, non-bank machine which will charge fees or a higher exchange rate. Travelex is a common one in the UK.
Thanks, you've actually answered the question for me, for the most part. My bank insisted that European banks now charged transaction fees at their ATM. So my bank does not throw on a percentage or a fee to use my debit anywhere in the world, but I suspected/i was told by my bank that the bank of the atm, or any bank teller in Europe would charge me some fee, and that's what I wanted to minimize. But as you say, European banks don't do that, and that sounds familiar to me.
Too bad my stupidly expensive Visa doesn't treat me the same --- charging 2.5% for every transaction in Europe... that's absolutely insane.
As mentioned above, European banks do not charge for using their ATMs. However, some ATM networks do. In Canada, you might check out to see if your bank is a member of the Interac Association, which is a multi-bank ATM network founded by Royal Bank of Canada, CIBC, Scotiabank, Toronto-Dominion Bank, and Desjardins Group in 1984. Even in Canada, you may be subject to a "Network Transaction Fee" for using an ATM at a bank where your funds are not deposited. I suspect that European banks would be in that category as well. Your bank may say they don't charge network transaction fees but the ATM network they belong to may. You might also check with your bank to see if they charge a service fee. Some banks add a service fee on top of the network transaction fee.
There are a few truly free ATM cards out there. We have a Schwab Bank account with an ATM/Visa card. No fees on ATM withdrawls and, no fees on Visa transactions. The only limit on the Visa part of our card is how much we have in our checking account as this Visa feature takes money quickly from your account. It does not have a limit like a debit card has. Sounds strange but that's the way it works. All of our Schwab Visa charges are shown on our checking statement. We never receive any kind of Visa bill.
Here's a link to a great Flyerguide list of ATM fees. http://flyerguide.com/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange
We do recommend using ATMS for all your cash needs, and your previous experience seems to confirm this. Many banks do mark up their exchange rate by a certain percentage, as you are aware, but this is still a better rate than you'll get when exchanging cash or travelers checks.
Mike, I carry several Canadian ATM cards and try to wade through the fine print before each trip abroad. Details do vary from bank to bank, but in general, you already know my basic strategy: Go back to using cash. An ATM fee (which is imposed by your own bank, not the foreign operator) goes down on a percentage basis if you withdraw a substantial amount. So $5 on $300 is far cheaper than $5 on $30. Transactions in the US tend to require a lower charge, by the way.
Just like home, avoid so-called grey market ATMs in places such as pubs or supermarkets. They may add their own fees, and good luck getting any help if machine swallows your plastic.
Credit card purchases carry similar but not necessarily the same fees. Old-fashioned cash is the new-fangled way to go.
Only use a credit card at an ATM for dire emergency cash; it's considered a loan, at ferocious interest.
...Many banks do mark up their exchange rate by a certain percentage,
That is an incorrect statement. US banks (don't know about Canadian), credit cards, etc., are prohibited from marking up the exchange rate. A class action suit years ago requires full disclosure of all fees. The exchange rate you see on your statement will be the exchange rate that the bank received from the network (Plus, Cirrus, etc.) That exchange rate will be very closed, less than 1% over, of the interbank rate. After that the bank, credit card company, etc., is free to add any fees but the fees are fully disclosed.
...Many banks do mark up their exchange rate by a certain percentage, ......
That is an incorrect statement.
The more correct statement would be that many banks add a foreign transaction fee of (typically) between 1-3 percent of the withdrawl or debit. The interbank exchange rate is set by the network.
