I see the currency markets at about $1.12 per euro today what will the bank charge me excluding transaction fees, etc.??
Depending on your financial institution and the ATM owner. Some charge foreign transaction fees 1 to 3% being common. Some 0%.
A Euro will cost one Euro at an ATM (Cash machine) in a country where the use Euros.
The question is what your bank (or credit card issuer) will charge you for that Euro; they will be charged 1 Euro by the company owning the machine, what they charge you is between you and your card issuing company.
First, never use a credit card in a cash machine (ATM), neither in your home country nor in Europe. that will count as a "cash advance" and they will charge you interest immediately, not from when they send you the bill.
Instead use your normal bank debit card to withdraw the money, same as you would at home.
Your bank (or your card company) will charge you the following:
- The cost of the amount you got out, converted into your currency.
- Plus, possibly a percentage, depending on your banks charge rates for a foreign transaction, typically 3%, but it could be 0% or more than 3%.
- Plus, a flat rate charge for using another company's machine. That could be zero or more. Totally up to your bank.
You need to check with your bank and ask them what they charge.
Finally , if the machine offers you the "convenience" of charging an amount in your own currency, say no. That would mean both the company owning the machine AND your bank would take a cut.
The title font was so big I missed the part about "credit card" and responded for a debit ATM card.
A credit card ATM transaction is a cash advance and in addition to any foreign transaction fees, you may be subjected a cash advance transaction fee. AND interest often with no grace period. That is interest accumulate from the day of withdrawal and apply to balances from credit charge purchases.
Be happy you are not using Canadian dollars to buy a Euro. Today's rate is around $1.48CDN plus the Travelex fee. Ouch. And $2.03CDN per British pound. A couple weeks ago I bought £1000 for $2100CDN for an upcoming trip from a local bank. That's just the cost of travelling these days.
For a DEBIT card transaction, the bank will charge you $1.12 per Euro if that is the rate that day plus whatever fees they charge for ATM withdrawals, foreign exchange markup, and so on.
The reason the Euro is charged to you at that rate is because Visa and MasterCard (the most common DEBIT card brands) convert the Euros to your home currency before the bank ever sees the transaction (and adds in a 1% fee of their own after the fact). So if your bank is getting charged $1.12 for the Euros you get, that is what they are required to charge you.
As others have said and listed the reason for, never use a CREDIT card to get money from an ATM, always use a DEBIT card (except in the case of extreme emergency).
Another basic: The rates published for currency markets are not available to humble customers. They are derived from multi-million movements among giant institutions. Almost any moneychanger, be it a bank or an airport booth, will sell the foreign money at a higher rate, and buy it back at a lower rate. They turn a profit both going and coming. Same is true electronically, and then come the ATM fees and service charges.
Changing money is always a losing proposition for the customer, and just as true for transactions on plastic where nothing physical is visible.
Can't I Get Interbank Rates From a Bank?
The prices quoted by the Currency Converter are based on interbank
market rates and generally reflect the exchange rates for transactions
of US $1 million or more. These are the "official" rates quoted in the
media, such as The Wall Street Journal. Retail spreads (the difference
between the Bid and Ask prices) for smaller amounts are not reflected
in these interbank prices since they vary among payment systems,
I was in Europe this past June and July and used a DEBIT CARD tied to a CHECKING ACCOUNT at a local credit union to get local currency from ATM machines. I was never charged a fee by the ATM machine because I make sure I am using a local bank's ATM or my DEBIT CARD's network and never use one that is connected to one of those money exchange services (speaking of rip offs). In many transactions, the only charge I incurred was the 1% transaction fee that my credit union charges. In going to Europe for 13 of the last 14 years, I probably have only used a credit card for anything maybe a dozen times preferring to pay cash whenever possible and often getting a discount for paying cash. Also, some of the places I stay, like B&Bs, only accept cash. I also do not purchase any European currency here in the US getting better deals once I land there.