am I the only one seeing increased conversion rates at atm in Italy?

Robert, do the ATMs not allow you to conduct the transaction in euros?

Were these bank-owned ATMs?

Dynamic Currency Conversion (DCC).

This has been an issue for 10 years and is only getting worse. As a "convenience" the ATM or merchant offers to charge you in your home currency, US$, but uses their own conversion rate to do it. And you have noticed the rate is not in your favor. If you see anything about how much the transaction is costing you or rates, they are trying to do DCC. There is supposed to be a button to click to skip this and just do the transaction in Euro or whatever the local currency is and giving you the network rate which is the best possible.

The 3 or so Euro fee is something else. US ATMs have charged use fees forever, Europe is finally just catching on to the fact they can make money by charging fees. This fee should be clearly noted on the ATM long before you complete the transaction so you can cancel and go to a different machine.

Airports are really bad about this. Just check to see that you are using an ATM that is bank affiliated to reduce the DCC issue.. Bancomat seems to be a network name now for an exchange and is no longer just the generic name for an ATM..

You probably are accessing a private ATM most likely owned by a currency exchange company. A bank owned ATM does not structure its fees in the manner that you reported. With debit and credit cards, the exchange rate is determined by the card network -- generally PLUS or CIRRUS. Banks are not involved and would not know the exchange rate at the point of usage. When withdrawing money from an ATM via a debit card all you should see is the amount request and any additional fees imposed by the owner of the ATM.

now called ATM

Frank is right. Since Italians keep on calling them Bancomat and keep on looking for the Bancomat logo, you must have stumbled upon a machine owned by Some Currency ExChange Company. A machine obviously aimed to make money only with foreign tourists who look for ATMs, an Italian would think at a machine owned by Milan's Transit Authority (called ATM) living a power trip in the south.

Robert,

I suspect the high conversion rate was another example of the DCC scam, as mentioned above. Did the machine give you a choice of processing the transaction in local currency or your home currency?

The fact that it was labelled as an "ATM" would seem to indicate that it's targeted at tourists. Were the machines at the airport or in each city?

I don't have any particular insight to add to this discussion, but I was in Italy a few weeks ago and we felt that the conversion rate/fees were pretty outrageous every time we went to an ATM. We never had an instance where it seemed reasonable.

I have found that many banks now charge a fee for using their ATm's unless you are their customer or of an affiliated company . I have a card with no transaction fees and no conversion fees when abroad but many places have charges ,I just look around different banks that do not charge me for using their ATM's (not always possible or practical ) DCC is a whole other kettle of fish. In Prague last month 3 banks were charging me a fee for using their ATM 2 were not.

Some ATMs (bankomats) ask if you want to withdraw in USD, always select no conversion. Use an ATM at an actual bank, preferably in a secured entryway. Never pay anything in USD in Europe. Choose the local currency.

That being said, within the last two-three weeks the exchange rate has worsened from $1.12 to almost $1.14 per 1 €

I was in Italy for several weeks this spring, returning in late May. I used bank ATMs exclusively and rates were all consistent with what I saw on OandA (1.12-1.14 range), so very fair exchange rates. I suspect those experiencing unfavorable exchange rates are either using private network ATMs or are accepting DCC. It's best to avoid any ATM not clearly associated with a bank and to be sure to change the language to English to minimize the chance of inadvertantly accepting DCC.

We came close to being victimized by one of these in Greece. It was a "Euronet" ATM. Simply decline the conversion offered and you'll be fine.

Can always count on the RS forum people for answers, stories, and suggestions! Guess that's why we all are here! Thanks for the answers, stories and suggestions - will see what happens at the bancomat tonight! Stay tuned.

Ciao Robert, I just got back from Italy last Saturday. The only Bancomat I used there was the same exact bank. ATM receipt says Banca Monte Dei Paschi Di Siena. I found one in the Venice airport, and one outside the train station in Florence.

I tried to use my ATM card at a bank ATM that seemed legit, it was even in one of those inside areas that I had to swipe my card to get in. That screen said something like "this would be the amount it will cost you with fees". I wanted to take out 400Euro, and it was showing me something like 469Euro for the whole amount. I canceled and moved on. I looked at my bank app and saw that for the two times I withdrew 400Euros it was around $449-$453, which is definitely more like it. Good luck!

I wasn't charged any feeds at ATMs in Italy last month. But, I always chose euros for my currency to withdraw / be charged in, not USD.

I drew Euro cash in Barcelona. I do not recall the ATM stating extra charges or a change to dollars. I entered Euros! I was charged a $20 dollar fee! I am on the phone to my Debit card server.

I thought I was smart enough to avoid this scam but recently the PNP Paribas ATMS in Paris were doing this; I did not realize I was agreeing to dynamic conversation because of the way it was worded on the screen -- I thought it was just notice of fees. So we got hosed several times on withdrawals with these ridiculous fees -- this was at the bank machine not a commercial machine. I had encountered it in Spain but not before in Paris and this year not only did the bank hose us but there were many merchants who would ask if you wanted it charged in Dollars -- I know to reject that, but the bank one was stealthy and I missed its significance.

Always say no when they ask you to approve this on an ATM.

I never had an ATM try to charge me in dollars to obscure a bad exchange rate, but it would not surprise me. Especially in Italy. When I was in Italy in May 2019, I tried to draw cash out of a TravelX ATM and they wanted 3.5 Euros plus a 6% premium over the interbank rate which was 1.12 at the time. That's on top of the $5 per transaction my bank charges me. It's actually pretty hard to find an ATM attached to a bank near St. Mark's Square in Venice. I did not try the ubiquitous Euronet ATMs, because they were obviosuly not attached to a bank. Surely the terms would not be favorable, I reasoned.

"I never had an ATM try to charge me in dollars to obscure a bad exchange rate"

As Janet says, be careful - this didn't used to "be a thing," but now it is. And as Janet found, it can be phrased in very sneaky ways. When paying with a credit card, you'll be asked in a straightforward way if you want to be charged in USD or local currency. But at an ATM, it may just say "do you want to lock in a rate of $XXX.xx" or, as Janet said, ask if you approve of "the following fees and charges" without making it clear that it is really dynamic currency conversion.

I almost fell for this in Switzerland in 2017 at an ATM in the Zurich airport, both because I was jet lagged and because the airport ATM didn't try this trick in 2014 (so I wasn't expecting to have to be on guard).

ok, thanks to the RS gang and some snooping on my own, the mystery is sort of solved! an ATM seems to belong to the 'currency exchange' people. they charge 12% over the official rate plus the machine usage fee. a bancomat, attached right to a real bank, is where you want to get your money. they give you money at the official rate but they also charge about a 3 euro usage fee. thank you USAA bank for refunding me the usage fees!