we recently opened an account a Bank of America just to get their ATM Card, We thought that we would not have to pay an ATM fee and would get the current exchange ratw when we withdrew funds from BNL Italia. Today we were told that BNL Italia would charge the same exchange rate we would get if we purchased the EUROs here. Today the exhange rate is 1.24 but BOA or BNL would charge 1.33.
Is this correct? Carlene
Posted by
Tresana, Highlands Ranch, CO, USA
23653 posts
I am sorry but I don't understand. Who gave you that information? At an ATM in Europe with a debit card you will receive an exchange rate that is within one percent of the interbank rate at or about the time of the withdraw. BOA might add fees to the withdraw but the starting point is always the same.
Posted by
Seattle, WA, USA
7737 posts
Per Rick's Travel tips on money: Throughout Europe, cash machines (ATMs) are the standard way for travelers to get local currency. European ATMs work like your hometown machine and always have English-language instructions. Using your debit card with an ATM takes dollars directly from your bank account at home and gives you that country's cash. You'll pay fees, but you'll still get a better rate than you would for exchanging traveler's checks. (snip) ATM transactions using bank-issued debit cards come with various fees. Your bank may levy a flat $2–5 transaction fee each time you use an ATM, and/or may charge a percentage for the currency conversion (1–3 percent); the ATM you use might charge its own fee, too. If your bank charges a flat fee, make fewer visits to the ATM and withdraw larger amounts. (Some major US banks partner with "corresponding" European bank chains, meaning that you can use those ATMs with no fees at all -- ask your bank.) Other fees may apply; for all the details, see The Sleaze of Fees, below. These additional expenses can pile up. Quiz your bank to figure out exactly what you'll pay for each withdrawal.
Posted by
OP
Bloomfield, MI, USA
8 posts
Thanks,
I called B of A Foreign Exchange Dept. and was advised that the exchange rate is set by Visa and Master Charge and depends on several things. However, once the rate is determined it is the same at all ATMs. Only the fees change depending on what ATM is used. It appears that the exchange rate charged is somewhat higher than the official rate, but still less than the exchange rate would be if I bought the Euros at the local bank. Carlene