ATM/Debit cards in Spain

Tell your daughter never to use a credit card in an ATM machine. Use her debit card only. The reason is that if she gets cash with a credit card it'll be considered a "cash advance" for which there are hefty fees. But also tell her that ATM machines are the ONLY place she should use debit cards. Credit cards - or cash - are the better choice everywhere else. As Frank said, any debit card with a Visa/Mastercard logo will work at virtually any ATM in Spain.

Thank you for the responses so far!
I have been reading on the internet that a State Farm debit/checking card has no ATM fees abroad. Anyone use a State Farm debit/check card??

Kathy, let me restate this for you. There are NEVER any ATM charges from abroad. BUT, the card issuer (State Farm, in this case) can and may decide to add fees. These fees could include an ATM usage fee or withdraw fee of 1 to 5 dollars per transaction is common, a currency conversion fee of 1 to 3% is fairly common. Sometimes as a marketing ploy, they will say no foreign ATM fees, or no fees if you use certain ATMs associated with certain European banks but the point is that European banks never charge for the use of their ATMs. So read fine print carefully as to the fees that State Farm will charge. Personally I would rather go with a local bank or credit union that doesn't add fees. BUT YOU HAVE ASK,

I use my visa debit and visa credit...no problems...get the daily limit at one time...and you may have to use more than one atm machine to find the one that accepts your card. BBVA works on mine.

Any mastercard/visa based debit card will work. However, avoiding fees is up to your card issuer. There are NO fees charge in Europe for using a bank owned ATM machine. So check with your bank, etc. to determine fees. Generally credit union charge no fees or min fees. ALL FEEs are determined by the charge issuer. Our son spent a semester in Madrid and his debit card from the school credit union worked flawless. However, make sure your name is on the account so if a problem develops you can discuss the problem with the card issuer. The same problem with credit cards. There are some Capitol One cards that do not charge currency conversion fees.

Kathy, this is a great link that compares the fees card issuers charge for the debit cards and credit cards. http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange . Start Farm Bank (the one you asked about?) is listed as charging nothing on foreign atm withdrawals. The whole link is worth studying, as is this one: http://www.ricksteves.com/plan/tips/moneytip.htm

Thank you, again, all!
Most helpful and much appreciated!

A percentage fee, as Christine describes, is most likely from her own bank, not the Spanish one. I have used my fee-free credit union debit card in Ireland, Spain, Costa Rica, and China and was never charged a fee by the foreign ATM.

The previous poster's information about ATM fees charged by banks in Spain (or Europe for that matter) unfortunately isn't correct! I used the ATM at the bank "Caixa Catalunya" in Barcelona with my Citibank ATM card and was charged a 3% foreign transaction fee!!! I had always thought that if any fees were charged, it would be by my own bank, not the bank that owns the ATM!! Does anyone know whether BBVA also charges a foreign transaction fee to use its ATMs, or any bank that is fee-free? NOTE TO ALL: AVOID USING CAIXA CATALUNYA!!

Christine, are you sure it wasn't your own bank (Citibank) that charged the FTF? That is pretty routine unless you have a card from an issuer that doesn't charge FTF's. It is a fee for converting the currency, not for using the ATM.

Before you post negative information be sure you know the information. Caixa Catalunya is a highly regarded financial company in Spain. And I will bet money that they did not charge a fee to use their ATM as is customary with nearly all ATMs in Europe. I would say all except someone might find an exception somewhere. If there is a charge for using an ATM, as is common in the US, I have always seen a flat or single fee -- $2, $5, never a percentage fee. The 3% fee mentioned above was charged by the card issuer and described as currency conversion -- again very common in the US. We used CC ATMs in Spain in Jan 09 and were not charged anything. The key is you have to understand the fee structure for your card and sometimes that information is hard to come by.

Fees can change anytime so it pays to shop before each trip. Last summer, the worst fees I saw were at my bank (Wachovia that was bought out by Wells Fargo), $5 fee plus 3% for each transaction. The best were Charles Schwab money market accounts(and probably some other brokerage accounts and credit unions) that charged no fee on foreign ATM's. I don't mind paying something, I just want it to be reasonable so I opened an account with USAA and used it as my primary travel account. They charge 1% on each transaction. Next trip for me is in September so I'll reshop fees before my trip.

Christine is simply wrong. EU law prohibits banks from charging ATM fees. Some non-bank ATMs are essentially for-profit and can charge fees but those are rare and not affiliated with any bank. The conversion fee she noted was charged by her own bank and/or CC company and is typical for most banks. As posters have noted, some credit unions and Capital One do not but you must read all the fine print.

Citibank does indeed charge a 3% foreign transaction fee and the statement will show the name of the bank where you made the withdrawal. However, one thing I did notice in Spain is that a number of the ATMs seemed to have a prompt asking if I wanted the transaction to be converted to dollars. I always chose "no" as I always avoid dynamic currency conversion and let my bank do the conversion.

Luara,thanks for the tip!

Douglas, Which EU law prohibits banks charging for ATM use? I'm not familiar with it. Until not too many years ago several banks in the UK charged for non-customers. I know that most now don't but I believe that this is for business reasons, not a law. Can you direct me to the law, please?

Just remember to have a 4 digit pin number for any debit cards. European ATM machines won't accept a 6 digit PIN (like what Bank of America recommends)