Using the wrong ATM in Europe could cost you hundreds of dollars

That could not be proper, I instructed him. However his receipt from an organization referred to as Euronet confirmed the breakdown: a transaction charge of three.95 euros, an alternate fee of 0.82 euros to the greenback and a 13 % markup from the going alternate fee.

I requested him whether or not the ATM had disclosed these bills in the course of the transaction.

“I noticed the three.95 euro charge,” he mentioned. “However I didn’t discover the alternate fee and the markup.”

Many shoppers additionally fail to see unfavorable alternate charges that enable some firms to money in.

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“That’s one of many hidden ATM prices,” mentioned Arun Tharmarajah, head of European banking and enlargement at Wise, a monetary tech firm that makes a speciality of on-line cash transfers. “Clients don’t learn about them.”

So why am I kicking myself about these excessive ATM bills? As a result of I knew about them, and I ought to have mentioned one thing.

I routinely hear from readers who report charges and surcharges that just about make the alternate fee from the ATM in Greece appear like a discount. And again in 2020, after I was dwelling in Lisbon, I encountered an expensive ATM operated by Euronet.

I had spent the final of my euros on a loaf of contemporary pão de centeio at a cash-only native bakery. Simply throughout the road, I noticed an ATM. I used to be relieved when it accepted my card, however that feeling shortly gave approach to dismay. The alternate fee regarded off. As an alternative of my U.S. greenback being value 0.90 euros, it solely gave me 0.80.

Then I checked the numbers: The machine charged a $4 charge, plus a 12 % markup — displayed on the display screen in small print — for exchanging my {dollars}.

Euronet Worldwide operates a community of greater than 50,000 ATMs in 63 nations, in accordance with the corporate.

Stephanie Taylor, a spokeswoman for Euronet Worldwide, mentioned all of its fees are “clear, clear and prominently displayed” earlier than each transaction. “The client might choose out of the transaction at any time for gratis,” she mentioned in an electronic mail.

She mentioned that Euronet is dedicated to providing handy money to individuals all over the world, however that there’s a price concerned with offering this service, “which we consider is truthful and cheap.”

Simone Semprini, who lives in Lisbon and is the CEO of TourScanner, a comparability website for excursions and actions, says excessive ATM charges are a giant concern for his clients.

“In the previous couple of years, we’ve seen the rise of ATMs that cost big commissions,” he mentioned.

The ATMs endear themselves to locals in two methods. First, they handsomely compensate the shopkeepers who host them. (Retailers have instructed Semprini that they obtain as much as $1,000 a month to maintain a money machine at their location.) They usually additionally enable clients with a checking account within the ATM’s residence nation to withdraw with decrease charges.

Greg Grobmyer, a dentist from Tennessee, says he was surprised when he returned from a visit to Poland and located $100 in commissions and costs on his bank card invoice. He had discovered a money machine in Krakow after needing to settle a lodge invoice. Though the alternate fee didn’t look nice, he didn’t run the numbers earlier than accepting his withdrawal.

“It’s unnerving to see these not-so-tiny commissions mounting as much as lots of of {dollars},” he mentioned in an electronic mail. “Particularly if you happen to can keep away from them.”

Learn how to keep away from excessive ATM fees

So how do you keep away from excessive ATM fees? Preparation is vital.

Name your financial institution earlier than you allow the nation to seek out out what sort of out-of-network ATM charges it fees for abroad transactions. Some banks waive the charges or will credit score you after you come to the US.

Michael Foguth, founding father of Foguth Monetary Group in Brighton, Mich., recommends calling your financial institution earlier than your journey to order some forex of the nation the place you’re touring. He says it could be inexpensive, however not free. It requires an in-person go to, and your financial institution may supply a much less favorable alternate fee whenever you purchase international forex.

There are workarounds when you’re on the bottom. Mine was to move to a financial institution ATM, which can offer you a greater alternate fee. Nonetheless, it’s not an ideal resolution: Midway by way of the transaction, the machine requested whether or not I needed to conduct the transaction in {dollars} or euros. As with bank cards, it’s finest to conduct transactions within the native forex and let your financial institution do the conversion.

One other repair: utilizing a multicurrency debit card to scale back your alternate prices. The monetary companies app Revolut, for instance, converts your cash on the extra favorable interbank fee. (That’s the speed banks cost one another to alternate cash.)

For transactions at out-of-network ATMs, Revolut doesn’t cost a charge for withdrawals of as much as $1,200 (or the native forex equal) per 30 days. After that, it fees a 2 % charge of the worth of an ATM withdrawal.

Wise, one other widespread app, additionally makes use of the true fee and fees for exchanges on a sliding scale. It’ll price about $4 to transform $1,000 to euros. For ATMs, there’s no cost for the primary $250 in a month, and also you pay a 2 % charge for something above that.

Andy Abramson, who runs a communications consultancy in Las Vegas, has used each companies and says he prefers them to conventional financial institution transactions.

“I load them up with cash after which use them when touring,” Abramson mentioned. “I can add cash when wanted in seconds and be spending regionally in native forex with none charges.”