Comments on: Getting cash while travelling: are ATMs really a rip-off?

By: Sam Clark

Sam Clark — Thu, 11 Nov 2010 11:56:37 +0000

Personally I always use my Nationwide debit card – with a ‘no fee’ foreign withdrawal policy. The exchange rates are decent – works out well unless I need large amounts of cash when negotiating a with a local bank/exchange counter and paying by credit card almost always brings the best results. I belive a few other banks also have debit cards with a similar policy.

Caxton FX have a card which sounds similar to the Schwab card mentioned above (?) – basically visa a card which you can charge up and withdraw on a fixed percentage off the current market rate.

For anyone paying very large amounts (buying property, doing business etc…) it is is absolutely essential that you use a reputable currency dealer and shop around for the best deal. Using your bank will cost you a lagre amount of money!

By: Jennifer Tice

Jennifer Tice — Mon, 18 Oct 2010 00:56:15 +0000

I totally agree! I have used atm’s across Australia, and all over Asia. Different banks are going to charge you different amounts so it’s best to check with your branch before you leave. Also, the most important part – you can carry less money on you at all times. In the unfortunate event that your stuff gets stolen, those few extra dollars in bank fees are worth losing a large amount of cash!

By: Andy Jarosz

Andy Jarosz — Sun, 17 Oct 2010 21:42:11 +0000

Thanks for the many good bits of advice here. Agree with you Tony – it’s common sense but surprising how many people arrive in a country without knowing the correct FX rate. Oanda is an excellent resource for this.

By: TonyW

TonyW — Sun, 17 Oct 2010 20:13:08 +0000

Let me first echo the Schwab endorsement – I have had a Schwab account since 1977 (!), well before ATMs came on the scene.

Next, I put dealing with Travelex in the same category as flying with Aeroflot – something to be avoided at all costs. Speaking of costs, I find that the difference between their buying and selling rates, even for stable currencies, is about 20%, with the official exchange rate in the middle. So they are taking 10% off the top in addition to any commission they might charge.

Finally, make sure that you know the official exchange rates when you go to change money. Websites like oanda.com (Android and iPhone Currency converter app, too.) and xe.com are very valuable for that. Sometimes you have to change money in an airport before you can find an ATM, so knowing the rate helps you decide how much to exchange.

By: Jack

Jack — Sat, 16 Oct 2010 01:28:10 +0000

All, if you’re from the US I highly recommend Schwab. Zero fees, people!! We were referred to Schwab by another traveler (Colin) prior to our move to Thailand, & it has worked out great. I assume anyone in the US can apply for it. Even purchases internationally with their visa check card are fee free, and you don’t have to hunt around for specific ATMs. Not sure how well known this is amongst the travel community, but based on the responses here perhaps it’s worth a blog post. =)

By: rebecca

rebecca — Fri, 15 Oct 2010 17:29:03 +0000

Great post! For me, I’ve never had an issue with ATMs because my bank is global (Citibank). I avoid being charged twice by going to my bank’s branch in the country I’m in. While this is not always possible, my bank just charges a 1% fee for my transactions if I have to visit a foreign bank’s ATM and yes, they charge me too, but it’s never been a debilitating amount. I usually only withdraw once or twice depending on how long I’m there for to minimize the costs.

By: Andy Jarosz

Andy Jarosz — Fri, 15 Oct 2010 07:08:51 +0000

Hey Jack, thanks for stopping by. The Scwab account sounds perfect for the long -term traveller. Is it well known among the travel community? Can anyone (in the US) open a Schwab account? We need a UK equivalent!

By: Jack

Jack — Thu, 14 Oct 2010 13:45:31 +0000

Hi Andy,
Any story involving $$ while traveling is always a timely post. We were fortunate enough to be told about Schwab checking accounts in states, as their ATM check card (with Visa logo) reimburses ALL ATM FEES charged by other banks (at end of each billing cycle), internationally. Normally the fees here in Thailand is 150B per withdrawal, which is about $5USD, fairly high by any standard. Plus, the exchange rates tend to be higher than purchasing/exchanging for local currency (Thai Bahts). Even using the check card for credit card purchases, there are zero fees as well.
So, this allows us to skip the currency exchange booths altogether, wherever we go.

For those of us fortunate enough to get a Schwab account, it’s one less thing to worry about.
*Disclaimer: I was not paid by Schwab or received any kickbacks from them… Just a happy customer. =)

By: Andy Jarosz

Andy Jarosz — Wed, 13 Oct 2010 19:10:46 +0000

Thanks for the comments guys. Dave, you know the one place I’ve been really stung on ATM fees is in Cambodia. The machines dispense USD but like you say the Cambodian bank charges you, the UK bank charges you and the USD rate isn’t great. But even after all of that, the rate was still around the equivalent of a UK bank.
Good point about letting the bank know about travel plans. Some banks now allow online travel notification which is great, as you can let them know at short notice while on the road. Getting your cards stopped is no fun, for sure.
Ronnie, one of the things I like about using ATM is the security of not carrying large sums around but still being able to access cash 24/7. It’s just a question of whether you value that enough to pay the premium in places like SE Asia.

By: Ronnie

Ronnie — Wed, 13 Oct 2010 08:39:34 +0000

Very timely post Andy I’ve always advised people to buy in advance and use online agents.

Going online and using Crown Currency Exchange or Travelex has always given a better rate than in the US or Europe. However I’ve just read Crown has gone bust leaving people thousands of pounds out of pocket.

Maybe ATM’s are the way to go.