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Foreign ATM Fee
Explanation:
Many banks charge a special fee for ATM transactions made outside the U.S., just as they do for foreign debit card transactions. The rationale given is that the fees cover the costs of currency conversion and mitigate the increased risk of fraud that comes with international use of an ATM or debit card.
The amount of the foreign ATM fee can be structured in several ways, and depends not only on the policies of the bank issuing the ATM/debit card, but also on the terms of the bank that owns the ATM. For example, the bank issuing the ATM/debit card may charge a flat fee of $1 to $5 for each transaction, plus a percentage, typically 1% to 3%, of the amount withdrawn from the ATM. Some banks charge only one of those fees, but many charge both. In addition to that, the foreign bank may also charge a fee for the use of its ATM.
Our Thoughts:
Experts in both the travel and finance sectors urge consumers to contact their banks before an overseas trip to review the specific fees they will be charged for international ATM use. Some banks and credit unions offer ATM/debit cards with no foreign transaction fee.