{"id":12045,"date":"2014-11-25T10:24:42","date_gmt":"2014-11-25T15:24:42","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=12045"},"modified":"2014-11-25T10:24:42","modified_gmt":"2014-11-25T15:24:42","slug":"how-to-avoid-atm-fees-when-traveling-abroad","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/how-to-avoid-atm-fees-when-traveling-abroad\/","title":{"rendered":"How to Avoid ATM Fees When Traveling Abroad"},"content":{"rendered":"

\"ATM\"<\/a><\/p>\n

Nick Giambruno, Senior Editor at Doug Casey’s International Man discusses the pitfalls of ATM fees when traveling abroad and the best ATM card to use.\u00a0 Besides my local bank debit cards, I carry this one from the US that link my account back there.<\/p>\n

Chances are that it\u2019s happened to you.<\/p>\n

You\u2019re in a foreign country and you need cash, so you find an ATM and withdraw some. The next thing you know, you\u2019re slapped with a cornucopia of fees and charges.<\/p>\n

Considering the alternatives\u2014like going to a currency exchange counter\u2014ATMs are generally the least painful way to get cash abroad.<\/p>\n

Even though the fees are usually lower, using ATMs can still burn a pretty big hole in your pocket.<\/p>\n

Of course, one way to avoid ATM withdrawal fees abroad is to use credit cards for your purchases. But in most cases you\u2019re just swapping ATM fees for credit card fees, and the net effect is about the same. That is, unless your credit card doesn\u2019t charge a foreign transaction fee, which can be up to 3%.<\/p>\n

But finding the best credit cards to use abroad is a topic for another day. For now, we are focused on the best ways to access cash abroad.<\/p>\n

Of course there are many things that cannot be paid for with a credit card anyway, particularly in less developed countries. No matter where you go, you\u2019re going to need some cash.<\/p>\n

Read on to find the best way to access cash while travelling abroad.<\/p>\n

Picking Your Pocket with Fees<\/strong><\/h3>\n

When you withdraw cash from a foreign ATM, there are four types of fees you have to look out for.<\/p>\n

Naturally fees vary by bank, but no matter how you slice it, you\u2019re going to get hit with a combination of the ones below.<\/p>\n

1. Flat Fee from Your Bank:<\/strong> This is a fixed fee that your bank charges for using ATMs outside of its network. These fees usually vary between $2 and $5 and veer toward the higher end for foreign withdrawals.<\/p>\n

2. Flat Fee from the Foreign Bank:<\/strong> Not only do you usually have to pay a fixed fee to your bank, but you also have to pay a fixed fee to the foreign bank which owns the ATM you\u2019re using. This again is usually in the range of $2 and $5.<\/p>\n

3. International Transaction Fee:<\/strong> Instead of a fixed fee (or in addition, if you are unlucky), your home bank may charge a percentage fee for foreign withdrawals. These are in the neighborhood of 1-3%.<\/p>\n

4. Currency Exchange Fee:<\/strong> The ATM interbank network\u2014like Plus (operated by Visa) or Cirrus (operated MasterCard)\u2014will also take a 1% cut.<\/p>\n

All this adds up.<\/p>\n

A typical case would be getting hit with two fixed fees\u2014one from your home bank and the other from the foreign bank\u2014and then a 1% charge from the ATM interbank network. A worse case would also include getting hit with an extra 1-3% fee.<\/p>\n

So let\u2019s look at a typical and rather conservative example.<\/p>\n

Assume you withdraw the equivalent of $100 twice a week, and you get hit with the following fees per withdrawal:<\/p>\n