ATMs or automated teller machines are one of the great advances that allow us to enjoy money without worrying about money when we travel.
But like all banking services, its use generates commissions that are the payment we make to banking institutions for this service. However, there are some tips that can save you fees when using ATMs abroad.
Here, we tell you the most relevant, as well as other tips regarding money when you travel.
- A first note of warning. When you look for an exchange before the trip to change your local money, if possible do not change it to US dollars, unless you go to the United States or a country whose currency is not available at your exchange house. If you change your local currency to US dollars and then travel to, for example, Switzerland, when you arrive at your destination you will have to exchange the dollars for Swiss francs. This will result in you having paid double commission for currency exchange: from your local currency to dollars and from dollars to the currency of the destination country.
- Keep in mind that not all of Europe uses the euro as its currency. Even member countries of the European Union such as Sweden or Denmark retain their own currency. Make sure about the currency of your destination country to avoid the double commission for currency exchange.
- Although it is better to pay what you can with your cards, always carry a reserve or emergency fund in cash in the currency of your destination country.
- It may happen that when you arrive at customs to enter the country of destination, they ask you for your statement of account to show that you have how to pay for your stay. Take that document with you, just in case.
- It is good that you familiarize yourself with the way in which the expenses in foreign countries are reflected in the statements of account of the credit cards. The account statements reflect the amount spent, the date, the currency used, the exchange rate and the equivalent in the currency of your home country where you opened your account.
- As we said before, it is better to pay as much as you can at your destination with a credit or debit card: accommodation, meals, vehicle rental. The commission is less than if you go to an exchange house. Try as much as possible to conserve cash for eventualities or emergencies.
- If you need cash you can withdraw from an ATM with your credit or debit card. Previously, it was recommended to call the bank to notify that you were going to use your credit cards abroad, but that is no longer necessary. Keep in mind that when you withdraw cash with your cards you will be charged double commission: the currency exchange plus a commission for using the ATM.
- In some restaurants, the point of sale machine may ask you if you want to pay for consumption in the currency of your home country or the country where you are. We recommend choosing to pay with the currency of the country where you are to avoid commission.
- When we withdraw from an ATM, the cashier usually notifies the withdrawal commission before giving the money. If you see that it is a fixed amount like $ 2 per withdrawal, withdraw everything you may need at once. If you see that it is a percentage of the withdrawal, let’s say 10%, you can withdraw as many times as you need.
- As we said, when you go abroad and withdraw money from an ATM, they debit you two commissions: the first is the one charged by the bank as such when you withdraw from another bank that is not the bank of your funds. The second is the commission charged by the ATM. You could avoid the first commission if you find out with the bank that has your funds if they have some kind of agreement regarding commissions with a financial institution in your destination. If so, take money out of that bank to avoid bank-to-bank commission.
And that’s it!
With these simple tips we have saved money in our financial transactions abroad. If you look at the accumulated amount of money saved in commissions, it is a really significant amount.
As you can see, many of the best actions are the simplest.
If you know any other tip to save us commissions or trouble regarding money on our trips, leave the comment below.
