Foreign ATM Withdrawals

[Fouremco]

When travelling abroad, I seldom use cash and make the vast majority of my purchases by credit card. Nevertheless, there are times when cash is really the best and sometimes only option. In general, I've found that the exchange rate when buying foreign currencies in Canada isn't as favourable as acquiring it abroad, and my approach has been to withdraw the funds from an ATM in the countries I'm visiting. To this end, the pre-loadable Stack MasterCard worked well, as it had no ATM usage fee and charged no foreign exchange fee. While not great for every day use at home, this card with no annual fee was a perfect choice for those foreign ATM withdrawals. Until earlier this year. Now, unless you spend at least $350 a month on regular purchases, they charge a forex fee of 2.5%.

 

So, now I'm looking for alternatives. What recommendations do you have for a card that ideally doesn't charge ATM withdrawal fees (I know that the local bank may have a small for the use of its ATM), doesn't charge foreign exchange fees, and is widely accepted in Europe? It can be a debit card, a pre-loadable credit card, or any other widely accepted format. I'm not looking for a regular credit card, as ATM withdrawals are considered a cash advance and you start paying interest immediately.

 

 

[netpj]

Hello Fouremco:  We use a Scotiabank Passport  Visa Infinite card for credit card purchases.  Purchases are at the going foreign exchange rate without any extra surcharges. It does have a yearly fee; however, as we usually travel more than once per year to Europe, we have found that it pays for itself.  We usually check the VISA foreign exchange fee website to verify that we have not been charged anything over and above the going foreign exchange rate.  On a recent extended trip to the UK, we found that the majority of merchants prefer credit cards to cash.  For ATM withdrawals we use a debit Scotiabank card linked to a bank account.  They have relationships with several European banks (list on their website) and if you are able to use the designated ATMs there is no withdrawal surcharge and an exchange rate that is reasonable.  Not sure if other Canadian banks offer the same type of cards.  Happy travels.

[Keata]

Have used this card without any issue throughout Europe, Mexio and the UK

https://www.cibc.com/en/personal-banking/prepaid/ac-conversion-card.html 

[netpj]

Just saw this from the Globe and Mail yesterday:

Credit cards without forex markups used to be a fringey niche in the travel reward category. But in the past few years, quite a few new competitors have come into the market from both banks and smaller competitors. To help you sort through the options, I found some online reviews and resources:

• A travel blogger picks the six best cards with no foreign transaction fees
• The Savvy New Canadians blog’s list of best cards includes a prepaid Mastercard with no forex fees
• CreditCardGenius does its usual thorough job of highlighting the features of the various options available – plus, there are user reviews
• Budget travel expert Barry Choi’s survey of the best cards in this category
• The Rates.ca list includes full details on the other features of cards with no forex fees
• GreedyRates offers a handy comparative chart

There are a few no-fee options for cards without forex fees, which means they’re ideal for people who already have a primary reward card and are looking for a backup. If you have any thoughts or tips on cards without forex fees, I’d love to hear from you. As ever, I can be reached at rcarrick@globeandmail.com or on Twitter at @rcarrick.

[LHT28]

I usually use my Tangerine  Debit card  to get  cash 

the fee was very small so I am not too worried  about it

 

I also get  cash at the currency exchange  here   it is still better than using a CC with the  FTF

I like to have a small amount of local cash  in case  the CC is not accepted

 

We also have  Home Trust Visa card with no FTF 

WE usually do not buy  a lot of expensive things when travelling  so if there is a fee along the way  it is not worth worrying about

JMO

[Fouremco]

15 hours ago, netpj said:

Hello Fouremco:  We use a Scotiabank Passport  Visa Infinite card for credit card purchases.  Purchases are at the going foreign exchange rate without any extra surcharges. It does have a yearly fee; however, as we usually travel more than once per year to Europe, we have found that it pays for itself.  We usually check the VISA foreign exchange fee website to verify that we have not been charged anything over and above the going foreign exchange rate.  On a recent extended trip to the UK, we found that the majority of merchants prefer credit cards to cash.  For ATM withdrawals we use a debit Scotiabank card linked to a bank account.  They have relationships with several European banks (list on their website) and if you are able to use the designated ATMs there is no withdrawal surcharge and an exchange rate that is reasonable.  Not sure if other Canadian banks offer the same type of cards.  Happy travels.

 

3 hours ago, netpj said:

Just saw this from the Globe and Mail yesterday:

Credit cards without forex markups used to be a fringey niche in the travel reward category. But in the past few years, quite a few new competitors have come into the market from both banks and smaller competitors. To help you sort through the options, I found some online reviews and resources:

• A travel blogger picks the six best cards with no foreign transaction fees
• The Savvy New Canadians blog’s list of best cards includes a prepaid Mastercard with no forex fees
• CreditCardGenius does its usual thorough job of highlighting the features of the various options available – plus, there are user reviews
• Budget travel expert Barry Choi’s survey of the best cards in this category
• The Rates.ca list includes full details on the other features of cards with no forex fees
• GreedyRates offers a handy comparative chart

There are a few no-fee options for cards without forex fees, which means they’re ideal for people who already have a primary reward card and are looking for a backup. If you have any thoughts or tips on cards without forex fees, I’d love to hear from you. As ever, I can be reached at rcarrick@globeandmail.com or on Twitter at @rcarrick.

Thank you both. I also received the Carrick's article in my email yesterday, but after I had had started this thread.

 

1 hour ago, LHT28 said:

I usually use my Tangerine  Debit card  to get  cash 

the fee was very small so I am not too worried  about it

 

I also get  cash at the currency exchange  here   it is still better than using a CC with the  FTF

I like to have a small amount of local cash  in case  the CC is not accepted

 

We also have  Home Trust Visa card with no FTF 

WE usually do not buy  a lot of expensive things when travelling  so if there is a fee along the way  it is not worth worrying about

JMO

We never buy expensive items when travelling either. Like you, we have the Home Trust Visa for all non-cash purchases outside Canada.

[Fouremco]

6 hours ago, Keata said:

Have used this card without any issue throughout Europe, Mexio and the UK

https://www.cibc.com/en/personal-banking/prepaid/ac-conversion-card.html 

Thank you, this certainly seems to be the best replacement option for the Stack card that I've explored so far.

 

 

 

[iancal]

7 hours ago, Keata said:

Have used this card without any issue throughout Europe, Mexio and the UK

https://www.cibc.com/en/personal-banking/prepaid/ac-conversion-card.html 

When you load this card with foreign currency, say 1000 euros, are you charged the current FX rate (the visa FX rate or the xe rate)  or do you pay a premium?  

 

 

Edited June 29, 2022 by iancal

[Munday]

At first glance it appears to be a good alternative to Stack. Then I read the discussion about the card here:  https://forums.redflagdeals.com/ac-conversion-card-cibc-2026607/35/

[Magicat]

I've used the AC Conversion card through CIBC and Air Canada.  You can load it with 7 or 9 different currencies and even transfer between currencies on the card using your phone.  Used it a couple of times in Europe but now just use a CIBC prepaid Visa in either MXN or EUR.  Found it easier to manage than the Conversion card.

[cmich068]

I think the Wise Prepaid Card is the closest thing to the old Stack card now. I have one but full disclosure haven't used it yet so can't give a personal experience.

 

I did look into the CIBC Conversion card that others have mentioned but I don't think the exchange rates and fees were any more competitive than just using my credit union's debit card. 

Edited June 30, 2022 by cmich068

[Adventures ahead]

On 6/28/2022 at 8:08 PM, netpj said:

Hello Fouremco:  We use a Scotiabank Passport  Visa Infinite card for credit card purchases.  Purchases are at the going foreign exchange rate without any extra surcharges. It does have a yearly fee; however, as we usually travel more than once per year to Europe, we have found that it pays for itself.  We usually check the VISA foreign exchange fee website to verify that we have not been charged anything over and above the going foreign exchange rate.  On a recent extended trip to the UK, we found that the majority of merchants prefer credit cards to cash.  For ATM withdrawals we use a debit Scotiabank card linked to a bank account.  They have relationships with several European banks (list on their website) and if you are able to use the designated ATMs there is no withdrawal surcharge and an exchange rate that is reasonable.  Not sure if other Canadian banks offer the same type of cards.  Happy travels.

We also use a Scotiabank debit card and use one of Scotiabank's Global Alliance bank ATMs (country specific) for cash withdrawals.

[eclipst]

When in Greece earlier this year, I was expecting to use my HSBC (Canada) card to withdraw funds from Euro dollar account at HSBC ATMs, but it only allows you to withdraw funds from your primary (CAD) account, charging the usual 2.5% over the (presumed) midmarket rate. 
 

Global Alliance is good for avoiding ATM fees if you can find a partner ATM, especially in your destination airport.

 

I'll try out the Wise card next month. I was able to fund the card with Euros otherwise stranded in my HSBC Euro account. (I've used Wise for funds transfers between US and Canada, and am generally happy with them. However, if you need support while they're available by email, there is no voice or chat support.)

[iancal]

We typically avoid $500-750  credit card FX charges each year by using the no fee Home Trust Card. 

 

It is not unusual for us to buy travel products in other countries.  Last two five day AI stays in Mexico were purchased from a UK firm in GBP.  Same with  cruises purchased in USD and AUD.

 

The difference can add up quickly.  It becomes even more apparent if you buy, and then have a refund at a later date.  All of a sudden you have lost 5 percent on the transaction because you get dinged both ways.

 

We saved $150 on our recent Portugal land trip.  Simple to calculate.  It just total credit card purchased X 2.5 percent. 

 

Canadian banks are coining it on FX charges.  My goal is not to encourage them.

Edited June 30, 2022 by iancal

[Munday]

We’ve been using Brim Mastercard as our daily driver since 2018. Brim charges no foreign transaction fee and it’s basic card has no annual fee. Their World Elite product has no annual fee for a year right now.  
 

https://brimfinancial.com/credit-cards

[iancal]

Is there a Canadian bank/trust  card that does not charge the 2.5-3 (and sometimes more) percent FX fee for foreign ATM withdrawals? 

 

Or a preloaded FX cash card that does not charge the 2.5-3 point FX fee when loading it up?

 

 

Edited July 2, 2022 by iancal

[dawnvip]

I found the CIBC AC Conversion card to be a PITA:

- can only load Canadian dollars onto the card and then buy foreign currencies at normal (mediocre) CIBC bank rate of the day. If you happen to have left over foreign cash from your trip, or a US funds (or other) account, it is not possible to load those funds onto the AC Conversion card

- you can only do a wallet transfer once per day. This means if you have $500 CAD loaded on the card and want to transfer $300 to Euros wallet and $200 to GBP wallet, you have to do it over two days. 

 

DH uses his credit union debit card for ATM withdrawls. Fees were only $4 and rate was better than CIBC!

[iancal]

16 hours ago, dawnvip said:

I found the CIBC AC Conversion card to be a PITA:

- can only load Canadian dollars onto the card and then buy foreign currencies at normal (mediocre) CIBC bank rate of the day. If you happen to have left over foreign cash from your trip, or a US funds (or other) account, it is not possible to load those funds onto the AC Conversion card

- you can only do a wallet transfer once per day. This means if you have $500 CAD loaded on the card and want to transfer $300 to Euros wallet and $200 to GBP wallet, you have to do it over two days. 

 

DH uses his credit union debit card for ATM withdrawls. Fees were only $4 and rate was better than CIBC!

No surprise.  Long time CIBC customer.  One thing CIBC excels at is service charges...hidden and otherwise.

 

Not the least bit surprised at your comments.   On longer trips we have actually used cash advances on our credit card for ATM withdraws.  We establish a credit balance so there are no interest charges.  Works for trips to Thailand or parts of Europe where our ATM withdrawals are often the equiv. of  $600. to facilitate cash payment of accommodation expenses.   Other times it is better to simply pay a vendor surcharge of 3 percent on our HT card for credit card purchases.

[CanEcosse]

On 6/28/2022 at 4:41 PM, Fouremco said:

So, now I'm looking for alternatives. What recommendations do you have for a card that ideally doesn't charge ATM withdrawal fees (I know that the local bank may have a small for the use of its ATM), doesn't charge foreign exchange fees, and is widely accepted in Europe? It can be a debit card, a pre-loadable credit card, or any other widely accepted format. I'm not looking for a regular credit card, as ATM withdrawals are considered a cash advance and you start paying interest immediately.

The WISE.com site says that the CIBC AC conversion card allows "one free ATM withdrawal per month outside Canada". If true, it means it is good for charging amounts but not for ATM withdrawals which was your original question.

 

[Fouremco]

4 hours ago, iancal said:

Other times it is better to simply pay a vendor surcharge of 3 percent on our HT card for credit card purchases.

If you are using your Home Trust card, why would there be a 3% surcharge from the vendor when you make a purchase? 

[Fouremco]

2 minutes ago, CanEcosse said:

The WISE.com site says that the CIBC AC conversion card allows "one free ATM withdrawal per month outside Canada". If true, it means it is good for charging amounts but not for ATM withdrawals which was your original question.

 

I suppose that it would be OK if you only needed to make a single ATM withdrawal during a trip, but our next trip required two different currencies. On the other hand, we arrive late in the month, so we may be able to make do with the first withdrawal and hold off getting the second one until the beginning of the next month. Assuming, of course, that "one free ATM withdrawal per month" means once per calendar month, so one on the last day of August and one on the first day of September would be acceptable.

[gnome12]

10 minutes ago, Fouremco said:

If you are using your Home Trust card, why would there be a 3% surcharge from the vendor when you make a purchase? 

I think that iancal is talking about vendors that charge for using a credit card. It does exist in some countries.

[Fouremco]

1 minute ago, gnome12 said:

I think that iancal is talking about vendors that charge for using a credit card. It does exist in some countries.

Ah, of course. I forgot that still exists in some areas.

[iancal]

3 hours ago, gnome12 said:

I think that iancal is talking about vendors that charge for using a credit card. It does exist in some countries.

Yes.  Common in SE Asia.  Also had it happen once in Australia.

[iancal]

We used cash advances on the now cancelled Marriott Amex no FX charge card for several years.

 

We would avoid  interest charges by having a credit on the account at least equal to our withdrawal amount.  We never incurred a dime of interest.   A typical CIBC foreign ATM  withdrawal for us  would cost $12-14 in fees and added FX charges.  The same amount, done through a cash advance would be less than $7.  We started doing this when we were on a seven month extended international land trip.

 

Have not done a HT cash advance in a similar way but plan to on our winter trip:

 

; 1.50% (Minimum fee of $5.50 and Maximum fee of $15.00) if the ATM is located outside Canada and the United States. This is in addition to any other charges that may be levied by the owner/operator of the ATM.