null 6LfQBNMaAAAAAB20bgo7eaKldKSxGDydq-mkb_NC
Travel Money

Using an ATM abroad? make sure that you click the 'No Conversion', 'Without Conversion', or 'Debit in Local Currency'!

send money abroad international payments

Katherine Green

Guest blog post

best currency rates

December 2020

According to Mintel research, 43% of holidaymakers used a debit or credit card last year and this seems to be on the rise with the 30-45 year age group.

So, with this in mind how do you minimise the charges by ATMs on these cash withdrawals? You need to look for the Conversion Question or prompt and then simply click No!

the currency club
currency club

When you use your card abroad the ATM will automatically know where your card was issued. Eg UK it will then recognise that your card is "foreign" and will ask you if you want it to debit your account in your card's native currency, GBP, using an exchange rate shown on screen, or in the local currency where you are visiting, perhaps you're in Spain and therefore euros for example.

The ATM screen will confirm that it will only pay out in the local currency eg euros, it will also highlight a surcharge of 6% which will be included in the rate displayed on screen and the exact GBP cost for taking out the euros.

If you click continue you will get ripped off as the ATM provider can offer their own exchange rate which will usually have a spread or mark-up on the interbank rate (6% in this case) enabling the ATM provider to make a nice profit on your transaction.

Instead, select to debiting your account in the local currency (EUR). Although you won't see the exact cost in GBP for taking out the euros, (it will most likely be in euros) it will mean your card issuer handles any currency exchange. You then benefit from using your bank's exchange rate as opposed to heavily marked up exchange rate by the ATM.

Always select local currency and No Conversion options to save money when withdrawing from an ATM.

The above process of displaying the cost of cash withdrawal fee in the card holders local currency is called Dynamic Currency Conversion and it was initially implemented to help consumers better understand the associated costs by presenting the fees in the native currency. However, DCC providers are allowed to add a fee to the exchange rate (6% in this scenario), so the final amount deducted from the your account will nearly always be higher than selecting no conversion and using your own card issuer's rate.

Happy money-saving travels!

Best wishes

TCC

travel money

Disclaimer

We have made every effort to ensure that the information published here is correct and accurate, however you should check and confirm the latest exchange rates with The Currency Club directly prior to making a decision. The information published is general and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available

buy currency

Get the best exchange rate on your travel money delivered directly to your door without any hidden fees with complete transparency

transfer currency

Send money abroad at low cost with our best exchange rates

the currency club social media

Join the conversation and follow
us on social media

the currency club

Blog

A page for us to share with you our thoughts on everything to do with with foreign exchange and much more. From new product launches and widgets to political announcements, market insights and even where to head on your next holiday look no further, you'll find it all here.

travel money buyback

December 2020

Message from the CEO

The Currency Club's mission has always been to reduce the cost of foreign exchange for everyone. We launched our business ten years ago with this intention,and we deliberately focused on the retail travel money sector..

Read More sell your currency
international payments

October 2020

Who says cash is dead?

As a new year begins and the January blues sets in, many will return to their desks attempting to tackle their backlog of emails but at the same time distracted by which destination they should escape to next..

Read More send money abroad
buy travel money online currency exchange uk

December 2020

Buying travel money online...

According to Mintel research conducted earlier this year, the findings show more people are arranging their travel money online, while in-branch or in-store ....

Read More best exchange rates uk