Some links in this guide may be affiliate links. If you book through one, we may earn a commission at no extra cost to you. How that works
Every method of getting foreign currency stacks fees differently. Here is what each one really costs, fee by fee, on a typical withdrawal.
Getting cash in another country looks like one transaction, but it is usually three or four separate fees stacked on a single receipt. Depending on the machine and the card you use, the total can run from a few dollars to more than a tenth of what you took out. Here is what each method really charges, and where the money goes.
The Four Fees Stacked Into Every Foreign ATM Withdrawal
For most travelers, an ATM abroad is the cheapest way to get local currency, but cheapest still means paying several parties at once. On a typical $100 withdrawal:
- The local ATM owner’s fee. Charged by whoever operates the machine and usually shown on screen before you accept. It varies widely by country and by type of machine.
- Your home bank’s overseas usage fee. Most banks charge a fixed $2.50 to $5.00 for using your ATM card in another country.
- Your home bank’s currency conversion fee. Most banks charge a percentage to convert dollars into local currency, either listed on your statement or buried in the exchange rate they apply. On a $100 withdrawal this runs about $2.00 to $3.00.
- The card network’s fee. Visa and Mastercard add their own foreign currency charge of up to 1 percent on top of the rate.
Add those up and the total is $4.50 to $12.00 on a $100 withdrawal, between 4.5 and 12 percent of what you received. The local machine’s fee comes on top and varies by country: $2.00 to $5.00 is typical in the United States, with Las Vegas machines charging as much as $15.00; Thailand’s ATM fees run about $4.50 to $5.50; in the United Kingdom, many bank-owned machines charge nothing while private machines charge roughly $2.30 to $4.60.
The fixed fee from your bank is what makes small withdrawals poor value. Taking $50 five times can cost more in fees than taking $250 once. These charges also land on your checking account immediately, which stings if a hotel card hold is already sitting on the same account.
Some accounts cut the stack down. Several major U.S. banks have partnerships with European bank chains that let customers use those ATMs without fees, and certain checking accounts waive overseas fees entirely; one large bank, for example, charges $2 plus 3 percent on its standard accounts but nothing on some of its others. Ask your bank which rules apply to your card before you fly.
Travel tip
Because your bank’s overseas fee is usually a fixed amount, small withdrawals are the worst value. Plan to take out a larger amount once instead of visiting an ATM every day.
What an Airport Currency Kiosk Really Charges
Exchange kiosks rarely show a fee line, and that is the problem. Their profit is built into the exchange rate itself: the gap between the rate they offer you and the rate banks get when they exchange large sums with each other. A board that advertises no commission can still be giving you a rate several percent worse than the one your card network would apply, and the network rate is already considered a good one, just not the interbank rate that large traders receive.
To comparison shop, check the kiosk’s rate against the rate your banking or card app shows for the same currency, then decide whether the convenience is worth the spread. If you need cash on arrival, exchanging a small amount at the airport and getting the rest from a bank-run ATM in town keeps the unknown markup to a minimum.
Credit Card Cash Advances: A Fee Plus Interest
Using a credit card at a foreign ATM is not a withdrawal; it is a loan. A cash advance triggers a cash advance fee, and the interest charges can add up quickly. Purchase APRs on credit cards usually run around 20 to 25 percent, and the rate that applies to cash advances appears in your card’s terms. Issuers are required to disclose rates and fees in the account-opening disclosures, so the numbers exist in writing before you ever reach the keypad.
The foreign transaction fee may apply on top of that. Those fees typically range from 1 to 3 percent of the transaction, with some issuers charging as much as 5 percent, and they are built from a network fee of about 1 percent plus an issuer fee of typically 2 percent. On a large advance, those percentages add up before the cash advance fee and interest are even counted.
Exchanging Dollars at Your Bank Before You Leave
Exchanging cash before departure avoids card transaction fees entirely. Banks and currency exchange stores will convert dollars into most major currencies, and paying cash abroad means no foreign transaction fee on those purchases. The tradeoffs are real: cash can be lost or stolen, so carry a backup payment card, and you have to guess your spending before you know it.
A workable split is to use cash for frequent small purchases such as coffee and snacks, and save the credit card for expensive items like restaurant tabs and hotel bills, where the card’s exchange rate works in your favor.
The ‘Pay in Dollars?’ Screen at Foreign ATMs
Many foreign ATMs and card terminals offer to convert the amount into dollars on the spot. This service is known as dynamic currency conversion, and the conversion rate it uses comes from the party offering it rather than from your card. It is almost always worse for you, because your card usually gets a more favorable exchange rate and lower fees than local merchants can offer.
The dollar option is often the default on the screen, so refusing it means using the arrows to switch the charge to the local currency before you confirm. If a receipt shows two totals, one in local currency and one in dollars, ask for the charge to be processed in the local currency instead. We cover how this works for card purchases as well as cash in Paying Abroad: Foreign Transaction Fees, ATM Charges and ‘Pay in Dollars?’.
A Worked Comparison: Getting the Equivalent of $500 Four Ways
Applying the fee structure above to a $500 withdrawal makes the spread visible:
| Method | Itemized fees on $500 | What drives the rest of the cost |
|---|---|---|
| Debit card, typical account | $2.50 to $5.00 fixed bank fee, $10.00 to $15.00 conversion fee (2 to 3 percent), up to $5.00 network fee | The local machine owner’s fee, shown on screen |
| Debit card, no-fee account | $0.00 from your bank | The local machine owner’s fee; often zero at bank-owned machines in the UK |
| Airport exchange kiosk | None itemized | The markup built into the rate, judged only by comparing rates yourself |
| Credit card cash advance | Foreign transaction fee of 1 to 3 percent if your card charges one | The cash advance fee plus interest at your card’s cash advance rate |
Read the table and the pattern is clear. The typical debit withdrawal costs roughly $12.50 to $25.00 in itemized fees before the local machine adds its charge, which can be free at a British bank ATM or $4.50 to $5.50 in Thailand. The no-fee account strips out your bank’s share, leaving only the machine owner’s fee. The kiosk’s cost is invisible, which is exactly why it is hard to cap. The cash advance stacks fees on a loan, which makes it the option to reserve for a genuine emergency.
Two habits keep the cost down whichever route you take. Set up transaction alerts with your bank before you leave so unusual activity reaches you by text or email right away. And if you decide to apply for a card with no foreign transaction fee, remember the process can take six to eight weeks, so start well before your departure date.
Before you go
- A foreign ATM withdrawal typically stacks four fees: a local machine fee, your bank’s fixed $2.50 to $5.00 fee, a 2 to 3 percent conversion fee, and a card network fee of up to 1 percent.
- On a $100 withdrawal those fees total $4.50 to $12.00, between 4.5 and 12 percent, before the local machine adds its own charge.
- Credit card cash advances add a cash advance fee and interest on top of any foreign transaction fee, which typically runs 1 to 3 percent.
- When a foreign ATM or card terminal offers to charge you in dollars, choose the local currency instead; your card’s rate is usually better.
- Applying for a new card with no foreign transaction fee can take six to eight weeks, so start well before your trip.
Travelers also ask
Q: What is the cheapest way to get foreign currency?
A: For most travelers, an ATM withdrawal with a debit card from an account that waives foreign transaction fees costs the least. The only charge left is the local machine owner’s fee, and bank-owned machines in some countries, such as the United Kingdom, often charge nothing.
Q: Should I ever pay in dollars at a foreign ATM or card terminal?
A: Almost never. The conversion rate comes from whoever is offering it and is usually worse than the rate your card network applies, so choose the local currency.
Q: Is it better to exchange dollars before leaving the United States?
A: Exchanging before departure avoids card transaction fees and gives you cash for small purchases, but the money can be lost or stolen. Carry a backup card either way.
Q: How much does a credit card cash advance abroad cost?
A: You pay a cash advance fee plus interest at your card’s cash advance rate, and a foreign transaction fee of typically 1 to 3 percent may apply on top. The exact numbers for your card are in its terms.
Fees, processing times and agency rules change, and airline and hotel policies vary. This guide is general information for travelers in the U.S.; confirm the current rules with the agency, airline or hotel before you travel.
