9/12/2023 0 Comments Wells fargo foreign currency ratesUnsourced material may be challenged and removed. Please help improve this article by adding citations to reliable sources. Independent ATMs stuck in small convenience shops for example may have a usage fee so avoid those.This article needs additional citations for verification. Īnd as stated above, the bank ATMs here do not add a local ATM-usage fee so that doesn't have to be figured into the calculation as long as you stick to ATMs offered by ABN Amro, ING, Rabobank, SNS (if they still have ATMs). If such cards actually do exist, then my $300 would have gotten me €250 which is pretty damned close to the mid-market rate quoted by. But I hear and read of US debit cards which are transaction fee free and which offer a minimal to zero % 'markup' to the Mastercard and Visa wholesale rates. But even in that case, in the example above, my BoA debit card gets me more or less the same result as exchanging cash at Potts or pre-purchasing from Wells Fargo. In my case with my robber baron Bank of America debit card, I believe the fee may be as high as 3% and the flat transaction fee is $5 so that is what I used in the example above. In addition, many banks will add a flat transaction fee for out of network overseas usage. Most banks will add a fee to that Mastercard or Visa wholesale rate of between 1% - 3%. This will not always correspond with the date you actually use the card. Most banks will use either Mastercard's or Visa's 'wholesale' exchange rates for the date upon which your transaction is processed by your bank. How does your home bank arrive at the foreign exchange rate for your overseas debit card usage? It's good to understand so you know what questions to ask and perhaps to shop around for a cheaper debit card. Using ATM here: $300 = €239 (I used as example what it would be with my own Bank of America debit card which is one of the most expensive arounds for out of network overseas use, so many other US debit cards would probably yield €241-€245) This rate is not available for the common consumer unless perhaps you are contemplating converting $1 million+)Įxchange cash in Amsterdam at Pott Change (one of the best currency exchange offices): $300 = €241 (as explained this is usually a mid-market rate or interbank rate which is quoted from the professional foreign currency trading markets. However it can be convenient to have some local currency on hand immediately upon arrival so no harm in paying a buck or two more for that convenience by purchasing a 'starter' amount back home.Īssuming I want to purchase €XXX for $300 (at this very moment since exchange rates are constantly fluctuating) If the local ATM asks if you want the local bank to do the exchange calculation or leave it to your home bank (would you like to be debited in € or $, always choose € and let your home bank make the conversion). In general, a consumer's best option in terms of exchange rate or cash in hand after all costs, is usually to use your home country debit card to withdraw cash locally. The short answer is that unless one is planning on exchanging a lot of money in several transactions (let's say not $300 one time but $300 ten times), then it doesn't make a lot of difference how you do it, unless one has a deep rooted principle to go to any lengths to get the best bargain possible regardless of the amount involved. The comparisons below give a much better picture of what a consumer's options would be. So you are not paying $18 extra for the service because as a consumer with less than $1 million or so to trade, you never have access to the rates quoted "online." If you are just checking currency exchange rates online, like at or similar, then you are most likely seeing a professional foreign currency market trading rate which banks and traders are getting as they make purchase and sale offers of huge sums of foreign currency (usually it's a mid-market rate averaging buy and sell offers or it may be a wholesale rate). If you all think I would be better off using an ATM, do you know which would be the best one to use in the Amsterdam airport (the one with the lowest fees, etc). Just wondering, is this a good deal, or would I be better off getting cash out at an ATM once I arrive in Europe? (I know there will be some fees for using an ATM in Europe too-just wondering overall which option is cheaper).īy the way, I'm posting this on the Netherlands board because my first stop in Europe will be at the Amsterdam airport. If I pay $300 USD to Travelex to get my Euros, they will give me 231 Euros (so I would be paying about $18 extra for the service). I looked into ordering $300 USD in Euros. With that said, I still think I should possibly get some Euros before my trip just in case I need to use cash at all. with my no foreign transaction fees credit card. I will be going to Europe in two months and primarily plan on paying for food, activities, etc.
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