One of the most frequent doubts consumers have when travelling abroad is to know what fees they may be charged for withdrawing cash at ATMs in the country they are visiting. First of all, it should be made clear that the fees abroad are different from those that would be charged if the cash withdrawal were performed in Spain. Furthermore, the amounts may also vary depending on the card issuer.
In Spain, the company that owns the ATM cannot charge fees directly to the user, but it can charge fees to the financial institution of which the user is a customer. The financial institution may choose to assume it or pass it on to its customer. In any case, a warning must appear on the screen of the ATM used to withdraw money, clearly indicating whether fees are going to be charged and, if so, the amount. In addition, at the same time, the ATM should offer the possibility to refuse the transaction. It is therefore important to always read the messages that appear on the screen.
However, when travelling outside Spain, it is not so easy to know what fees will be charged. These fees may vary depending, for example, on whether the destination is in the euro area or a third country, whether the currency is different from the euro, or whether the card you have is a debit or credit card. Below are some of the fees that may be charged for withdrawing money abroad with a card issued in our country:
- Fee charged by card issuers. Issuers usually charge a fee for withdrawals in other countries. These may vary depending on the currency and the amount withdrawn.
- Commission charged by ATMs that do not belong to our bank (surcharge fees). The bank that owns the ATM may charge people who use it and are not its customers. The fee will vary according to the currency and the amount.
- Exchange rate surcharges. The exchange rates typically used by cards and ATMs also include a risk compensation margin for the card issuer or ATM manager.
It should be noted that the only fee that is not included in the contract signed with the card issuer is the fee charged by other banks for using their ATMs. All other fees that the card issuer may charge its customers abroad should be included in the contract. For this reason, it is important to always check the particular conditions of the card before travelling and consider other alternatives for performing payments in foreign currency. It should also be noted that some banks do not charge fees for using the card abroad and may even have cards with better conditions when used for travelling.
Source of information: Banco de España