By  Updated on Fri Aug 22, 2014

Foreign ATM Fee Comparison at the Top 10 U.S. Banks: Summer 2014

Consumers need cash. Whether your credit card gets declined or you realize the restaurant you walked into doesn’t accept credit cards, even the most well-prepared traveler can run into issues where they need cash — quickly! This is a feeling that is all too common for those who have traveled abroad, and since it’s not a fee that you have to pay for on the regular, many banking consumers accept it without much of a fight. This might change after you realize how expensive it is to withdraw money at a foreign ATM. Compare the foreign ATM fee and foreign transaction fees at the top 10 banks in America.

Foreign ATM Fee Comparison at the Top 10 U.S. Banks: Summer 2014

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Foreign ATM fees

Unlike out-of-network ATM transactions, foreign ATM withdrawals usually incur two different charges — the foreign ATM fee and the foreign transaction fee. You are in for a big surprise if you mistakenly believe that there is only a flat fee involved with foreign ATM transactions. It is the norm for most banks to charge between one to three percent of a total transaction.

Here are the foreign ATM fee and foreign transaction fee charged by the 10 largest U.S. banks:

Bank Foreign ATM Fee Foreign ATM Transaction Fee Locations
Bank of America $5 3% Find branches near you
Wells Fargo $5 3% Find branches near you
Chase $5 3% Find branches near you
Citibank $2.50 3% Find branches near you
U.S. Bank $2.50 2% in USD or 3% in international currency Find branches near you
PNC Bank $5 3% Find branches near you
Capital One $2 3% Find branches near you
TD Bank $3 None Find branches near you
BB&T $5 3% Find branches near you
SunTrust Bank $5 3% Find branches near you

These costs are reflective of withdrawals at out-of-network foreign ATMs for local currency. It is not necessarily the cost of transfers and inquiries performed at the ATM machines, which may be less than the fee posted above, or it could also be free. For example, at Chase Bank, the cost of withdrawal at a foreign ATM machine is $5 per transaction, while any transfers or inquiries will cost about $2.

Keep in mind that in addition to the fees that your banks may charge, you may also have to pay for any fee charged by the foreign ATM operator when you withdraw cash.

Foreign ATM fee comparison

According to a July banking analysis by MyBankTracker.com, the average cost of foreign ATM fees at the 10 biggest banks in America was $4 — that’s 30 cents more from last year’s average of $3.70. Currently, the highest foreign withdrawal fee is $5. On the other hand, Capital One is only charging customers $2 — which is the lowest fee charged by a bank for this type of transaction.

At Citibank, U.S. Bank, Capital One and TD Bank, the cost of withdrawing money at an out-of-network ATM can cost just as much as a foreign ATM withdrawal. In general, banks charge about double for foreign ATM transactions versus out-of-network ATMs.

Foreign transaction fee comparison

Just as you are charged a fee for exchanging money when traveling internationally, the same thing is applied to transactions at foreign ATM machines.

At the top 10 banks in America, the foreign transaction fee is three percent — except at TD Bank. In fact, TD Bank does not charge a foreign transaction fee on the total amount that is withdrawn. You can expect to pay a flat fee of $3 for any out-of-network and foreign ATM transactions at TD Bank.

U.S. dollar vs. foreign currency

You might remember being asked, “Would you like that to be charged in U.S. dollars or in Euros (or whichever local currency of the place you’re visiting)?” Many people don’t realize the difference between the two and waive off the question as if it doesn’t matter. You might be making a costly mistake by doing this.

Note that there can be a difference in the cost of the transaction depending on if the payment is processed in U.S. versus in foreign currency. For example, in addition to the foreign ATM fee of $2.50, U.S. Bank will charge two percent on the total amount of the transaction for payments processed in dollars, while a three percent charge will be applied for processing it in international currency.

Exchange rate

When you make transactions in a foreign currency, you need to think about the exchange rate. The exchange rate depends on many different factors, such as the type of transaction, dollar amount, type of currency, date and time, and whether the transaction is either a debit or credit. Also, the rate is constantly fluctuating.

Ways to avoid foreign ATM fees

ATM fees have become the deciding factor for customers who are shopping around for a bank. The general consensus is that ATM fees should go away — along with the plethora of possible fees connected to a bank account. Banks know how important fees are — or the lack of them — in gaining customers. Although they’re not willing to provide free out-of-network and foreign ATMs to all of its customers, they have found a way to offer the service at no charge to some.

For example, if you travel abroad frequently, it would be useful to open an account with a one of the biggest banks in America. Major U.S. banks usually have global branches all over the world that can get you access to these services without having to pay for them. These banks are more likely to partner with banks from other countries. You’ll be able to withdraw cash from other global banks and won’t be charged a fee. It’s important to know in advance where to find bank branches overseas.

Signing up for a no-fee ATM card will give you the freedom to withdraw money without having to worry about racking up fees. Keep in mind that you don’t necessarily have to change banks to avoid ATM fees overseas, as many banks will waive them for certain checking account holders. The foreign transaction fee won’t be waived, however. To avoid fees completely, you should consider getting a credit card that has no foreign transaction fee.

Before you leave

Make sure your bank and other financial institutions know that you will be traveling overseas. Even the slightest deviation from your normal spending pattern can raise a red flag for the fraud department, which may result in your account being frozen or your credit card denied.

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Post a Comment

  • Theresa Kim

    How do you avoid foreign ATM and transaction fee when traveling abroad? Share your answers here!

  • James

    Banks are a rip off! I only do business with a credit union. Lower fees while traveling outside the USA. Some even waive ATM fees.

    • Theresa Kim

      In addition to lower fees, credit unions typically pay higher interest rates on deposits compared to big banks. Definitely a high price to pay for the convenience of more branches.

      Thank you for sharing!