Five $100 cash withdrawals abroad cost $39.25. One of $500 costs $19.85
· 3 min read
Take $100 out of a cash machine abroad five times and it can cost $39.25. Take $500 out once and it costs $19.85. The difference is a flat fee that is charged every time, whatever the amount.
Two charges on every withdrawal
A withdrawal abroad is usually charged for twice: a fixed fee, and an exchange rate a little worse than the mid-market one. This example uses a $5 fee and a rate 3% below mid-market. Both are made up for the arithmetic. Your bank’s figures are in its fee schedule, and the machine’s owner may add a fee of its own.
- $100 from your account: $5 of fee and $2.85 lost to the rate. $7.85, which is 7.85% of the withdrawal.
- $200: $5 and $5.85. $10.85, or 5.43%.
- $500: $5 and $14.85. $19.85, or 3.97%.
The same $500, taken two ways
The rate takes about the same either way. The fee is paid five times or once, and that is the whole difference: $19.40.
That is not an argument for carrying more cash than you are comfortable with. It is what the choice costs, with these example figures. The transfer cost calculator does the same sum for your own fee and the rate you were given.
When the machine offers to convert for you
Some machines offer to charge your account in your home currency at a rate shown on the screen. That rate is set by the machine’s operator and is often well below mid-market. This article works through the same offer at a card terminal. You can check any rate on the screen against the reference rate before you accept it.
What this leaves out
- Your bank’s real fee and margin. Some accounts charge neither.
- The machine owner’s fee. It is usually shown on the screen before you confirm.
- Daily withdrawal limits. One large withdrawal may not be allowed.
- Today’s rate. The calculator compares against a dated reference rate, not a live one.
An estimate from example figures, not financial advice.
