Traveling abroad is exciting, entertaining, and a great opportunity to meet and unwind, but it can also pose financial challenges if you don’t take precautions. Minimizing or eliminating ATM commissions when withdrawing cash is possible if a series of tips are taken into account before starting your vacation outside of Spain.
Tips to avoid commissions abroad
Before you travel, research what ATM networks and ATMs have a presence in the country you will be visiting. Some global networks, such as Visa and Mastercard, offer extensive coverage, which can reduce cash withdrawal fees.
In Spain, there are some financial entities that offer debit and credit cards free of commissions for use abroad. Check with your bank about these options and make sure you understand the applicable terms and conditions.
Many ATMs abroad only accept chip cards. Check if your card has this technology and, if not, request an update before your trip.
When withdrawing cash abroad, you may be offered the option to perform currency conversion at the ATM. Reject this option and opt for the conversion at your Spanish bank. In this way, you will avoid additional commissions and you will be able to obtain a more favorable exchange rate.
In the case of ATM commissions they can be high, especially if you make multiple cash withdrawals in a short period. Plan your expenses and withdraw a sufficient amount to cover your needs during the trip.
Some financial entities have agreements with foreign banks that allow their clients to withdraw cash without additional commissions. Find out about these agreements and look for associated bank ATMs in your destination.
Some countries may also have specific requirements that limit ATM fees for foreign cardholders. Investigate whether there are such regulations in the country you will be visiting and know the commission limits established.
Before traveling, establish a detailed budget and decide which payment method is safe in different situations (cash, credit or debit card). Keeping track of your expenses will help you better control your finances and avoid unpleasant surprises.
Make sure, before starting your trip, to inform your bank about the dates and destination of your trip. By doing so, you prevent the bank from interpreting foreign withdrawals as suspicious activity and blocking your card for security. Some banks offer mobile apps that allow you to locate nearby ATMs without fees and make transactions abroad more secure and convenient.
What do European regulations say about cash withdrawals?
The European Union has established to limit the fees that banks can charge cardholders when withdrawing cash at ATMs in member countries. Under these regulations, fees must be “reasonable” and clearly disclosed to the customer prior to the transaction.
Within the euro zone, fees for cash withdrawals at ATMs are regulated by European regulations. This regulation establishes that commissions cannot exceed 1% of the amount withdrawn or a fixed fee of up to 2 euros. In addition, financial institutions must provide detailed information on these commissions in their rates and contracts.
It is important to mention that financial institutions have the obligation to clearly inform their clients about the commissions they will use when making cash withdrawals at ATMs abroad. This information should be available on their websites, in contracts, and in physical offices.
