Aussie holidaymakers are being charged an average of $15 every time they withdraw money from an ATM overseas, according to new data from financial comparison website RateCity.
The data, obtained by Travel at 60, found that customers using these cash machines are being hit with a $5 fee just to access their money. Additionally, they are charged again by the financial institution that owns the international ATM, often starting at $3 per transaction.
The financial comparison website then found currency conversion fees – between 3 to 3.65 per cent – are added to costs after the withdrawal. These charges can add up to as much as $15 for a $200 withdrawal.
“Using your everyday debit card overseas is now easier than ever. In many countries, you can just land at the airport, stick your card in the machine and out comes the cash you need,” Sally Tindall, research director at RateCity told Travel at 60.
“It can also be one of the more expensive ways to access cash because it typically incurs three separate fees: a fee from your bank in Australia, a fee from the local ATM provider you are using, and finally fee for changing your money from Aussie dollars to the local currency. That’s before you look into what exchange rate you get which is often determined by the bank.”
However, some banks offer accounts that don’t have added fees. For example, ING is one of the few intuitions that provides customers access to their everyday account without paying the added charges. Meanwhile, UBank and CitiBank have no currency conversion fees.
It comes after the Australian Competition and Consumer Commission (ACCC) found consumers are charged $2 billion worth of foreign transaction fees every year.