new concern with overseas ATM's

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

A few days ago in Wroclaw, Poland (long known as Breslau in the centuries it belonged to Germany and before that Austria) and ran into something with an ATM that I had not seen before, and in can derail the excellent exchange rate you get with them. It was DCC, or Dynamic Currency conversion, a plague for the last few years with hotel bills, rental cars, airlines, restaurants, etc. but something new for ATM's.

DCC has a contractor convert the local currency to your home currency and submit it in your home currency to your bank card company. There are two problems - 1) they convert it at a very bad rate, and 2) your card company will charge you for conversion anyway, as it is now a foreign usage rather than foreign exchange fee, so you are double charged for the conversion.

The important thing is that for you to get the best rate, the transaction needs to go to your bank in LOCAL currency, NOT in your home currency. If anyone else has a hand in currency conversion, you are getting screwed.

This ATM wanted to know in a message on screen, if ''for your convenience'' I wanted the transaction sent to my bank in dollars rather than zloty, and in fine print mentioned an exchange rate, which was much worse than any I had seen at any exchange house in town. Being familiar with the DCC ripoff, I clicked ''no'' and that was that. I am afraid that many, not knowing about DCC and how it works, would have clicked on dollars without really looking at the exchange rate.

I have not seen this anywhere else in Poland with ATM's, but I am sure it will not take long for it to spread with banks like it has at hotels.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Thanks.

I'll watch out for that.

[Sydney Contributor - Bronze Find all posts View Profile Close Sydney]

Thanks. We'll keep an eye out for that when we're overseas.

[happymum Senior Member Find all posts View Profile Close happymum]

I appreciate the warning. THX!

[Jaquelline Junior Member Find all posts View Profile Close Jaquelline]

If you are going to leave on a vacation out of the country I highly suggest you are fully aware of the fees of the ATM as well as your bank's fees. I remember when I left out of the country and I would always use my card at the store, little did I realize that I was paying the exchange rate plus 3% of the total purchase. The ATM fee was also $5 and 1%, but luckily the ATM's here do not charge any additional exchange fees from my currency to the local currency. It is all included in my fees that I pay to my bank. Still better be careful.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

In some countries, like Greece, the ATM owner charges a fee, but mostly those ATM usage fees are from your own bank for an out of network ATM. In many European countries, the ATM owners usually do not charge a fee.

The exchange rate if done through the usual procedure is at the midmarket interbank rate, the best one you can get. The kicker is that the card processors charge 1% as a fee and many banks pile on with an additional 2%. If you use an ATM with DCC, then you pay a bad exchange rate instead of the midmarket interbank rate, but still have to pay the 1% plus 2% if your bank charges them. I use CapOne, which does not charge the 2% and even absorbs the 1% itself, or as a backup one of two credit union cards that pass through the 1% but do not charge anything additional.

I just hit another ATM in Poland trying to get me to convert to dollars through them, promising in big letters '' NO COMMISSION'' but in small letters showing an exchange rate that was truly awful. I again opted to be charged in zloty to avoid that ripoff.

[jlwquilter Senior Member Find all posts View Profile Close jlwquilter]

Thank you for the head's up! We will be traveling in several countries this summer and I will be a bit more diligent at the ATM to make sure I don't accidentily choose DCC if it spreads to central Europe ATMs.

[MaryH Senior Member Find all posts View Profile Close MaryH]

Carolinian,

Are those ATM attached to a bank or one of those 3rd party ones?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Carolinian,

Are those ATM attached to a bank or one of those 3rd party ones?

These were both attached to a bank. I avoid the 3rd party ones, which are the worst for extra fees.