Rip off ATM conversions abroad
Discussion
If any of you have ever wondered about the accuracy of the advice never use ATM conversions, always take money in local currency please read on.
I have a loadable debit card account from an internet only bank that I use when abroad as there are no charges for use abroad abpart from the obvious exchange rates.
I always follow the advice above and you DO have to be very careful with this as they always ask twice & frequently swap the yes/no buttons over for each question to try to get you to click the wrong one.
I checked my maximum atm amount & went to an ATM I found was free to use, the max is £300/transaction £1000/day.
So I put in 340 euro to take out as it is just under £300, as above I declined their exchange & did it in euro.
This particular bank always gives a receipt, so I pocketed this & went on my way, duly (as my bank always does) I got a text saying I had just done a transaction of £296.XX.
When I got back to our appartment I looked at the receipt & it said what my exchange rate would have been had I used their rate.
They would have charged me £336.XX for my £296.XX transaction!!!!!!
That is virtual parity rather than the 1.15 ish I got from my bank.
So, if you ever wondered, now you know that it REALLY is good advice.
I have a loadable debit card account from an internet only bank that I use when abroad as there are no charges for use abroad abpart from the obvious exchange rates.
I always follow the advice above and you DO have to be very careful with this as they always ask twice & frequently swap the yes/no buttons over for each question to try to get you to click the wrong one.
I checked my maximum atm amount & went to an ATM I found was free to use, the max is £300/transaction £1000/day.
So I put in 340 euro to take out as it is just under £300, as above I declined their exchange & did it in euro.
This particular bank always gives a receipt, so I pocketed this & went on my way, duly (as my bank always does) I got a text saying I had just done a transaction of £296.XX.
When I got back to our appartment I looked at the receipt & it said what my exchange rate would have been had I used their rate.
They would have charged me £336.XX for my £296.XX transaction!!!!!!
That is virtual parity rather than the 1.15 ish I got from my bank.
So, if you ever wondered, now you know that it REALLY is good advice.
E-bmw said:
That is what I did previously. But then you get charged again when converting back to remove at home, unless you know you are going to use the same currency again.
You shouldn't have been? There's no fee, it's whatever the prevailing exchange rate is at the time.I think sometimes the fluctuations mean I've technically made a few pence on converting back.
E-bmw said:
What is mean is you get charged at rate when you load and then a rate when you unload which can go either way.
Ah, yes.I find the difference converting then converting back immediately is a few percent, but I rarely do that, and sometimes ive found the rates have moved enough to cancel it out.
The advantage i see is that I can only changevthe amount i intend to use, so if I know I need, say, €340, I can just do €340.
It may not be any better than the rate id get just drawing from £ funds directly, but I like knowing what it is before I do so.
You cannot, and will not, beat the banks.
You might think you are, but you aren’t. They’ll get you with fees or exchange rates when you are travelling.
Personally, if I end up paying something for the ability to use a pre-paid debit card I can top up on my phone while I’m in Europe then I’m not that bothered. At the end of the day it’s just another cost related to the holiday.
You might think you are, but you aren’t. They’ll get you with fees or exchange rates when you are travelling.
Personally, if I end up paying something for the ability to use a pre-paid debit card I can top up on my phone while I’m in Europe then I’m not that bothered. At the end of the day it’s just another cost related to the holiday.
I just use my First Direct debit card. I also try to follow 3 simple rules:
Always use a mainstream but local (i.e. in country) bank ATM
Always withdraw the maximum amount - to minimise the impact of the per transaction charge
Always select local currency
When travelling in Europe, having left over currency isn't a problem. Just put it away with your passports for next time.
Always use a mainstream but local (i.e. in country) bank ATM
Always withdraw the maximum amount - to minimise the impact of the per transaction charge
Always select local currency
When travelling in Europe, having left over currency isn't a problem. Just put it away with your passports for next time.
E-bmw said:
There are basically 2 exchange rates for UK cards abroad visa and Mastercard, Mastercard tends to be fractionally better and that is most debit cards.
This.Always read people claiming their HSBC/Clarity/NatWest etc ..card has the best fx rate when in fact the fx rate is determined by either VISA or MC irrespective of the issuing bank!
Only difference is Revolut which I believe use their own fx rate.
There maybe other bank fee difference for non sterling transaction, but your fx rates are basically either VISA or MC wholesale fx rate.
This is the worlds best, worst kept secret.
There are two issues at play here.
1. The ATM exchange rate.
2. Foreign transaction fees on your card.
The first is relatively simple, always, always, always, always <deep breath> _ALWAYS_ decline the conversion rate when withdrawing money overseas at the cashpoint. Always. Sure, have a look at it for a laugh then hit no/decline and you'll continue with the Mastercard/Visa rate.
The second is a bit harder, most cards will have a foreign transaction fee, this is not a "non sterling" fee although your card may also have that, it's a fee for any transaction not done in the UK regardless of the currency it's in so there is no avoid it by selecting the ridiculous conversion fee. So this fee applies even if the whole transaction is in Pound Sterling. The fees are usually 2-3% of the transaction amount.
The way to avoid the above is to get a card which has no foreign transaction fee. There are a few these days, along with the aforementioned Halfiax Clarity I'd also recommend Starling and Santander Up! accounts as they're debit accounts that you can use to withdraw money from ATMs without the risk of a fee for using credit to withdraw money. The Starling account is free so there's no reason not to have it even if you've already got the Halfiax card (a backup card is never a bad idea).
My last overseas transaction on my Starling card was SG$104, the amount debited from my account was £60.82 so SG$1.71 to the pound, which is pretty much the same on the mastercard web site on the day (25 May 2026).
There are two issues at play here.
1. The ATM exchange rate.
2. Foreign transaction fees on your card.
The first is relatively simple, always, always, always, always <deep breath> _ALWAYS_ decline the conversion rate when withdrawing money overseas at the cashpoint. Always. Sure, have a look at it for a laugh then hit no/decline and you'll continue with the Mastercard/Visa rate.
The second is a bit harder, most cards will have a foreign transaction fee, this is not a "non sterling" fee although your card may also have that, it's a fee for any transaction not done in the UK regardless of the currency it's in so there is no avoid it by selecting the ridiculous conversion fee. So this fee applies even if the whole transaction is in Pound Sterling. The fees are usually 2-3% of the transaction amount.
The way to avoid the above is to get a card which has no foreign transaction fee. There are a few these days, along with the aforementioned Halfiax Clarity I'd also recommend Starling and Santander Up! accounts as they're debit accounts that you can use to withdraw money from ATMs without the risk of a fee for using credit to withdraw money. The Starling account is free so there's no reason not to have it even if you've already got the Halfiax card (a backup card is never a bad idea).
My last overseas transaction on my Starling card was SG$104, the amount debited from my account was £60.82 so SG$1.71 to the pound, which is pretty much the same on the mastercard web site on the day (25 May 2026).
Edited by captain_cynic on Thursday 25th June 11:41
InitialDave said:
It may not be any better than the rate id get just drawing from £ funds directly, but I like knowing what it is before I do so.
Yes, but you only know what it is in local currency, not "real money" unless you then convert it.Similarly though I load what I intend to use in GBP onto the Starling card & every transaction I do, I get a text notification in GBP & can see the balance in GBP at the click of a screen.
You have your way, I have mine you find what works in your own mind & as long as it works for you/me then that is fine.
E-bmw said:
Yes, but you only know what it is in local currency, not "real money" unless you then convert it.
Yes, that's exactly what I said I do.I agree it makes little difference to the effective rate overall, I just like being able to see what rate I'll get before doing anything, and some people may not be aware you can do it that way.
We too use the loaded up Starling card, pays relatively good interest too. 
We tend to have about 4, mostly European trips a year, we may have had a few Euros knocking about from very old holidays, probably less than €20, but the last time we used a cash machine for local currency was Budapest in 2019
You just don't actually need hard cash anywhere anymore, it's only a mater of time before 'lookie lookie' men take contactless.
We tend to have about 4, mostly European trips a year, we may have had a few Euros knocking about from very old holidays, probably less than €20, but the last time we used a cash machine for local currency was Budapest in 2019
You just don't actually need hard cash anywhere anymore, it's only a mater of time before 'lookie lookie' men take contactless.
raceboy said:
You just don't actually need hard cash anywhere anymore, it's only a mater of time before 'lookie lookie' men take contactless.
You don’t “need” it but it’s useful sometimes. I saved over £200 in Naxos earlier this month by paying for accommodation and lunches in cash.In Crete in September I will save a similar amount by paying for accommodation in cash. Always keep cash for tips too.
Gassing Station | Holidays & Travel | Top of Page | What's New | My Stuff