ATM withdrawal - got charged 2% on top of the exchange rate

[invisible999]

I have an account and corresponding ATM card opened at CIMB bank. My primary motivation to open this account was that CIMB does not charge fees for ATM withdrawals in VISA network.

Yesterday had the chance to test it first time - got 2000 yens at Citibank ATM at Tokyo Narita airport. Citibank (and all banks at Japan) does not charge fee for ATM withdrawal and because it was in VISA network, there were no fees from CIMB side, all good.

Now let's look at the exchange rate. I got $23.38 posted in my account for this withdrawal. If you check on VISA Currency Converter page, enter the desired date and currencies, it becomes clear that on that date exchange rate was lower.


Actually, $23.38 corresponds exactly to 2% on top of the exchange rate. So my question is - where this add-on comes on? Does CIMB adds it or VISA does?

BTW, folks, 2% more is not a small amount - if you want to withdraw $3K, it comes as $60 more additional fees. I'd be happier to pay $5 withdrawal fee from a foreign ATM but to have assurance that no extra percentages will add to the exchange rate.

 

[sleeping]

I have an account and corresponding ATM card opened at CIMB bank. My primary motivation to open this account was that CIMB does not charge fees for ATM withdrawals in VISA network.

Yesterday had the chance to test it first time - got 2000 yens at Citibank ATM at Tokyo Narita airport. Citibank (and all banks at Japan) does not charge fee for ATM withdrawal and because it was in VISA network, there were no fees from CIMB side, all good.

Now let's look at the exchange rate. I got $23.38 posted in my account for this withdrawal. If you check on VISA Currency Converter page, enter the desired date and currencies, it becomes clear that on that date exchange rate was lower.


Actually, $23.38 corresponds exactly to 2% on top of the exchange rate. So my question is - where this add-on comes on? Does CIMB adds it or VISA does?

BTW, folks, 2% more is not a small amount - if you want to withdraw $3K, it comes as $60 more additional fees. I'd be happier to pay $5 withdrawal fee from a foreign ATM but to have assurance that no extra percentages will add to the exchange rate.

Hihi...from my experience in the past 7 years using similar card of yours from citibank, the final amount is always a 2% to 2.5% more on the competitve rate. In other words the rate is very similar to the converted rate for credit card charged in foreign currency. ...

 

[ahlee83]

When you do a currency conversion, you should look at the bank's prevailing interest rate rather than visa's.

Your statement should show you the interest rate that was used by cimb during that transaction.

 

[hyperbole]

CIMB doesn't charge for visa network meh. I thought there are no charges only if you withdraw from CIMB ATM

 

[operafreak]

2% is forex fee.
There was no withdrawal fee.

Looks correct.

 

[ossify1]

the CIMB forex can be rather unappetizing. you will realize it if you try to have a Foreign currency Fixed deposit

 

[invisible999]

2% is forex fee.
There was no withdrawal fee.

Looks correct.

I think I made clear that withdrawal fee is not an issue here. Issue here is 2% on top of the published VISA exchange rate.

So I asked questions:

- is this common occurrence? If yes, is there a rule/guideline according to which this rule is implemented?

- is there a bank in Singapore which won't charge 2% on top of the exchange rate?

My motivation to open the CIMB account was to get rid of withdrawal fees, seems added exchange fees are still in place. Just want to know if I can get rid those as well.

 

[hwmook]

I think I made clear that withdrawal fee is not an issue here. Issue here is 2% on top of the published VISA exchange rate.

So I asked questions:

- is this common occurrence? If yes, is there a rule/guideline according to which this rule is implemented?

- is there a bank in Singapore which won't charge 2% on top of the exchange rate?

My motivation to open the CIMB account was to get rid of withdrawal fees, seems added exchange fees are still in place. Just want to know if I can get rid those as well.

Overseas Transaction Fees – ATM Cards | Joogo Travel

Seem like a common occurrence nowadays to have to pay 2% on the withdrawal amount for using cirrus/maestro/visa plus network. I don't think you can avoid it as the charge is from MC/Visa so most if not all banks will charge you for it.

The other way to avoid that is to use the same bank card on the same bank ATM, in this way you will avoid MC/Visa network as it will go though the bank network but the exchange rate will be determined by bank instead of MC/Visa so rate would be poorer.

 

[invisible999]

Seem like a common occurrence nowadays to have to pay 2% on the withdrawal amount for using cirrus/maestro/visa plus network. I don't think you can avoid it as the charge is from MC/Visa so most if not all banks will charge you for it.

The other way to avoid that is to use the same bank card on the same bank ATM, in this way you will avoid MC/Visa network as it will go though the bank network but the exchange rate will be determined by bank instead of MC/Visa so rate would be poorer.

I hate to say this but if this is the case and larger amount of withdrawal of $US/Euro/GBP/JPY is required, I'd rather head towards Change Alley next time...

In couple of month I will need about US $3000 in cash in one foreign country. While I can withdraw that amount locally (local ATMs allow withdrawal of US dollars), I'd rather exchange everything here and avoid fees.

Never thought that I could actually prefer to carry cash instead of plastic, but money talks...

 

[operafreak]

I think I made clear that withdrawal fee is not an issue here. Issue here is 2% on top of the published VISA exchange rate.

So I asked questions:

- is this common occurrence? If yes, is there a rule/guideline according to which this rule is implemented?

- is there a bank in Singapore which won't charge 2% on top of the exchange rate?

My motivation to open the CIMB account was to get rid of withdrawal fees, seems added exchange fees are still in place. Just want to know if I can get rid those as well.

I have made it clear it is not a withdrawal fee.

Forex fee and withdrawal fee are different.

Just hunt for a card with no forex fee which is not available in Sg AFAIK.

 

[invisible999]

Just hunt for a card with no forex fee which is not available in Sg AFAIK.

Seems the case. Would be happy to be proven otherwise...

 

[lcpteck]

That is correct, there is no such card issued here.

 

[invisible999]

That is correct, there is no such card issued here.

So you confirm that for every transaction with a foreign currency, be it ATM transaction (cash withdrawal) or credit card transaction, 2%-3.5% is added on the top of the forex rate, right?

If above is the case, I really think that cash starts to make sense at least in certain cases. One of them I outlined previously - need appx US $3K in cash while travelling in another country.

Also seems that I'd rather bite the bullet in terms of cable fees and once-twice a year I will wire several $K to my US current account and use that ATM card when travelling - my US bank does not charge fees neither on top of the forex no for the foreign ATM usage and actually reimburses ATMs fees imposed by other banks.