Traveling abroad often comes with a hidden cost: ATM withdrawal fees. But what if there was a way to avoid these fees entirely? This guide explains how you can make smarter financial decisions on your travels.
When you’re traveling abroad, there’s a lot to keep track of: your itinerary, the culture, the language, and, of course, your money. While you’re likely prepared to exchange your currency or use your credit cards, there’s one hidden cost that many travelers overlook, the high fees associated with ATM withdrawals abroad. These fees can quickly add up, eating into your budget without you even realizing it.
Fortunately, there are ways to sidestep these fees and get the best exchange rate possible. With the right tools, you can withdraw money internationally without the hefty charges. In this article, we’ll explain how Wise, Revolut, and Remitly can help you save on international ATM withdrawals and avoid unnecessary bank fees.
The Hidden Costs of Using ATMs Abroad
It’s no secret that withdrawing cash from an ATM abroad can be expensive. On top of the ATM withdrawal fee, which varies from bank to bank, there’s also an exchange rate mark-up and a transaction fee charged by your home bank. This combination can make a simple withdrawal feel like a costly affair.
- ATM Withdrawal Fees: Some ATMs charge a flat fee for using their services, while others charge a percentage of the amount you withdraw.
- Bank Transaction Fees: Your bank may also apply an additional fee for international withdrawals.
- Poor Exchange Rates: Many ATMs offer an unfavorable exchange rate that can result in you receiving less money than you’d expect, even after factoring in the withdrawal fees.
Luckily, there are alternatives that can help you minimize or completely eliminate these fees, and Wise, Revolut, and Remitly are among the top options to consider.
Wise: The User-Friendly Way to Save on ATM Withdrawals
Wise (formerly known as TransferWise) is a popular option for travelers looking to save on international withdrawals. Known for its user-friendly interface and transparent pricing, Wise provides a simple and cost-effective way to manage your finances abroad.
How Wise Works
With Wise, you can open an account and receive a multi-currency debit card. The beauty of this service is that you don’t have to worry about converting your money to local currency before traveling. For example, if you’re headed to Thailand, you can load euros into your Wise account and withdraw Thai baht at the current exchange rate. Wise automatically converts your euros to the local currency when you make a withdrawal, saving you the hassle of dealing with poor exchange rates at ATMs or currency exchange counters.
What Makes Wise Stand Out
- No Monthly Fees: You won’t incur any monthly charges for using Wise’s debit card, making it an affordable option for frequent travelers.
- Low Conversion Fees: Wise charges between 0.5% and 0.7% for currency conversions, which is much lower than what traditional banks typically charge.
- No Extra Fees for Withdrawals: If you withdraw up to €200 a month, you won’t pay any additional fees, just the standard ATM fee.
How Much Does Wise Cost?
With Wise, you pay a low, transparent fee of 0.5% to 0.7% when converting currencies. For example, if you withdraw €200, your fee would be around €1 to €1.40, far less than what you’d pay with a regular bank card. This makes Wise a great option for those who want to withdraw cash abroad without breaking the bank.
Revolut: The Alternative for Global Travelers
Revolut is another popular option for travelers who want to avoid high ATM fees. Much like Wise, Revolut offers a multi-currency debit card that allows you to withdraw cash in local currency without additional charges. However, Revolut’s app is slightly less intuitive compared to Wise, so it may take a little longer to get used to.
How Revolut Works
After signing up for a Revolut account, you can load your card with multiple currencies and withdraw funds from ATMs abroad. Revolut offers fee-free withdrawals up to €200 per month, after which you’ll pay a small percentage fee. The key benefit is that Revolut allows you to lock in exchange rates, ensuring that you know exactly how much you’ll receive when you withdraw.
What Makes Revolut Stand Out
- Fee-Free Withdrawals: Revolut allows you to withdraw up to €200 per month with no extra charges, after which there’s a 2% fee.
- Multi-Currency Account: Revolut lets you hold and manage multiple currencies in your account, making it easier to convert and withdraw money when needed.
- Real-Time Exchange Rates: Revolut provides live exchange rates, giving you more control over how your money is converted abroad.
How Much Does Revolut Cost?
Much like Wise, Revolut doesn’t charge monthly fees for using the card, but there are small charges if you exceed the €200 free withdrawal limit. The fee for currency conversion is also minimal, usually around 0.5%, making it a great alternative for those looking to minimize fees on international withdrawals.
Remitly: A Cash Pickup Option to Avoid ATM Fees
For those who need to withdraw larger sums of cash abroad, Remitly offers an excellent alternative to traditional ATMs. Instead of using your debit card to withdraw money from an ATM, Remitly allows you to transfer money to a local bank and then collect it in cash from a participating bank or partner location.
How Remitly Works
Remitly allows you to send euros to a local bank account in your destination country, where you can pick up the funds in the local currency. This method often works out cheaper than using ATMs, especially for larger withdrawals, as it avoids high ATM fees and unfavorable exchange rates.
What Makes Remitly Stand Out
- Flat Transaction Fee: Remitly charges a flat €2.99 fee per transfer, making it a cost-effective option for larger withdrawals.
- More Control Over Exchange Rates: Remitly gives you a clearer view of the exchange rate upfront, so you can decide whether to go ahead with the transfer.
- Global Coverage: Remitly works in more than 170 countries, including popular travel destinations like Thailand, Vietnam, and the Philippines.
How Much Does Remitly Cost?
Remitly charges a flat €2.99 fee per transfer, regardless of the amount you’re sending. This means that if you transfer a large sum, you’ll pay a very low percentage fee compared to withdrawing the same amount from an ATM.
Smart Ways to Manage Your Money Abroad
When it comes to avoiding high ATM withdrawal fees abroad, Wise, Revolut, and Remitly offer simple, cost-effective solutions. By using these services, you can avoid unnecessary fees, get the best exchange rates, and manage your money more efficiently while traveling. Whether you’re in Thailand, Vietnam, or any other corner of the world, these tools help you maximize your travel budget.
For more travel tips on managing your money abroad, visit The World Trippers’ Travel Tips and start planning your next trip with confidence.
