What do you have to take into account when withdrawing money or paying abroad?

What do you have to take into account when withdrawing money or paying abroad?

When we travel abroad we have to take into account many aspects, one of them is the payment method since we have to take into account several aspects when withdrawing money or paying abroad with a card , since it has associated a series of commissions and, We will have to include them in our budget when traveling, especially if we travel outside the Euro Zone. In the next post we will comment on what to keep in mind when taking money or paying abroad.

Pay with a card abroad

When we are going to pay by card abroad we have to take into account several aspects, which, if we disconnect could play a trick on us. The first thing we need to know is whether or not our card charges commissions to be paid abroad, we will also have to know the exchange rate that will apply if we are in a country outside the Euro Zone, the commission for currency exchange and the date on which the operation is performed.

Commission for paying with the card abroad

If we are in a country of the Euro Zone , we will not have to worry about this aspect, since normally banks do not apply this commission when we pay a member country of the Euro Zone

If we travel to a place outside the euro zone , for example, we go to London, we will have to know if our card charges us a commission to pay with the card . Here the commission for the exchange of currency will be associated

Exchange rate

The first aspect to keep in mind is to know what type of change our card applies . The cards are Visa or MasterCard and the exchange rate of the card will be applied. This type of change varies from day to day and some may be better or worse for us. For example, on September 11, 2015:

  • Visa 1 pound = € 1.3813
  • Mastercard 1 Pound: € 1.3617

To get an idea of ​​what type of change is better, we can compare it with the exchange rate published by the Bank of Spain. On Friday, September 11, the exchange rate of euros to pounds published by the BdE is € 0.73060 = 1 Pound (1 Pound = € 1.3687)

Commission for currency exchange

The third aspect that we will have to take into account is the commission for currency exchange . This commission will be applied to the amount already exchanged, that is, to the amount resulting from exchanging euros per pound. A percentage of the amount is usually applied, although it is not usual for some banks to have a fixed commission established.

  • Banco Mediolanum: 1.00% on the amount
  • ING Direct : 3.00% with a minimum of € 2
  • Banco Santander : 2.50% with a minimum of € 1
  • BBVA : 3.00% with a minimum of € 6
  • Bankia : 2.00% on the amount

Value date or accounting date

Finally, we will have to know when our bank makes the operation effective, if at the time we make the purchase or after a few days to post it, ie the value date or the accounting date:

  • Value date : the date on which the operation is performed
  • Accounting date : when the transaction is posted to the bank

Let’s imagine that the operation was carried out on Wednesday, September 9 and we have not had the operation in our bank until September 11. The exchange rate as of September 9 was:

  • Visa: 1 Pound = € 1.3817
  • Mastercad: 1 Pound = € 1.3739
  • Bank of Spain: 1 Pound = € 1.3791

Therefore, although the variation is not very large in terms of exchange rates, it is important to know this aspect to be clear about the commission that will be applied to us.

Take money abroad

One of the options we have abroad to pay is to withdraw money at ATMs, we will have to take into account several aspects such as, for example, the commission that our bank will apply to take out money, the exchange rate and the commission if is about a currency other than the euro

Commission for taking money money in a cashier

Regardless of the country in which we are, that is, inside or outside the euro zone, our bank will apply a commission for withdrawing money from the ATM , it is a commission that is applied as a percentage and is usually for 4.5 % with a minimum of between 3 and 4 €, so it would be to look for a card that does not charge commissions for taking money from abroad. For example, the Banco Mediolanum debit card. The commissions of some banks are:

  • Mediolanum Bank: € 0
  • ING Direct: € 2
  • Banco Santander: 4.50% with a minimum of € 3.50
  • BBVA: 4.50% with a minimum of € 3.50
  • Bankia: 4.00% with a minimum of € 4.00

Exchange rate

As we have commented on what happens when paying with the card abroad, the same thing happens when we are going to withdraw money from the ATM, although we must pay special attention since the ATM can propose an exchange rate that It is usually worse than the one our bank would apply to us. When it comes to withdrawing money at an ATM in another currency, it is likely that we will find this message:

The ATM is offering us an exchange rate of 1 Pound = € 1.3551, if we gave ” Continue with conversion “, this would be the exchange rate that would apply to us and then the commission for currency exchange that our Bank. Normally this type of change is usually harmful for us and we would like to carry out the transaction with the exchange rate of our card, so it is advisable to give “Continue without conversion”

Commission for currency exchange

This commission will be the same as if we paid with the card in an establishment, but it can happen that our bank does apply commission for foreign exchange at the time of paying by card but not when withdrawing money from an ATM, such as This is the case of Banco Mediolanum.

Surcharge fee

It is a commission that has a fixed amount and that is charged simply for the use of the ATM, in Spain it would be equivalent to the commission of the two euros applied by Caixabank and applied by BBVA and Banco Santander. Therefore, the surchage fee is a fixed amount that the ATM will apply to us. He will have to notify us of the collection of this commission and it will be our decision to continue with the operation or cancel it.

Difference between taking money with a card without commissions and one with commissions

Let’s see, through an example, how much we would have to pay to get 500 pounds at an ATM and pay € 500 in an establishment with a card without fees (Banco Mediolanum) and one with commissions (ING Direc)

Take out money at a cashier

Banco Mediolanum would charge us to take out 500 pounds: 690.65 €

  • The commission for withdrawing money from the ATM: € 0
  • It would apply the Visa exchange rate, which is at 1.3813
  • There is no commission for currency exchange when withdrawing money from the ATM, it will be applied when we make a purchase with your card

ING Direct would charge us to take out 500 pounds: 713.17 €

  • The commission for withdrawing money from the ATM: € 2
  • It would apply the Visa exchange rate, which is at 1.3813
  • Commission for currency exchange: € 20.72

 

Pay in an establishment

Banco Mediolanum would charge us to pay 500 pounds: 695.65 €

  • Commission for currency exchange: 1% on the purchase (€ 5)
  • It would apply the Visa exchange rate, which is at 1.3813

ING Direct would charge us to pay 500 pounds: 711.17 €

  • Commission for the exchange of currency: 3% on the purchase (€ 20.72)
  • It would apply the VISA exchange rate that is at € 1.3813

Therefore, when traveling abroad you must be clear about these concepts: what type of change is applied, the commissions for withdrawing money abroad, if the exchange rate of the ATM is better than that of our bank or not. , to know if our card allows you to withdraw money abroad for free. Do you take into account all these aspects when it comes to withdrawing money or paying abroad?

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