Pulling cash from an ATM in another country can cost more than you expect, because several separate charges can apply at once. Knowing what each one is helps you plan ahead and keep more of your money while traveling. This guide breaks down the common fees and how to limit them.
The fees that can apply
When you withdraw cash abroad, you might face a few different charges. Your own bank may add an out-of-network or international withdrawal fee, the ATM's operator may add its own surcharge, and a foreign transaction fee or currency conversion markup may be applied on top.
Because these can stack, a single withdrawal might carry more than one fee. Reading the fee disclosure for your specific debit or credit card tells you which of these apply to you.
Watch out for 'dynamic currency conversion'
At many foreign ATMs and shops, you'll be asked whether you want to be charged in your home currency or the local currency. Choosing your home currency triggers what's called dynamic currency conversion, which usually adds a markup to the exchange rate.
As a general rule, paying in the local currency and letting your own card handle the conversion tends to be cheaper. The screen wording can be confusing, so look carefully before tapping a button.
Cash advances are different and pricier
If you use a credit card to withdraw cash, that's typically treated as a cash advance — which often carries a separate fee and starts charging interest immediately, with no grace period. That makes credit card ATM withdrawals an expensive way to get cash.
For everyday spending abroad, a card with no foreign transaction fee is usually the better tool, while a debit card or local cash is generally better for ATM withdrawals.
Ways to pay less abroad
Consider using a card or bank account that waives foreign transaction fees, withdraw larger amounts less often to spread out fixed fees, decline dynamic currency conversion, and avoid credit card cash advances. Always confirm the exact fees on your card's official terms before you travel, since they vary by issuer.
Frequently asked questions
Why was I charged twice at a foreign ATM?
Foreign withdrawals can carry multiple separate fees at once — your bank's fee, the ATM operator's surcharge, and a currency conversion charge. Check your card's fee disclosure to see which ones apply to you.
Should I choose my home currency at a foreign ATM?
Usually no. Choosing your home currency triggers dynamic currency conversion, which typically adds a markup. Paying in the local currency and letting your card convert is generally cheaper.
Is using a credit card at a foreign ATM expensive?
Often yes. Credit card ATM withdrawals are usually treated as cash advances, which carry a fee and start charging interest immediately. A no-foreign-fee debit card is generally a better choice for cash.
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Benefit Guardian provides general education, not financial advice. Card terms, rates, and benefits change often — always confirm details on your official card terms before making decisions.