How to Avoid ATM Fees and Bad Exchange Rates Abroad

You land in a new country, need some local cash and walk up to the first ATM you see. The screen offers to charge you in your own currency, which sounds helpful. You accept, take your money and only discover the damage a few days later: a surcharge from the machine, a fee from your bank and an exchange rate that was quietly worse than it should have been.

The good news is that ATM costs abroad are easy to reduce once you know where they come from. This guide explains the layers of cost, gives you eight simple rules and shows how to choose the right card and account for travel or for life abroad. If you also receive money from clients in other countries, you may like our guide to hidden currency conversion fees when getting paid.

The short answer

Follow these rules and you will avoid most of the cost:

1. Always decline the machine’s offer to convert and choose the local currency.
2. Use ATMs that belong to real banks, not independent machines in tourist areas.
3. Use a card or account with low or no foreign fees.
4. Withdraw less often, in larger amounts, within safety limits.
5. Avoid airport and street exchange counters.
6. Know your cost by comparing with the real exchange rate.
7. Plan ahead with the right cards and limits.
8. Protect yourself from fraud at the machine.

The four layers of cost

When you use an ATM abroad, you can face up to four separate costs:

Layer	What it is	Who charges it
1. ATM operator fee	A flat or percentage fee for using the machine	The owner of the ATM
2. Your bank’s fee	A withdrawal fee, cash fee or non-network fee	Your own bank or card issuer
3. Foreign transaction fee	A percentage for spending or withdrawing in another currency	Your own bank or card issuer
4. Exchange rate margin or DCC markup	A worse rate than the market rate, especially if you accept the machine’s conversion	The card network, your bank, or the ATM operator

These layers can stack, which is why some withdrawals cost far more than expected. One travel guide estimates that a small withdrawal with the wrong card and a conversion accepted at the machine can lose 6% to 10% of the amount, while a bank ATM with conversion declined and a no-fee card can cost almost nothing. Another calculates that four withdrawals at independent machines with conversion accepted could cost about four times what the same cash would at bank ATMs with conversion declined (the figures are illustrations from the guide, not guarantees). For how margins work, see our explanation of how exchange rate margins work.

Rule 1: Always decline the conversion (DCC)

This is the single most valuable rule. Many ATMs and card terminals offer to charge you in your home currency instead of the local one. It is called dynamic currency conversion (DCC). It looks convenient, but the conversion is done by the machine’s operator at its own rate, which is normally much worse than the rate your bank or card network would apply.

• One 2026 guide says that ATM operators typically mark up the conversion by about 3% to 8%, often more than the machine’s posted fee.
• Another suggests that if the conversion offered is more than around 3% worse than the current market rate, you should decline it.
• When the screen asks you to choose between the local currency and your own, choose the local currency, or choose “continue without conversion” or “withdraw in local currency”.
• Some machines hide the local-currency option behind another prompt, so read the screen carefully and decline as many times as needed.
• Check the receipt: it should show the amount in the local currency.

You may still see an ATM operator fee, but that is a much smaller problem than accepting a poor conversion rate on top of it.

Rule 2: Use bank-owned ATMs

Not all ATMs are equal. Independent operators, such as Euronet or Travelex, are often found in airports, train stations and major tourist squares and tend to have higher fees and rates. One guide notes that they are common in tourist areas, especially in places such as Spain, Greece and Eastern Europe, and that fixed operator fees equivalent to roughly £4 to £6 per transaction are normal.

How to spot a better machine:

• It carries the logo of a recognisable bank and is located in or attached to a branch.
• It clearly lets you choose the local currency.
• The fee, if any, is shown before you confirm, and you can cancel.
• If the fee is too high, cancel and find another ATM. Standalone machines are often near bank-owned ones.

A caveat: some independent machines allow larger withdrawals than bank ATMs in a single transaction, which can reduce the number of fixed fees you pay. A traveller in Portugal, for example, notes that bank ATMs often cap withdrawals at around €200 while independent machines allow more. If you use one, decline the conversion, check the fee on screen and compare the total with using a bank ATM more than once. Limits vary by country and bank.

Rule 3: Use the right card or account

Your own bank’s fees matter as much as the machine’s. Look for:

• No foreign transaction fee.
• Fee-free or low-fee ATM withdrawals abroad, or an allowance each month.
• No fee for cash withdrawals beyond the machine’s own charge, or a card that reimburses ATM fees.
• Mid-market or near-mid-market exchange rates.
• Reasonable daily withdrawal limits.

Some travel-focused cards charge no foreign transaction fee and provide fee-free ATM allowances, which can be much cheaper than a traditional bank debit card. Check each provider’s current terms, because allowances and weekend markups differ by plan and country. For a comparison of options, see our guide to debit cards for international travel.

If you live abroad or move often, a multi-currency account lets you hold the currency you need and spend it directly, which avoids conversion at the machine. Your traditional bank may be fine for local life, but may charge more for international use. Read neobank vs traditional bank to see the trade-offs.

Credit cards for cash withdrawals are usually a poor choice: they often charge a cash advance fee and start charging interest immediately. One guide gives an example in which a credit card cash advance added a 3% fee plus immediate interest at a high annual rate on top of the machine’s fees.

Rule 4: Withdraw less often, in larger amounts

Fixed fees hurt small withdrawals the most, because a fixed fee is a larger share of a small amount. A common recommendation is to withdraw a larger amount per visit, for example the equivalent of €200 to €300 in Europe, instead of small daily amounts, rather than making several tiny withdrawals.

An example (illustration only)

Imagine a flat 5 USD fee per withdrawal at the machine, plus a 5 USD fee from your own bank.

• Four withdrawals of 50 USD each: 4 × 10 = 40 USD in fixed fees, on 200 USD of cash (20%).
• One withdrawal of 200 USD: 10 USD in fixed fees (5%).

The numbers are made up to show how fixed fees add up. Check your own fees.

Balance this with safety. Do not carry more cash than you need, avoid withdrawing large amounts in unsafe areas and use machines inside bank lobbies where possible.

Rule 5: Avoid airport and street exchange counters

Currency exchange counters in airports, stations and tourist areas are among the most expensive places to convert, with rates that are often far from the market rate and extra commissions. Better habits:

• Pay by card in the local currency wherever cards are accepted.
• Withdraw from a bank ATM when you need cash.
• Bring a small amount of local currency if you can arrange it at a fair rate before you travel, or exchange a small amount for the first taxi and transport.
• Never exchange money on the street.

Rule 6: Know your cost

You cannot control what you do not measure. Check:

1. The market rate for your currency pair, from a currency converter.
2. The rate and fees on your statement after a withdrawal.
3. The difference, which is your real cost.

Some people also check card network rate tools to compare. Our currency conversion cost calculator helps you turn a rate and a fee into a total cost.

Rule 7: Plan ahead

Before you travel or move:

• Take two cards from different providers, in case one is blocked or lost.
• Check your daily withdrawal and spending limits and ask for changes before you need them.
• Check which fees apply to cash withdrawals and foreign currency.
• Keep your PIN and card details safe, and know how to freeze a card in the app.
• Carry a small amount of cash for emergencies, kept separate from your cards.
• Download your bank’s app and enable alerts.

Rule 8: Protect yourself from fraud

• Use ATMs inside bank branches or lobbies where possible, ideally during opening hours.
• Look at the machine. If the card slot or keypad looks loose or unusual, do not use it.
• Cover the keypad when you enter your PIN.
• Do not accept help from strangers, and do not let anyone distract you.
• Check your account soon after a withdrawal and report anything strange immediately.
• Take your card and cash and receipt before you leave.
• Use contactless or card payments rather than cash when it is safe and accepted.

Cash vs card vs transfers

Cash is useful, but it is not always the cheapest or safest way to pay.

Method	Good for	Watch out for
Card in local currency	Most daily spending	Foreign transaction fees; DCC at checkout
ATM cash	Places where cards are not accepted	ATM fees; DCC; withdrawal limits
Bank transfer or money transfer	Rent, deposits and large payments	Fees and margins; see the cheapest ways to send money abroad
Multi-currency card or account	Frequent travel and living abroad	Plan limits and weekend markups

Add a line for ATM and currency costs to your monthly budget for digital nomads so that they do not come as a surprise.

A 30-second checklist at the ATM

1. Is it a real bank ATM or an independent machine?
2. Do you see the fee on screen, and is it acceptable? If not, cancel.
3. Do you have a card with low foreign fees?
4. When asked, did you decline conversion and choose the local currency?
5. Is the amount you are withdrawing worth the fixed fees?
6. Is the surroundings safe, and is the machine untampered?
7. Did you check the receipt shows the local currency?

Situations and best moves

Situation	Best move
Landing at an airport with no local cash	Pay a small first expense by card, or use a bank ATM in the arrivals hall if available
Machine offers “pay in your currency”	Decline and choose local currency
Only an independent machine nearby	Check the fee on screen, decline conversion, withdraw a larger amount once, or walk to a bank ATM
You must pay rent or a deposit in cash	Check whether a transfer is possible instead
You live abroad and use the machine often	Use a card or account with low ATM costs and a high monthly allowance
Your card is blocked	Use your backup card and contact the issuer

Common mistakes to avoid

• Accepting the machine’s conversion.
• Using the first ATM you see.
• Making many small withdrawals.
• Using a credit card for cash.
• Relying on one card.
• Exchanging money at airports or on the street.
• Not checking your statement after withdrawals.
• Not setting limits and security alerts.
• Ignoring the receipt.
• Carrying too much cash.

Frequently asked questions

How do I avoid ATM fees abroad?

Use bank-owned ATMs, decline conversion, choose a card with low or no foreign fees and withdraw larger amounts less often.

Should I accept the ATM’s offer to convert to my currency?

No. Choose the local currency and let your bank or card network convert, because the machine’s rate is usually worse.

What is dynamic currency conversion?

A service that converts your withdrawal or payment into your home currency at the machine’s or merchant’s own rate, usually with a high markup.

Are Euronet ATMs bad?

Independent operators like Euronet are often found in tourist areas and are commonly associated with higher fees and poor conversion offers. They may be useful occasionally, if you decline the conversion and check the fee, but bank ATMs are usually cheaper.

Is it better to withdraw cash or pay by card abroad?

In most places paying by card in the local currency is cheaper and safer, and cash is useful where cards are not accepted.

Which card is best for ATM withdrawals abroad?

One with no foreign transaction fee, low or no ATM charges and a good exchange rate. Check the terms for the countries where you will use it.

Is it safe to use ATMs abroad?

Generally yes, if you use machines in bank branches, cover your PIN, check the machine for tampering and monitor your account.

Final thoughts

ATM costs abroad are not unavoidable. Decline the conversion, use bank-owned machines, choose the right card, withdraw sensibly and check your statements. A few seconds of care at the machine can save you a meaningful amount each year, especially if you travel often or live abroad.

This article is general information, not financial advice. Fees and rules change and vary by country, operator and card. Information reviewed October 7, 2026.