What are the Charges for Using Debit Card Abroad?

Though it’s really convenient to use a debit card while traveling overseas, the charges on using it could add up to a large amount if it is used without care. Some of the charges to keep in mind when using a debit card abroad are:

Cash Withdrawal Charges

When you use a foreign ATM to withdraw money you will be charged for it. Listed below are two charges on cash withdrawal.

1. Cash Conversion charge - This is the charge for converting cash in your account into the local currency. Generally it is 2.75% of the amount withdrawn. When the percentage fees are high, the exchange rate will not be favourable for the user.
2. Cash Transaction Charges - This is the charge for using a foreign ATM. It is usually 1.5% of the cash withdrawn, but there is also a minimum charge. The people who are affected most by this charge are who withdraw small amounts of cash frequently. This can be avoided by withdrawing enough cash for your needs at one time.

Purchasing Charges

Apart from the cash withdrawal charges, most debit card providers charge you for using it to make purchases also. The charges in this category are

1. Retail Conversion Charges - This charge is similar to cash conversion charge; it is for converting money in your account into the local currency. The charge is also the same, 2.75% of the amount spent.
2. Retail Transaction Charges - This charge is for the actual purchase which you make. It could be a flat fee or a percentage on the total amount.

Keeping in mind the above charges, the user could use his debit card judicially and thus avoid the unwanted charges. And experience the convenience and ease of using a debit card.