You may be one of them: a third of French people prefer to pay in cash when traveling abroad. Be careful, however: cash withdrawals from ATMs outside the euro zone can cost you very much. Here are our tips for reducing the bill.
The sunny days are approaching and with them, for the lucky ones, the prospect of a change of scenery by leaving for a distant country. Traveling far from home, however, can also be a source of stresslinked to security, health or money.
According to a recent survey (1) commissioned by Wise, 1 in 2 French people are not happy with the prospect of having to pay in a currency other than the euro. And for good reason: almost 80% of people questioned know that they will have to pay additional fees. Those, in particular, who choose to favor cash payments.
If you are one of the third of travelers who prefer to pay for their purchases in cash, here are some tips for limiting fees when withdrawing money from an ATM.
1. Avoid making multiple withdrawals
This is an underlying trend: withdrawing money is increasingly expensive, outside your bank’s network of automatic teller machines (ATMs). But the fees really take off when you make withdrawals in a currency other than the euro.
According to our survey, only 5 banks, out of the 128 considered, do not charge for this operation. We will come back to this. In the others, withdrawing the equivalent of 100 euros costs, on average, 5.74 euros (as of April 25, 2024).
Withdrawal by card abroad (outside the euro zone): prices
There is something else to keep in mind: the vast majority of banks combine fixed fees, charged regardless of the amount withdrawn, and proportional fees. This has a consequence: the lower the withdrawal amount, the more it costs you in proportion.
Before leaving, check your bank’s policy by consulting its tariff brochure. And, if it provides for fixed costs, avoid multiplying withdrawals as much as possible. In summary, it is better to withdraw 200 euros than 4 withdrawals of 50 euros.
2. Avoid ATMs in tourist places
Your bank may not be the only one to benefit from your withdrawal. You may also have to pay fees to the operator who runs the ATM you are going to use.
Attention! These fees are generally higher in distributors close to tourist places, which are often exploited by non-banking players. It’s best to stick to owned distributors [une] bank or, if there are several distributors close to each other, it may be interesting to compare their prices, advises Julie Arnoux, sales manager for France at Wise, in a press release.
The amount of fees charged at ATMs also depends on the country. According to another study (2) carried out by Wise, these costs are the highest in Argentina, Chile and Turkey.
3. Consider the card payment alternative
This is fortunate: the vast majority of cards dealt out in France are international maps, allowing payment worldwide via the Visa or Mastercard acceptance networks. Clear, you can pay for your purchases by card almost anywherewith the same level of security you benefit from in France.
This is an alternative to consider. Indeed, card payments generate fewer fees than cash withdrawals. According to our statement, a payment of the equivalent of 100 euros costs on average 2.90 euros (as of April 25, 2024), compared to 5.74 euros for a withdrawal of the same amount. And you will thus escape the fees charged by ATM operators.
Purchase by card abroad (outside the euro zone): prices
4. Go with a bank card with no withdrawal fees
The most effective solution to avoid withdrawal fees, however, remains to leave with the card of a bank that does not charge for this type of operation. Unfortunately, they are rare: only 5 out of 128, according to our survey. None of the big brands are there. However, some offer paid international options. Check if this is the case with yours.
Travel: is the international option of your bank card profitable?
Otherwise, to save, you will need to open an account with an online bank. The best choice on this criterion is Fortuneo. The two cards distributed by the online bank, Fosfo and Gold Mastercard, offer free payments and withdrawals in foreign currencies, without amount limits. They are also free, with an income condition (1800 euros of monthly net income) for the second. The only other constraint: make at least one payment per month to avoid account maintenance fees.
The map Revolut Standard, free without conditions of income or use, allows you to withdraw the equivalent of 200 euros per month for free. An amount which can go up to 2000 euros per month by opting for one of the paid premium plans.
The map BoursoBank Ultim, free without income conditions, but with a condition of use, offers one free currency withdrawal per month. To benefit from unlimited, you must upgrade to the Ultim Metal plan, 9.90 euros per month. Unlimited also for the premium plans of Hello bank (Prime, 5 euros per month) and N26 (You, 9.90 euros, and Metal, 16.90 euros per month).
The 2 cards dealt by My French Bank, a subsidiary of La Banque Postale, allow you to pay and withdraw anywhere without fees. But they are chargeable (2.90 euros per month for the Original card, 6.90 euros for Ideal).
Finally, Monabanq, the online bank of Crdit Mutuel Alliance Fdrale, allows you to make an infinite number of free foreign currency withdrawals per year, depending on the card chosen (Visa Classic, Premier, Platinum or Infinite). But here too, the plans are chargeable, from 3 to 29 euros per month.
The best bank cards for traveling abroad
(1) Study carried out by Opinionway, from March 27 to 28, 2024, with a sample of 1,015 people, representative of the French population aged 18 and over, constituted according to the quota method, with regard to gender criteria, age, socio-professional category, urban area category and region of residence. The interviews were carried out using a self-administered online questionnaire using the CAWI (Computer Assisted Web Interview) system. (2) Data based on 14.8 million money withdrawals made with a Wise card from ATMs over a 6-month period, from October 2023 to March 2024. These ATMs recorded at least 500 transactions per country during of the 6 month period.