Just wondering what would happen if I get foreign currency from an atm in the UK. (E.g. some Citibank ATMs have dollars and euros ). Importantly choosing the ATM not to use its own conversion but instead be charged in the foreign currency.
Would it count towards the £200 free international withdrawal? Would be nice to clarify this
This is a great question and something I’ve not thought of at all! However, I think you’ll find multi-currency ATMs charge for foreign currencies even if you select to be charged in said foreign currency. If I’m wrong, then that’s amazing as getting foreign currency in cash either from online retailers or from bureau de change branches are usually terrible exchange rates! (Incidentally, if that’s the case, someone point me to an ATM in the UK that dispenses Japanese yen )
Q: Will I be charged a fee for withdrawing euros or US dollars from a Raphaels Bank ATM?
A: Raphaels Bank will not charge a fee for your transaction but your card issuer may. Where possible, the exchange rate and total billing amount will be clearly displayed on screen during the transaction and you will be able to cancel the transaction at this point.
This implies the exchange rate is set by Raphaels, not by Mastercard. If that is the case, expect the exchange rate to be shocking, so they can recoup that ‘no fee’ sleight of hand.
I can’t see how that would work. It’s not like the ATM is abroad and just dispensing local currency, with no exchange to the owning bank. This is a UK bank with an ATM in the UK. They are effectively selling you foreign currency, just like a Travelex booth at the airport. They’ll need to exchange it somewhere along the line, why would they let you choose whether to pay their fee or a cheaper Mastercard fee?
That’s what I meant, it would be very unlikely they’d offer it, which goes back to the original point of this thread: the cash machine would charge you in the local currency (GBP) and dispense foreign currency. So, although Monzo wouldn’t charge a fee, the cash machine provider would either charge a fee or have bad exchange rates or both.
So I sent an email to Raphaels Bank for clarification on the exchange rate used, and this was the response I got today.
If you are using a card issued in the UK to withdraw foreign currency then the ATMs work in a similar way to purchasing currency at a foreign exchange bureau. Once you have placed your card into an ATM and selected the amount that you wish to withdraw then you will be shown a rate on-screen with the choice to either ‘Accept’ or ‘Decline’. If the rate is accepted then the transaction will continue, if the rate is declined then the transaction will be cancelled and your card returned. UK cards are unable to withdraw foreign currency under their card issuers rate in Raphaels Bank ATMs.
The exchange rate is based on the spot rate at the time of transaction and will have a mark-up included within the rate.
I’m going to give it a go myself today, but I am a bit sceptical about their response. I had to highlight that their website shows an ATM at my local Tube station, yet it was taken away about four years ago.