How to avoid ATM fees abroad

By the Viamo editorial team · Editor Terje Moy · Last updated July 2026 · 6 min read

Withdrawing cash abroad can cost anywhere from nothing to 10% of the amount you take out, and most of that gap comes down to which card you use and which button you press at the machine. There are three separate charges stacked on top of each other, and avoiding all three is straightforward once you know what to look for.

The three fees stacked on top of each other

Every foreign withdrawal can carry up to three separate charges, and it helps to think of them as three different pockets you might be paying into:

• The ATM operator's fee. A flat charge set by whoever owns the machine — a bank, a standalone cash-machine company, or a currency-exchange chain. It's usually disclosed on screen before you confirm the withdrawal, and it varies enormously: bank-owned machines in most countries charge little or nothing to foreign cards, while independent machines in airports, train stations and tourist strips often charge the most.
• Your own bank's foreign transaction or withdrawal fee. A separate charge from your home bank or card issuer, typically a flat fee plus a percentage, deducted after the fact and not shown at the machine.
• The exchange rate margin. Your bank converts the local currency to your home currency at a rate that includes a markup over the wholesale rate. This one is invisible unless you compare it against the real mid-market rate.

A single withdrawal can be hit by all three at once — an operator fee on screen, a foreign transaction fee on your statement, and a marked-up exchange rate baked into the number you never see quoted anywhere.

Fee-free cards: the single biggest lever

The most effective fix is to travel with a card — usually a specialist travel debit card or an online/digital bank account — that charges no foreign transaction fee and reimburses or waives ATM operator fees, at least up to a monthly limit. Several UK, European and US banks now offer this as standard on at least one account tier, and it eliminates the second fee entirely and often refunds the first. If your everyday bank card charges 2–3% plus a flat fee on every foreign withdrawal, getting a fee-free card before a trip is usually the single change that saves the most money, especially on a long trip with many withdrawals.

It's worth opening and testing a fee-free card at a home cash machine before you travel, and carrying it alongside — not instead of — your normal card, in case one is lost, blocked for suspected fraud, or simply not accepted somewhere. Sorting this out ahead of time fits naturally alongside the other preparation covered in our guide to planning an overland trip.

Always choose to pay in the local currency

The single most damaging on-screen choice at a foreign ATM is being asked "Would you like to be charged in [your home currency] or [local currency]?" and choosing your home currency. This sounds convenient — you see a familiar number — but it means the machine's operator, not your own bank, sets the exchange rate, and that rate is reliably worse. This is called dynamic currency conversion, and our full guide to DCC covers exactly why it costs more and how to decline it. The short version: always choose to be charged in the local currency, even if the screen makes the home-currency option look like the default or the "better deal."

Withdraw larger amounts, less often

Flat operator fees don't scale with the amount withdrawn, so taking out £200 once costs the same flat fee as taking out £50 four times — but the second approach means you've paid that fee four times over. Where it's safe to carry more cash, withdrawing a larger sum less frequently cuts the number of flat fees you pay across a trip. The obvious limit is safety and daily withdrawal caps set by your card issuer or the local machine, so balance this against not wanting to carry more cash than you're comfortable with in any one place — see our guide to cash or card abroad for a fuller sense of how much to carry.

Choosing which machines to use

Not all ATMs are equal, and a bit of selectiveness saves money:

• Bank-branded machines attached to or near an actual bank branch usually charge lower fees than standalone machines, and are generally safer and better maintained.
• Airport and train-station ATMs, along with machines in tourist-heavy strips, are disproportionately likely to be independently operated with high flat fees and aggressive DCC prompts — withdraw only what you need to get into town, then find a better machine.
• Independent operators (often branded in gold or with a distinctive logo, common across Europe) are the ones most associated with high fees and DCC. If a machine's branding is unfamiliar rather than a recognisable national bank, treat it with caution.

Cards vs pre-paid currency cards

Multi-currency prepaid travel cards, loaded with foreign currency in advance at a locked-in rate, can also avoid ATM and conversion fees, and some people prefer the spending-cap discipline they offer. The trade-off is that the exchange rate is fixed at the point you load the card, so if rates move in your favour after you've loaded it, you don't benefit — and if the card or app has an issue abroad, a mainstream fee-free debit card is generally easier to solve problems with. For most travellers, a good fee-free debit card is simpler and just as cheap. Whichever you choose, an eSIM set up before you fly means you can check your balance or contact your bank the moment you land, without hunting for WiFi first.

What to do before you leave home

• Tell your bank you're travelling if it still asks for this (many modern banks no longer require it, but it avoids a blocked card from a fraud flag).
• Carry at least two working cards from different providers, kept in separate places.
• Check your daily withdrawal limit and whether it can be raised temporarily for the trip.
• Know your PIN by number, not by the shape it makes on a home keypad — keypad layouts vary abroad.

Frequently asked questions

Is it ever better to exchange cash than use an ATM?

Rarely. Airport and street currency exchange bureaux typically build in a wider margin than ATM withdrawals on a fee-free card, even before their own commission. ATMs generally offer the best available rate for cash unless you have a specific reason to exchange in advance, such as arriving somewhere with very limited card or ATM access.

Do all ATMs abroad show their fee before I confirm?

Most do, particularly independent operators, since disclosure is required in many countries. Your own bank's separate fee, however, is rarely shown at the machine — it appears only on your statement afterwards, which is another reason to know your card's fee structure before you travel.

Can I avoid ATM fees entirely by paying with card everywhere instead?

In many countries, yes, largely — see our guide to cash or card abroad for where contactless and card payments cover most spending versus where cash is still essential. Even card-friendly destinations usually need some cash for markets, small vendors, tips or rural areas.

Does a fee-free card also help with card purchases, not just ATMs?

Yes — the same foreign transaction fee that applies to ATM withdrawals on a standard card also applies to card purchases abroad, so a fee-free card saves money on every purchase too, not only on cash withdrawals.