Malaysians should take into account one important aspect of international travel that often goes unnoticed: the hidden costs of ATM withdrawals. Banks and interbank networks typically impose charges for using their ATMs in various destinations.
A recent study by Wise revealed that Malaysians could face exorbitant ATM fees when withdrawing money overseas, which would potentially strain their travel budget and affect their overall experience.
Data shows that Malaysians can incur ATM fees as high as 14.8% per transaction. The breakdown of fees charged per RM1000 in selected destinations varies with Argentina being the highest at 14.8% and Chile being second at 6.33%, other notable destinations that Malaysians need to cognisant of is Thailand at 2.62%, Singapore at 1.41% with UK being the lowest at 0.16%.
Besides ATM fees, Malaysians abroad may face hidden charges in the form of an undisclosed exchange rate markup when using traditional credit or debit cards. These hidden fees often result in many travellers spending more than they expect to.
Lim Paik Wan, Country Manager, Malaysia at Wise, said, “The disparities in ATM fees abroad underscore the importance of strategic financial planning for Malaysians. Withdrawing money overseas can be convenient, but the costs vary significantly. It’s crucial for travellers to know when they’ll be hit with hidden fees and consider cost-effective alternatives while abroad. To stay informed, travellers may look to Wise, which emphasises transparency and fair pricing by utilising the mid-market exchange rate – the one usually reflected on Google – and details all fees for each transaction.”
Tips to Minimise ATM Fees Abroad
If you really need to withdraw money, make sure to “shop around” because if there are several ATMs within a short distance of each other, it may be worth comparing their rates, as fees will vary from bank to bank.
Always Pay in the Local Currency: Travellers who choose to pay in their home currency, such as ringgit, when using a card may be charged between 0.5% to 2% in a dynamic currency conversion fee.
Do Research Before Travelling: Determine the most cost-effective options. Aside from ATM withdrawals, travellers can exchange money before the trip, use debit or credit cards, or go digital with online payment methods. Even so, with debit or credit cards, those abroad should check for any fees that may incur when transacting overseas.
