What is the best bank for overseas travel? While the summer holidays fighting now in full swing, this time of year is sometimes punctuated by trips abroad. How to avoid bad surprises? Are there differences in tariff rates between institutions?
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“Meilleurebanque.com”, the first comparator bank charges in France, provides part of the answer. The site recalls first of all, two basic rules about the transactions (withdrawals and payments) by credit or debit card abroad: either the client does its operations in a country of the euro zone, and he pays the same fee as if it was in France (nothing on payments, and a few euros on the withdrawals if it exceeds its packages of withdrawals moved free, that is to say, if he withdraws at the atm of a bank that is not his own), either the client is on holiday in a country more distant: it will then charge a fee much more heavy for its card transactions.
The online banks are doing better
“Generally, traditional banks charge variable fees of 2% to 4% of the amount of payment by credit card outside the euro zone. For withdrawals, they add to variable fixed costs 2 to 3 euros per withdrawal,” says Maxime Chipoy, head of the “Meilleurebanque.com”. He continues: “online banks are significantly less expensive: most of them do not charge fixed costs, and variable costs are around 2% of the amounts concerned”.
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“Meilleurebanque.com” compared, on 121 French banks, the cost of € 2000 worth of transactions by bank card outside the euro zone. The differences are very important in function of the institutions. “In traditional banking, the customers will pay on average 90 euros per 1000 euros of withdrawals and 1000 euros ; payments in the online banking and néobanques, only 28,40 euros on average”, explains Maxime Chipoy. Here is the ranking of bank fees to 1000 euros of withdrawals and 1000 euros of payments by CB:
Meilleurebanque.com Meilleurebanque.com Meilleurebanque.com other tips
The site “Meilleurebanque.com” also suggested that, in the case of a journey far away, to change the equivalent of a hundred euros before departure, for example “to pay for a taxi upon arrival”. “Do it for the stations and airports, where the exchange rates are often of little interest, and favour the exchange offices in the city centre,” continues the comparator.
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“On the spot, it is always better to make payments by credit card, withdrawals. But in some countries, merchants may not be equipped with card payment terminals. If you must, then, make withdrawals, make a big cash withdrawal rather than several small ones, and let, if possible, the money not needed safely in the hotel,” concludes the comparator.
