Bank Teller Cash Withdrawal: A Debit Card Pro-Tip for International Travelers & Expats

If you're a savvy traveler, you already know the importance of banking & purchasing securely when vacationing or living in a foreign country. This means using cash more often while minimizing the use of credit and debit cards. After many years of international travel, I (accidentally) stumbled upon a method I consider to be the safest & most cost effective for withdrawing cash internationally. Let me explain.

When I travel, my bank charges me an automatic $5 for an International ATM withdrawal. On top of that, they charge an additional 3% of my withdrawal amount. In other words, if I want to withdrawal $100 in Mexico, Italy, or Peru - my bank charges me $8.

Wait! That's not all... Aside from the $8 in fees there will also be an ATM owner fee, which depending where you are could be anywhere from $2.50 to $5 per transaction. So between the ATM transaction fee and my bank's fees, it costs me a minimum of $10.50 (and up to $13) just to withdraw $100. That, my friends, is over 10% of my transaction - and completely ridiculous.

To minimize these harsh charges, I could take out a few hundred dollars each time and visit the ATM less often. However, there are setbacks to using your card so frequently in a foreign country.

One of the major concerns is the ATM eating your card. (Yes, it has happened to me and no, you will not get your card back.) Another serious concern are skimming devices. Thieves have been known to install undetectable magnetic card readers and skillfully hidden cameras on ATMs. Not only do they capture your card's digital information but they actually record you punching in your pin number. This is double trouble, folks. Many people have had their bank accounts completely wiped out this way.

So what's the best way to withdrawal money securely, with a minimum of fees and practically zero risk? The bank teller cash withdrawal. Assuming you have a major card such as VISA or MasterCard, it works in practically any bank in any country.

With my bank, there is a flat fee of $15 for using my card to withdraw cash from the teller. It doesn't matter what country I'm in, and there's no extra "3% of my total withdrawal" fee tacked on when I use this type of transaction. Additionally, my withdrawal limit is raised to $1000. With a ATM withdrawal, my limit is only $500. (And lets not forget the inconvenient fact that many foreign ATMs only allow for withdrawals of $200-$300USD).

The value of this transaction speaks for itself. I'm able to walk in to any major foreign bank and withdrawal $1000USD (in local currency) for a single charge of $15. There is no ATM transaction fee, I have a higher withdrawal limit, and the bank where you perform the transaction never charges a fee for this. (I've done this all over the world and never been charged, but always ask first just to be sure.)

It totally eliminates the risk of an ATM taking your card, or not distributing the correct amount of cash (or any cash!), and it eliminates the chances of fraud from card skimmers. It prevents shop owners, restaurants or bartenders from overcharging or double charging you, whether on accident or on purpose. It's simple, safe, and effective. Best of all, it only costs me 1.5% of my transaction per $1k withdrawl. I don't know about you, but that sounds a lot better than spending over 10% for a $100 withdrawal

Most of the time (in an effort to save the 3 minutes it takes in paperwork), the teller will tell you they have an ATM and to go use it. Simply inform the teller that there is a limit on the ATM, and you'd prefer to withdrawal more cash. Then ask what their charge is for a teller withdrawal. As I mentioned before, they always say "No charge". To process this transaction, the teller will ask for your bank card and your passport. They'll take those and fill out a quick form. Once they fill out the form, they'll ask for your signature and then put the charge through. Once approved, you're done. You get your cash, smile, and leave. It's that simple.

Keep in mind that sometimes foreign banks can be busy, have slow services, or lazy workers. Usually this isn't the case but remember that you're asking for a service their bank makes no money from (yes!, finally you have the upper hand!), so be sure to be polite!