“If you go overseas you’re going to get stung”: Australians charged an average of $15 for using ATMs abroad
Australians are being charged an average of $15 every time they use an ATM overseas, according to new data from financial comparison website RateCity.
Martin North, banking analyst from Digital Finance Analytics, told Ross and John that a combination of international fees, charges and poor foreign exchange rates are responsible for the high cost of withdrawing money abroad.
“The exchange rate is the worst one because you’ve got no idea what it’s going to be converted at,” Mr North said.
A lack of industry regulation on exchange rates allows banks to charge customers more.
“There are some rules which say it should be close to the exchange rate of the day…but there are many exchange rates of the day,” Mr North said.
Because of the changing nature of the exchange rate it is difficult to prove that customers have been fleeced.
International transaction fees do not reflect the cost to banks for making the transactions.
“It’s cheap as chips to make these transactions, so this is nothing to do with the cost of doing business… it’s just a way of making money,” Mr North said.