When travelling outside of Canada, you might decide to purchase local currency through an ATM. But do you know how much that costs? In this video, we take a look at a typical transaction and break down some of the common fees, namely the foreign ABM cash advance fee (charged by your card provider) and a separate foreign exchange fee (typically 2.5 per cent). There may even be an additional fee levied by the ABM network itself. ABMs may still be one of the more popular choices for converting currency, but if you travel often, it's worth looking into cards with lower foreign exchange and cash advance fees. If using your debit card, you'll want to find an ABM that operates on the same network as at home. Also note that interest charges will often start accruing immediately from the time transaction for the cash advances against a credit card.
For more tips on how to save money when accessing foreign currency while travelling, you can also check out this video with personal finance columnist Rob Carrick and budget travel expert Barry Choi.
Preet Banerjee